The most expensive domain name ever sold went for over $49 million, proving that the right website can be a huge asset.
If you’re looking to get into the domain investing game, you need to know how to turn a profit. To do that, you’ll need to count the cost of getting started and then start working to turn a profit.
Keep reading to learn how to start making money with domain names.
To determine if domain investing is right for you, you’ll need to analyse several factors:
If you sell domain names within a year of purchasing them, you won’t have to worry about renewing them. This will help you have a higher profit margin.
You will also need to consider how much time you’re going to put into each domain name and whether or not you want to build a website for it.
Setting up a simple website is a great way to show off what the domain name can do for a person. While this will also require you to pay for hosting, it can be worth the investment because of how much more quickly a site will sell.
Now let’s jump into the seven tips we have for you to help you make a profit through buying and selling domain names.
As you can see, taking the time to pick the right names will make a significant impact on your bottom line. You’ll also need to have the right mindset when it comes to making sales.
The first thing you have to do to turn a profit is to start building a portfolio filled with domain names.
Ideally, you would build this portfolio as diverse as possible. By having domain names in various industries and niches, you have a better chance of selling them even if trends and interests change.
One type of domain name that can do exceptionally well is current trends. While some are difficult to predict, others occur every few years. Consider websites that focus on things like elections, the Olympics, or sports tournaments.
With the year included in the domain name, it’s far more likely to be found by people looking for information about that specific event, and it increases its value.
The timing with these is also important because although you can never buy them too early, it’s certainly possible to sell them too late. Don’t wait for the event or trend to end before selling your domain name for maximum profit.
One of the most popular trends you can take advantage of when it comes to investing in domain names is niche marketing.
People looking to earn big bucks online focus on small profitable markets and need a great domain name to reel in as many prospects as possible. If you have the perfect website for them, they’ll be eager to buy it from you.
Be sure to do your research before buying too many domains in a particular market. Your goal should be to find a market that has a decent-sized audience without a lot of competition.
It may seem like having a large number of domains will provide an advantage when investing, but the truth is quality matters. After all, if you can’t sell a domain, it’s going to be a waste of money.
This is why we don’t recommend buying large amounts of domain names without taking the time to check each one. If a domain name isn’t going to resonate with potential buyers and a target audience, there’s no point in buying it.
As a result, you may have to pay more money initially for a domain name than you would like. However, if your chances of selling it for a profit are higher, then it’s worth the extra initial investment.
One way to get a great deal on a domain name that already proved to have some popularity is to buy an expired domain. These domains were in use previously, but their owners let them expire.
In some cases, these will have already had views, which makes them instantly more valuable than a brand new domain name. They’re also older, another aspect which increases their value.
While some people may have forgotten to renew their registration, others gave up because the website wasn’t profitable. Try to determine which was the case before buying to avoid making a mistake.
As you work on acquiring and registering domain names that will allow you to earn money, you also need to think about who you’re going to sell them to. You can’t turn a profit if you hold onto the names forever.
With each domain name you purchase, try to come up with a shortlist of people who may be interested in buying your domain.
These could include website developers that sell unique websites for a profit or niche marketers that run numerous websites. If you can find one or two people that regularly purchase from you, it will make the selling process faster.
Don’t over-estimate the amount you’ll get for your domain name. Doing so could mean losing out on a sale if nobody is willing to pay your asking price. However, if you under-value your domain, you won’t profit as much as you could.
Finding a happy medium may be difficult, but it’s worth it if you’re going to find a buyer.
Now you know seven ways to turn profits this year by domain investing. As you can see, with a considerable number of domain names registered every year, there is a big market for domain flipping.
If you’re looking to get started in the domain name business, the best way to get started is by buying a domain. In addition to purchasing your domain with us, we also make it easy to transfer it to its new owner once you’ve sold it.