Many of my friends think that I’m addicted to buying website domains because I seem to constantly be doing that, which is true, but there is a good reason behind it: Cash.
I’m not a big domain seller, meaning, I don’t buy domains for thousands of dollars and then sell them for 5 times the amount, but I do buy domains for as low as $20, and usually sell them for double or triple what I paid, which means quick fast sells, where I usually double my money. That’s $20 or more from nothing, with very minor work.
I’ve been lucky in the past where I’ve bought a domain for less than $20, and sold it for several hundred. I actually bought the Grunch domain with money that I obtained for selling a few domains that I thought were crappy, but someone wanted them bad. So i got $500+ for them.
Basically, I just look at expired domain lists, mostly at Godaddy. Name.com used to have a good expired list, but they recently changed the way their site looks, and it just sucks now.
But really, Godaddy is all you need to do this.
What Godaddy does is try to auction off all expiring domains that are about to drop and be deleted. Many Registrars do this, but Godaddy has the best price, along with a buy it now option. This is their attempt to make money from nothing.
Daily I’ll head on over to the auction page at https://auctions.godaddy.com/, and sort the search filters with options to only show me expiring domains, with the BUY IT NOW option, I also filter out domains with numbers and dashes. Also I only look for .coms.
I usually filter out newer domains and put the age at 10+ years, but the domain I’ve sold for the most so far ($300+) was a new domain that was only a couple years old, that I only saw because i left the age out. My idea behind the aged domains is that if they’ve been registered for so long, they must be of some value, right?
And then on the search results I click the “Price” table column twice so it sorts the more expensive domains first, which are the newer ones, and since they’re newer, there is more of a selection since they haven’t been picked off yet. The cheaper domains are $5, and most expensive are $11, but stay in mine that you still have to add the renewal fee to this price, so the total price will be around $25, but you can use coupons to make this price around $20 or less.
Each day that goes by, the domain price drops, so I’ll go from $11, to $10, to $8, to $5 and then eventually drop.
Then I pretty much scroll through the pages, checking the name and age of the domains. If I see a really good one I’ll immediately buy it. If I see one that is okay, I’ll usually write it down, and keep checking it each day as the price gets lower, and eventually grap it when its listed at $8 or $5. But this is a bad practice, because I’ve lost chances at many very good domains by being cheap. If you see one you like that you think will sell, grab it! Don’t wait.
Keep in mind that even though there is a BUY IT NOW button, you wont actually get the domain now. Instead, Godaddy will take the payment, and remove the domain from the listing and list you as the winner, but you have to wait for the domains expiration date to drop off, which it then will be automatically added into your godaddy account, but don’t worry! You wont lose the domain age, the age will remain intact. Age is valuable in the domain industry, the older the domain WITHOUT DROPPING, the more value it has.
It’s usually 43 or so days from the expired date listed in the whois of the domain is when you’ll get the domain. But godaddy also lists when you’ll obtain the domain in the auction winner information.
Click on the bidding tab, and a list will drop down, then head over to WON, and it’ll give you a list of the domains, and on the very far right there will be status, which is where the date will be listed when you obtain the domain. Usually is a few days to a week after the auction end date, So you wont have to wait too long, certainly not 43 days. This domains were already long into the expiration timing before Godaddy Listed them to be sold.
You’ll get an email the date Godaddy adds them into your account.
I used to wait 60 days before I tried to sell a domain, but I don’t think you have to do this if you’re selling a domain to another godaddy user. I think the 60 day wait in the ICANN rules is from the Registrar date, i could be wrong though.
But what domainers usually do is do a FREE PUSH to the buyers account on the same Registrar, This should bypass the 60days, and also its free, so no transfer fees are required.
Keep in mind that You have to actually buy good domains. Alot of newbies make the mistake of buying random crap domains, don’t do this. The domain needs to be short, clean, and have some meaning and way to actually use it. Look for keywords that will define the site, these are great for SEO, and I’ve seen people even sell crap domains before just based on the keywords in the domain.
Now how do you sell the domain you just bought?
My Practice is very simple, I just head on another to a popular Domain Selling forum, where I list the domains for free. The forum I prefer going to now is NamePros.com, I used to visit other forums such as DigitalPoint and sell domains back in the day, but their rules are so crazy anymore, its hard to do any business. NamePros is all you need. There are listing sites such as Sedo that you can use, but I prefer a quick fast sale, where I at least double my money. I’m not looking into getting rich, unless the domain is really good.
I usually list the domain in the “Make an Offer” forum to see which offers come, sometimes this is enough to make a quick sell. I’ve notice lately that even on domains that I have trouble selling, I can set up an auction on the forum where people seem to go crazy for domains. I think the longer they think about the domain the more they want it. So a domain I could’ve easily sold for $20-30 is now selling for $50 or even more via the auctions.
Either way, this is very small easy work where the costs are low, and the rewards at least doubles your money. Sometimes even quad-triples it.
Keep in mind that you’re dealing directly with the buyers when you list in the forum. The website has no control over the transaction. So you’ll need to research the buyer before you accept their offer. Sites such as NamePros have iTrader feedback, which will display how many transaction they have participated in, along with a negative and positive review.
I’m usually very hesitant with newer member accounts with zero feedback. If I am selling a domain for super low I’ll usually go ahead with the sell, but if it looks sketchy i’ll back out. But since its between you and the buyer, if you get scammed, then its your lost. The site has no control over it. Free open market place that you are using for free.
Now I’m not a huge domain seller, and I don’t spend that much time doing this, But i can imagine that if you went crazy with this, you could be making lots of money, and maybe this could be a way for you to get your foot into the door.
You don’t have to only sell domains on NamePros, you can also be the buyer. Imagine this scenario, which has happened many times: Buy a $20 domain on Godaddy Auctions, Sell that domain on NamePros or another domain selling website for double or triple the money. Repeat this process several times without much work until you racked up a few hundred dollars, then you buy a much better premium domain on NamePros. Now you can hold on to that domain for a few months, and then list it for resale, and double that money if not make thousands. This happens all the time. I get a bit scared of dealing with this much money, but it does happen.
NamePros isn’t only a site for selling and buying domains. There is also alot of knowledge being posted there to help you learn the domaining business, help make the right decision, and just learn more and more. There are pros there that deal with thousands and even millions of dollars with domains. I suggest heading over there, sign up for free, and read some of the discussions.
Domaining is pretty much finding the right buyer which can take some time, but I sell quickly. Sure, many of these domains I’ve probably could’ve sold for much, MUCH more money, but since I wanted quick sales. Doubling my money meant I’m getting easy money from thin air almost. That’s enough for me.
If you wish to check out other expiring domain auctions other than GoDaddy, you can check out Namejet.com, which auctions off expiring domains from eNom, and SnapNames. I’ll list more as i find them, but I pretty much stick with Godaddy due to how easy and simple it is.
There is no limit to the amount of money you can generate by doing this. Depends on the time you put in, and the quality of the domains you look for. I’m no where close to being one of the big players, but you could easily become one. It’s all up to you!