How to Sell a Domain Name

With thousands of domain names changing hands every day, domain flipping has become a lucrative business. There are actually several reasons for selling a domain name. Perhaps you have an unused domain that you have not done anything with, or you may wish to become a domain investor. Whatever the reason, selling a domain name is never an easy task. However, this article will provide you with some tips.

What’s in the name?

Before you sell a domain name, it’s important to understand what makes a domain name valuable. You’ve probably heard stories of domain names selling for anywhere from a few dollars to millions of dollars. So what makes some domain names more valuable than others? The answer to that question is not as complicated as you might think. There are actually several key factors that make a domain name valuable. They are as follows:

• Length – Shorter domain names are harder to find than longer ones. However, everyone wants a short domain name for obvious reasons, shorter domain names are easier to type in a web browser. The greater the demand for a commodity and the tighter its supply, the higher the price of that commodity. It really is the first thing that enters our eager minds when we take basic economics classes.
• Keywords – If your domain has keywords in it, this will also increase the price you can get for that domain, especially if that keyword is particularly popular in your chosen industry. The reason is as follows. Keywords are used in SEO, or search engine optimization, to help your customers find your website on search engines like Google. The more efficiently you use your keywords, the better your ranking will be. Part of using keywords effectively is using descriptive keywords in your domain name in some way.
• Branding – Domains that are easy to brand will command a higher selling price. Use a name that is easy to remember and easy to type into your browser. Think Google. They created a domain name that is both concise and memorable. Ideally, your domain name should have the following six characteristics:
  1. descriptive
  2. Unique
  3. user friendly
  4. believable
  5. briefly
  6. memorable
• Top-Level Domain – This may not seem like a big deal, but the TLD you use can greatly affect how much your domain sells. According to an article by NURV, a creative marketing firm based in Colorado Springs, Colorado, 46% of sites on the internet use a .com top-level domain, even if only as a redirect or landing page. Have you ever wondered why this is? The boom in .com domain names began around the same time that e-commerce began to take off. A series of high IPO sales, or initial public offerings, allows a person to grow his business with little to no profit. (An initial public offering is typically a series of shares issued to investors.) Growth was astronomical, especially considering his company barely made a profit that year. This man is Jeff Bezos, the founder of Amazon. Nearly a year later, in 1998, eBay founder Pierre Omidyar would grow his company in the same way. After seeing these two companies become such powerful companies with almost no profits, a massive wave of speculation began among investors. Because nearly every brick-and-mortar business uses .com domains, this speculation has driven their value to extraordinary heights. In fact, .com domains have matured so much that people continue to pay millions of dollars for a full-fledged .com domain, even today! For example, domain registrar GoDaddy lists the 25 highest-selling domain names of all time. Note that the minimum selling price for these domains is still quite high at $5.5 million. The most expensive domain name ever sold: CarInsurance.com for $49.7 million! Fun fact: In the 22 years since the .com boom, Jeff Bezos has not only become the richest man in the world, but he’s also the richest man in the world. According to an article by Wealthy Gorilla, he was the first billionaire.

So how do you sell a domain name?

You have now decided that you want to sell your domain name. However, you should hold off until immediately putting your domain name on the market. Most sellers go through a sales process that makes things easier for both you and the buyer and ensures that you get your money and the buyer gets their domain name.

Step 1: Evaluate your domain name

The first step in the process is to determine the value of your domain name. This can be done through a variety of channels. You can evaluate your domain name yourself, or have a professional evaluate it.

Self-assessment is more challenging than tangible goods like a house or car, but the same process can be used. Some people look at sale prices for similar domains and work from there. A great resource you can use when trying to evaluate domain names yourself is NameBio. They have a keyword-based search engine to find sales prices for specific domain names. You can find information about the lowest price, highest price, average price, who sold the domain name, and other relevant information.

But suppose you can’t find a value for a specific domain name. In such cases, it can be helpful to seek the services of a professional appraiser. Professional appraisers have intimate knowledge of the market and can provide valuable insight to help you determine a fair market value for your domain name.

Step 2: Set a price for your domain

Now that you’ve determined the fair market value of your domain name, the next step is to develop a pricing strategy. While most domain names, especially aftermarket domain names, sell for in the three to four-figure range, if you have a premium domain name, you can often attract buyer interest for less than fair market value. For such domain names, it is usually recommended to set the asking price directly. Another benefit of using a fixed-price “Buy Now” or “Priced to Sell” pricing strategy is to create a feeling that they might lose their chance to snag a good domain name at any time, since the buying market is usually fast and angry, especially When your price is lower than it should be. It’s also a great strategy if you’re looking for a quick sale.

However, if you have a premium domain name — one that you know can sell for six or even seven figures — then you can set the price well below fair market value to generate interest. If your domain name is really in high demand, you can start a bidding war that can drive your selling price closer to or even above fair market value, creating the potential to make huge profits!

Step 3: Create a landing page indicating that your domain name is for sale

When buyers choose a domain name they want to buy, they typically type it into their browser to see if it’s available. Creating a landing page on your website often goes a long way toward closing the deal.

There are several creative ways to point buyers to a landing page like this. The most common method is to place redirects. Make sure to create landing pages for each domain you want to sell. For example, a page on lowinterestrates.com that is on another domain’s login page can confuse buyers. Most landing pages have an inquiry form that the end user can use to gather more information as well as contact information.

Never underestimate the value of human communication when closing a deal! Some buyers actually prefer a human connection, and you don’t want to rule these out, especially if you’re looking for a quick sale.

Step 4: Choose a way to sell your domain name

When selling a domain name, it’s wise to avoid putting all your eggs in one basket. Many sellers sell domain names using domain listing sites as well as person-to-person selling. Below is a list of reputable domain marketplaces. Aternic, BrandBucket, NameCheap, and Sedo are also great marketplaces to use.

Another place you can use is an auction site. GoDaddy Auctions is one of the most popular domain auction sites around. You can also encourage buyers to contact you for more information, and then let them enter their bids on auction sites when they’re considering purchasing a domain name. Many auction sites will deduct a commission from your sale price, but the peace of mind you get will always be worth the price you pay, as many have their own transaction security measures in place.

However, as with all other transactions, it is wise to do due diligence on the buyer. Some marketplaces have commenting features. Read what sellers have to say about buyers. These reviews can give you a good idea of ​​whether or not your potential buyers are trustworthy. Don’t do business with anyone you’re not entirely sure of. Not worth the risk.

Step 5: Use an escrow service to facilitate funds transfers

If your transactions involve large amounts of money, consider hiring an escrow service. Some marketplaces and auction sites have their own hosting services. Do your research on the marketplace or auction site you plan to use, and if they don’t use their own hosting, it’s best to hire one yourself. Escrow services make large-money transactions more secure because buyers won’t receive your domain name until full payment has been made.

Essentially, an escrow service acts as a broker between you and the buyer. The parties enter into an agreement detailing the terms of the sale, including the sale price and the name of the domain being sold. The buyer submits the payment to an escrow account, which is delivered to you (as the seller) by the escrow service. You then contact the domain registrar and the domain name is transferred to the buyer, who sends written confirmation to the escrow service that they have received all rights to the domain name.

In the event that either party fails to meet the terms of the agreement, the escrow service will have all the details of the transaction, which can be presented as evidence should the event involve litigation.

In this article, we discussed how to sell domain names. While this is not a complete guide, we hope you have an overview of the process involved.