Reselling Domain Names - A Get Rick Quick Scheme?

If you even have a slight interest in the domaining business

, you know that reselling domain names can be a lucrative business. Many domain registrars and aftermarket services have made millions off the buying and selling of these names.

There are probably more individuals who have absolutely made fortunes picking up domains for cheap, say between $10 - $500 and selling them at rates of return that almost seem illegal.

I once picked up a domain that was free to register for $19.95 and sold it for $4K within 18 months. Try getting that rate of return at the bank or on the stockmarket. Unless you are prepared to sell something illegal, you won't see that return on investment offered any place.

So with money to be made in this industry, it is no surprise that many people are buying and reselling domain names with the hope of making a killing. Nothing wrong with that - after all - it is the American way.

The problem is that the a lot of names being registered and listed on aftermarket websites are horrible. The end result - no one buys them and the names are either not renewed after a year or renewed for another year with the hope of selling them.

Sure, there are cases where not-so-good names have been sold for a solid profit. But resellers will make profits far more consistently by doing their research and buying relevant names.

By relevant I mean you only register domains that you intend on developing and reselling or domains that have the product or service keyword in them.

Developing a name into a website increases its valuable tremendously and doesn't cost much to do either. Simply install a free Wordpress blog on the domain, add some content and get backlinks to it. Sooner or later, the domain will start getting traffic so it.

So when you resell the name, you can show that it is getting search engine traffic - which makes the name easier to sell.

The alternative to developing the name is reselling domain names that have good keywords in them. So if you want to register a domain for the landscaping industry - look to register a domain that has the word "landscaping" and perhaps a geographic location. So "Nylandscaping dotcom" would be great for a landscaping business in New York.

There is a third alternative for profiting in the domain resale business. You could check out websites that specialize in finding hidden domain gems and offering them to investors at very affordable prices. You could buy a couple domains from those sites and resell them for a good return on aftermarket platforms such as Sedo and TDNAM.

The key of course, is being able to locate these websites.

by: David Cassell

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