Cash in on the Domain Name Sale Boom

Domain name sales have made the news recently as several owners sold their domains for over $600,000. You don't have to be a professional to cash in on the domain name sale boom, but it does help to have an idea on how to make the most of your chances. Here are some quick tips that will get you started on the right foot.

Domain Name Auctions

One of the easiest ways to pick up and then resale popular domain names is by checking out domain name auction sites. Afternic.com is widely used by beginners and professionals alike, and domains will stay listed until they have sold. You can also use these domain name sites to get ideas for popular domain names you can purchase on your own. You'll be able to get a sense of the market for specific domains and you'll also learn what names aren't selling. You can in turn use these auction services when you're ready to sell your domain name. Most will take a percentage of the final sales price, so typically, you won't have to provide any money up front.

Domain Name Appraisal Services

If you already own a domain name that you'd like to sell, your first stop should be a domain name appraisal service. These services will rank your domain against several factors to determine how much it is really worth. In most cases, you'll get a certificate that you can use later at your auction to prove the worth of the domain. Some of the most widely used domain name appraisal services are GoDaddy.com, DomainMart.com and Sedo.com. These services are fee-based and range on the low side at $9.95 all the way past $49.95 in some cases.

Market Research

Before you consider wading into the domain name sales pool, NameZero.com should be your first stop. This is a great resource to learn more about what makes a domain name desirable, and you'll pick up some great hints and tips, all for free. This is a terrific community and can benefit pros and beginners alike. Their forum contains over 1.2 million posts on all of the issues that come with domain name sales such as legality, trademarks and much more. Other great places to get ideas for popular keywords to use in domains are Google's Zeitgeist or Keywords Analyzer.

Domain Name Profile Management

If you are thinking of really getting into domain name sales, you'll need to manage your "portfolio" of domain names. There are several services that offer this capability, such as DNWare.com where you can track expiration dates, renew your domains in one easy sweep and manage contact information. This is a lot easier than purchasing and managing domain names one at a time. In fact, DNWare offers a desktop utility where you can easily manage your own domains and track domains that are about to expire, which is a great way to save money on popular domain names.

Overall, the initial investment to get into domain name reselling is quite low, particularly as registrars such as GoDaddy and 1and1.com keep lowering domain name prices. Expect to spend at least $25 per domain after purchasing the name and having it appraised. If you are planning on purchasing an existing domain, this price could range anywhere from a few dollars to a few thousand dollars. However, chances are, you'll be able to see a nice return on your investment.