HOW TO MAKE MONEY ONLINE BUYING AND SELLING DOMAINS
What is a domain?
Your domain is your address on the internet. If you have a website, you need an internet connection (a way to get online), a hosting service (a place to store all your website files) and a domain name (your address on the internet).
Domains are individual, there is only one of each domain name. You register your domain name with a registrar or a hosting service, where you pay a registry fee and then pay an annual fee.
If you have a website or a blog, you have to pay the annual fee for as long as you have that website. If you are flipping domains, you’ll only have to pay the registry fee unless you keep the domain for more than one year.
Hopefully if you are flipping domains, you won’t have the domain long enough to pay the annual fee. The fee for the registry is usually vey inexpensive, as low as $2.99 or less and as high as $25.00 or more depending on the registrar or hosting service and depending on if you can find a domain on sale or one that has a coupon.
Most people don’t realize how many people are making money by buying and then reselling domains and they don’t realize how much money can be made.
An article on Wikipedia has a list of the most expensive domain names. Among them are “Voice.com”, selling in 2019 for $30 million, “Hotels.com”, for $11 million and “Beer”, for $7 million. There are many more that have been sold for $3 million or more.
These are only the sales that are made public. Many more domains have been sold privately so it is unknown how much they actually sold for.
There are more selling for less , but they still sell for much more that their original purchase price. Even if you purchase a domain name for $10 and sell it for $150, that’s a $140 profit. Multiply that by 100 domains and you can easily make an extra $14,000 annually from this side hustle. Domain flipping can be as profitable as you want it to be.
This is another one of my favorites.
I came upon this method of making money online by accident. I would think of an idea for a blog or website and then buy a domain for that website. I would get busy on other projects and not have time to create the new website. Occasionally I would decide to just sell the domain name instead. After doing this several times, I decided to look for domain names just for the purpose of reselling them. I bought this very site that I am using for my blog, MakingMoneyCookbook.com, for $11.99 in 2020 and at this time GoDaddy estimates it’s value at $917 and I have a dozen or more valued between $500 and $1000.
Many people buy and sell domain names to earn money online since it takes very little time or investment. You can purchase a domain at its registration price or even much cheaper, using special codes or sales, and then resell it for a profit. But, it always pays to do your homework first on websites like Godaddy, Afternic, Sedo, or other domain auction websites in order to get a good idea of what’s popular in terms of domain names. There are many different ways to buy and sell domain names.
Many standard domain registrars, such as GoDaddy.com, will facilitate sales via auction, meanwhile, specialized websites, such as Sedo, are designed exclusively to buy and sell domain names. An ideal way to find really good names is to check out terminated lists that offer many expired names and have made their way back into the pool for people to buy. A good site for this is expireddomains.net where you can put in your desired keyword that you want in your domain name and a long list of domain options will appear.
How much is a domain name worth? Basically a domain name can be worth any amount of money, but good domain names can sell for thousands or more. Popular domains and short domains however can easily bring $100,000 or millions depending on a wide number of reasons.
An advantage to buying and selling domain names is that there is a very small investment.
Another advantage is that currently, there is not a lot of competition.
And also it is a very scalable business.
A disadvantage is that you may have to hold a domain for a while before you can sell it.
Another drawback is that just like any other side hustle, you have to treat it like a business. While you might not think of domain flipping as a business, it is. And for that reason, you’ll want to run it just like any other business, keeping track of your income and expenses. And don’t forget about taxes, as with any business. If you buy and sell a domain name for a profit, remember to set aside some money so you don’t incur a large tax bill at the end of the year.
Buying and selling domains is just like any other business. The real key is the purchase. If you don’t chose the right product to sell and if you don’t buy it at the right price, you will not be successful when tying to sell it
Some tips:
Try to buy domains with .com extensions. These seem to be more popular and are easier to remember. sometimes other extensions are available (.net, .org, .gov, .edu etc), but I would try to stick to the .com’s
You can buy local domains, for example “Chicagomovers,com”. Small businesses are starting up all the time, then you can sell the domains to these business owners.
Try to stay away from domains that are associated with established businesses and copywrited names. They could not only cost you a lot of time, but a lot of money.
What do you do to start?
This can be a very inexpensive way to make money online, there are many places to register domains, GoDaddy, Namecheap, Whois. etc. Pick your registrar and register your domain. Then look for a company where you can auction the domain (GoDaddy and Sedo are two that I know of). Once you’ve sold your domain, repeat the process.
Buying and selling domain names has unlimited income potential
I hope this article about buying and selling domains was entertaining and educational. I love showing you different ways to make money online. Keep checking this blog for more articles on how to make money online. Thank you for reading and please send in any comments or questions and please share this site with your friends.
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