Are you sitting on an idle domain name, unsure what to do with it?
Well, guess what? Learning how to sell a domain name can put extra cash in your pocket. And if you play your cards right, you can flip this one-off gig into a full-fledged venture.
The market is hot, with premium domain names commanding sky-high prices. For instance, the domain name laba.com sold for $99,000 at a GoDaddy auction. Seven letters and a dot, and boom—a massive payday!
Here’s the inside scoop on selling domains, plus the pros, cons, essentials, and tips.
- Why You Should Consider Selling a Domain Name
- Problems With Selling a Domain Name
- What You’ll Need to Sell a Domain Name
- Where to Sell a Domain Name
- How to Sell a Domain Name: Step-by-Step Instructions
- Things to Consider When Selling a Domain Name
- Frequently Asked Questions
- Similar Tutorials to Check Out
- Wrapping Up
Why You Should Consider Selling a Domain Name
Check out the top reasons that make domain selling an enticing revenue stream:
- Minimal Startup Cost: Selling domain names doesnt’t require a hefty upfront investment. For starters, you can buy expired domains with existing backlinks and traffic.
- Unlimited Earnings Potential: The sky’s the limit when it comes to selling premium domain names. Plus, you can generate passive income through leasing or domain parking.
- Ever-Expanding Market: More and more people are jumping into the digital bandwagon, aiming to cement their online presence. You can tap into this market by acquiring domain names and selling them at a higher price.
- Flexibility: You can do it as freelance work while keeping your day job. Or, you can go all in.
Problems With Selling a Domain Name
While domain selling can be profitable when done right, there are also potential drawbacks to consider:
1. Lengthy Sales Process
Flipping a domain name is more like a marathon than a sprint. It won’t be the best fit if you’re looking for immediate cash flow or quick transactions.
Some domain names have limited appeal within specific niches, making it difficult to find interested buyers.
On top of that, negotiating the sale price and completing the domain transfer can be time-consuming. It takes patience, perfect timing, and the right buyer to hit the jackpot.
2. Fierce Competitiom
Selling domain names isn’t a unique business idea. You’ll face tough competition from other domain sellers, all vying to snag valuable domain names.
So, keep your eyes peeled for Google trends and frequently visit domain registration websites.
You’ll want to get first dibs on the juiciest domains to stay ahead of the game.
3. Uncertain Valuations
It’s not always clear how much a domain name is worth until someone is willing to buy it.
Unlike a traditional product with a fixed price, determining the exact value of a domain name is subjective.
Factors such as market trends, relevance, keywords, and brand potential all come into play here.
4. Holding Costs and Renewal
Owning a domain name isn’t a one-and-done purchase. Along with acquiring the domains is an ongoing burden of holding costs.
Expenses like annual renewal fees, listing fees, and ad placements can pile up over time, especially if you have a considerable portfolio.
What You’ll Need to Sell a Domain Name
Here’s a breakdown of what you’ll need to start a business selling domains:
- WHOIS Record: A WHOIS file containing your name and contact details is proof of domain ownership. It helps potential buyers find you, so keep your information complete and up-to-date.
- Detailed Listing: A detailed listing should paint a picture of your domain name’s revenue potential. Include relevant information such as domain age, keywords, backlink profile, traffic statistics, and other unique selling points.
- Domain Registrar Account: You need a domain registrar to manage your domains and transfer ownership upon a successful sale. Some of the best registrars in the market that also offer WordPress hosting are Domain.com, Namecheap, and Network Solutions.
- Escrow Service: An escrow service acts as a trusted middleman in the domain sale process. It ensures that you get paid for your domain name, and the buyer receives the domain they paid for.
Where to Sell a Domain Name
You can sell a domain name through any of these means:
1. Via a Private Sale
You can sell a domain name on your own by setting up a webpage on that domain’s URL. It’s the fastest way a potential buyer can look you up on a search engine.
What Makes This Option Great
Selling your domain name privately offers you control and direct communication with potential buyers.
Although it requires technical knowledge, the freedom and potential savings on commissions and fees make this option attractive.
- Fees/Commissions: None
- Payment Methods: Any payment method you prefer
2. Via a Domain Name Marketplace
The domain name marketplace is a vibrant community that connects you to buyers seeking unique online identities.
What Makes This Option Great
These platforms provide convenience and exposure to an enormous pool of potential buyers. Besides, you can take advantage of the complementary escrow services.
| Domain Marketplace | Fees/Commissions | Rates | Payment Methods |
| Afternic | Sales commission | 20% | ACHPayPalCheckWire transfer |
| Sales commission using a supported nameserver | 15% | ||
| Porkbun | “Buy It Now” parking fee | Free | PayPal |
| Sales commission | 7% | ||
| Efty | Subscription | Starts at $15/month | Credit card |
| Sales commission | None |
3. Via a Domain Broker
A domain broker facilitates the sale of a domain name on your behalf. By leveraging their expertise and connections, they can help you navigate the domain market by offering these services:
- Market research and branding analysis
- Marketing and promotion
- Negotiations
What Makes This Option Great
Domain brokers know the market inside and out. They can assess the potential value of your domain based on market demand and other domain name metrics.
| Domain Marketplace | Fees/Commissions | Rates | Payment Methods |
| Brannans | Sales commission | 15% | Available upon request |
| Grit Brokerage | Sales commission | Available upon request | Available upon request |
4. At an Auction Site
Domain investors come together at auction sites to bid on domains and flip them for a profit.
What Makes This Option Great
The auction format encourages competitive bidding, driving up the final sale price of your domain. These platforms handle the entire sale process, from showcasing your domain names to finalizing the ownership transfer.
However, remember that these services don’t come cheap and can put a dent in your wallet. So, weigh the value they bring against the costs involved.
| Auction Site | Fees/Commissions | Rates | Payment Methods |
| GoDaddy | Listing for GoDaddy Auctions member | Free | Debit or credit cardPayPalBank transferOnline banking |
| Featured listing on GoDaddy Auctions homepage | $19.98/listing | ||
| Featured listing on a Category page | $9.99/listing | ||
| Commission on domains sold through an aftermarket nameserver | 15% | ||
| Commission on domains sold without using an aftermarket server | 25% | ||
| Flippa | Listing fee | $29 | Debit and credit cardPayPal |
| Sales commission | 5–10% | ||
| Sedo | Marketplace auction | Free | PayPalAlipayKlarnaCartes BancairesCredit card |
| Private auction startup fee | $59 | ||
| Auction events | $10 | ||
| Sales commission | 15% |
How to Sell a Domain Name: Step-by-Step Instructions
Follow these comprehensive guide on selling domains:
Step 1: Research the Market
Even if you think your domain name is worth a fortune, it’s crucial to check if the market is on your side.
If similar domains are selling for way less than what you had in mind, it’s better to rethink your goals or hold off for a better opportunity.
NameBio is a nifty tool you can use to study the current market. It has an extensive domain sales database, giving you live data on how much your competitors are making.
You can even dig up data as far back as five years to determine how the market shifts for these names.
Step 2: Determine Your Domain Name’s Value
Now, it’s time to figure out how much your domain name is worth and put a price tag on it. Below are some domain valuation tools you can use:
Note that the appraisals you’ll get are only ballpark figures and not foolproof. A better alternative is to enlist the service of a domain broker who can give you an optimal price point for your domain.
Step 3: Make Your Contact Information Public on WHOIS
A simple domain search on a lookup tool can hook you up with a prospective buyer. The buyer targets a specific domain name, and if it’s an exact match to what you’re offering, they can reach out to you directly.
That’s why it’s in your best interest as a domain seller to list your contact information on the WHOIS directory.
You want potential buyers to find you, even without browsing the marketplace.
Step 4: List Your Domain Name
Instead of checking the directory, buyers can just type the address of your domain on their browser to see if it’s up for grabs.
You can create a landing page on your domain to advertise it before listing the domain name on your chosen platform.
If someone lands on your for-sale page and sees a link to the listing, that could be a potential sale. This is how domain parking works!
Lastly, set a realistic price. If you’re listing a premium domain name on an auction site, you can bring the price below fair market value to stir interest and spark a bidding war.
Step 5: Optimize Your Domain Listing
Consider these tips for crafting an irresistible listing:
- Emphasize the current value of your domain in terms of ad revenues, search engine rankings, and website traffic.
- Use social media to boost your domain’s visibility.
- Engage with other sellers on domain-selling forums.
Step 6: Use an Escrow Service to Facilitate Payment
You’ll likely receive free escrow service when selling domains on a marketplace or auction site. Meanwhile, you must buy a separate escrow service when making a private sale.
An escrow service is a reliable third party that secures the domain sale for everyone’s peace of mind.
The payment goes to an escrow account while you transfer the domain ownership. You’ll receive your funds once the buyer receives the domain.
Step 7: Finalize the Domain Transfer
Follow the specific instructions provided by the platform you’re using. Typically, you’ll provide the buyer with authorization codes for the transfer.
Once the buyer completes the transfer and takes ownership of the domain, congratulations, you’ve successfully sold your domain!
Things to Consider When Selling a Domain Name
Let’s explore some key points to keep in mind when selling domains:
- Domain Valuation: Evaluate your domain name’s fair market value by taking into account factors like domain extension, length, and keyword popularity.
- Legal Considerations: To avoid any legal consequences, conduct thorough research to ensure your domain name doesn’t infringe upon any existing trademarks.
- Documentation: Keep proper documentation of the sale, including invoices, agreements, and records of communications.
- Target Audience: Identify the industry, niche, or business that can use your domain. Tailor your marketing and outreach efforts to reach the right audience.
Frequently Asked Questions
Can I Sell My Registered Domain Name?
Absolutely! You can sell a registered domain name that you no longer find useful.
If it’s brandable, it could be worth a lot. Just make sure your domain name isn’t infringing upon anyone’s trademark.
How Do You Price a Domain Name?
Pricing a domain name depends on various factors. You must consider the domain extension, length, clarity, keywords, and brandability.
For example, the .dom extension is most attractive for businesses and fetches a higher price. A short, memorable domain name that contains a popular keyword or targets a specific niche is also more valuable.
Similar Tutorials to Check Out
Apart from domain names, you can try your hand at selling other digital assets. These tutorials will equip you with practical advice on selling some of the most sought-after digital products:
- How to Sell Digital Downloads on Etsy: Launch an Etsy shop selling digital downloads, such as e-books, fonts, and logos.
- How to Sell Digital Art: Cash in on your artistic skills and creativity by selling your digital art online.
- How to Sell a Website: Find out how to get a fair valuation and the best price for your website while increasing organic traffic.
Wrapping Up
So, don’t miss the opportunity to capitalize on your unused domain. Master how to sell a domain name, and you can kick-start a lucrative career in domain flipping.
Remember, premium domain names hold incredible value, and you can use this guide to gain better insight into the digital market.
Please comment below if you think selling domains could be your next side hustle.
Also, it would mean a lot if you could share this article with your entrepreneur-savvy friends!
