So you have been sitting on a couple of domain names for a while now and you are starting to think about cashing in. Or maybe you just bought a bunch of domains on a whim and now are regretting the decision it.
Either way, you are in the right place. In this article, I’ll outline seven steps for selling domain names and make sure you get the most bang for your buck.
Before we get started, there are a few things you should know. First, this is not a quick or easy process. It can take weeks or even months to find the right buyer. Second, you won’t get rich quickly.
Unless you own a truly unique or valuable domain, you are probably not going to make a killing. That being said, the sale of a domain name can be a nice way to earn some money or even turn a profit if you play your cards right.
Selling Domain Names Table of Contents
Understanding the Basics of Selling Domains
If you are thinking about flipping domains, it’s vital to understand the basics of the domain market. Domain sellers are individuals or businesses who own domain names and are looking to sell them.
Domain brokers are middlemen who help connect sellers with customers. The domain market is the online marketplace where domain names are bought and sold.
To begin, you will need to list it on a domain marketplace. There are many different domain marketplaces, so it’s important to choose one that’s well-established and has a good reputation.
The top three domain name marketplaces used by many domain owners are Sedo, Afternic, and BrandBucket. These are all great choices and will give you the best chance of success with the whole process.
Sedo
The Sedo marketplace is a great way to find the perfect domain for your domain flipping business. With over 18 million domains on their marketplace, it’s likely that you will be able to get what you are looking for in no time at all.
And because Sedo has such an extensive selection of available names and offers them all for free with commission fees between 10-20%, this site really does give everything without any hassle whatsoever.
This makes me wonder why anyone would buy from anywhere else when there are so many possibilities right where waiting to be discovered.
Afternic
Whether you want to make a quick buck or build an online portfolio, Afternic is the place for domain names. With over five million domains available and 75 million monthly searches, there’s no shortage of potential customers.
When you list your domain name for sale on Afternic, it will also show up as a high-valued domain through GoDaddy.com, which has more than 18 billion visits per month. Listing a domain name on Afternic is free, but you pay a 20% commission for a successful sale.
Afternic is a great option for selling your domain name, especially if you are hoping to reach those looking to buy through GoDaddy’s massive customer base.
BrandBucket
BrandBucket is the ultimate destination for anyone who wants to start their own sustainable business or launch an established one.
With a curated marketplace of domain names, make it easy for individuals to imagine what they could do if they bought your domain.
Listing fees begin at $10 but you have to abide by a clause that exclusively prevents you from trying to sell it on another platform while it is listed on theirs.
Additionally, they have a 30% commission on all sales which is a pretty hefty cut.
Despite the high listing fees and commission, BrandBucket is still a great option. They have a large selection of domain names and their marketplace is easy to use.
Now that we’ve got that out of the way, here are the seven steps you must take for a successful domain sale:
1. Assess the value of your domain name
2. Price Your Domain Name
3. Create a Listing
4. Place Your Domain Name up for Auction
5. Use an Escrow Service to Move Money Between Accounts Securely
6. Negotiate with buyers and finalize the sale
7. Complete the transaction and receive payment
Assess the Value of Your Domain Name
The first and most important factor in determining the value of a domain name is if it is a highly sought after domain. A domain name that is highly sought after by many different businesses or individuals is going to be worth more than a domain name that isn’t as highly sought after.
This is because there are typically more people looking for a particular domain name and therefore the domain name can be sold for a higher amount.
Another factor that contributes to the value of a domain name is whether or not the domain name is a premium domain name.
Premium domain names are typically shorter, easy to remember, and have positive connotations. They are also usually .com domains, which are the most sought after domains.
Because the premium names are so highly coveted, they typically sell for much higher prices than lesser value domains.
If you are interested in selling your domain name, these are two important factors to keep in mind when trying to determine how much your domain name is worth.
Price Your Domain Name
When setting a price you want to sell your domain for, it’s essential to reach a balance between pricing it too high and pricing it too low.
If you make the price of your domain name too low, you may not make as much profit as you could have if you had advertised it much higher.
But if you make the price too high, you risk losing prospective buyers who may feel that the cost is a bit high for them.
It is good practice to develop a pricing strategy and come up with a reasonable asking price before you put your domain name up for sale.
This way, you can be sure that you are getting the most money possible for your domain name. You can also look at what others in the market are pricing their domains for and price yours accordingly.
One commonly used pricing strategy is setting a “Buy-It-Now” price. This type of pricing creates a sense of urgency for purchasers and makes it more likely that your domain will sell.
Additionally, domains with a Buy-It-Now tag are typically more valuable than those that are simply listed as “make an offer.”
Create a Listing on a Landing Page
Once you have established a reasonable fixed price for your domain name, the next step is to make a listing.
A domain name listing is simply an advertisement for your domain name where you put all of the important details about the domain.
A landing page on your blog or website is a great place to place a listing for your domain name.
When creating a listing, be sure to include all of the important details about the domain name such as the domain name itself, the age of the domain, and the registration expiration date.
It is also a good idea to incorporate keywords in your domain name listing so that prospective buyers can easily discover your domain when they are searching for domain names to buy.
Place Your Domain Name up for Auction
When the time comes to sell your domain name, one of the best places to do it is through an auction site. This allows potential buyers to see your listing and place an offer for it.
There are a few different auction sites to choose from, so it’s essential to do some research to uncover the one that’s right for you.
A typical online auction will last for a week or two, giving potential buyers plenty of time to place their offers. At the end of the auction, the highest bidder wins and pays you the agreed-upon price.
If you are not comfortable with auctioning off your domain name, another option is to list it on any of the well-known domain marketplaces.
There are a few different domain marketplaces, but the well-known auction sites used by sellers and brokers are:
- GoDaddy Auctions
- Flippa
- Namejet
GoDaddy Auctions
As the world’s #1 domain registrar, Godaddy is a popular marketplace for secondary domains with 900,000 monthly visitors. You can list your domain names for sale in a variety of ways, including Buy-It-Now with a fixed price, Make Offer, or a 7-day auction. With so many potential buyers, you are sure to ascertain a buyer for your domains if they are valuable.
Flippa
Flippa is a website where you can acquire and sell online businesses, as well as list domain names for auction. While it isn’t as popular as it once was, it still sees 2 million monthly visitors, and a lot of domain names are sold everyday on the site.
If you are interested in listing a domain name for auction on the site, it will cost you $9. If your auction is successfully sold, they will take a 15% success fee.
Namejet
NameJet is a domain name aftermarket company that operates an auction platform that is a top choice among domain name investors. The site has a large number of buyers and moves a huge number of secondary domain names every day.
Not everyone can list domain names for sale on NameJet, but the site provides an online option to submit your domains for consideration for an upcoming auction.
In order to provide the highest quality of domains to their buyers, they do not auction all names submitted; your names are forwarded and reviewed by the NameJet team.
To submit your domain name, you will need to have an active account first. The commission on a successful sale is 15%.
Once you have selected a site, you will need to create a listing for your domain name. Be sure to add a description of the domain and any relevant keywords that buyers might be searching for.
You will also need to set a starting price and reserve price (the minimum amount you are willing to accept).
Once your listing is live on your chosen domain marketplace, people will start placing bids. The auction will close after a set period of time, and the highest bid will win the domain name.
If you are not happy with the final bid, you can always relist the domain or sell it privately. However, auction sites are a great way to sell domains and connect with potential buyers from all over the world.
Use an Escrow Service to Move Money Between Accounts Securely
When you are ready to sell domain names from your domain portfolio, it would be prudent to use an escrow service to protect both yourself and the purchaser in the deal.
Escrow services act as a neutral third party to hold onto funds from the buyer until the domain transfer has been finalized.
Setting up an escrow account is simple and only requires a few minutes. Most domain selling sites offer a free escrow service as part of the domain sale process. If you are going to sell privately, you will need to set up an account with a service like Escrow.com or Payoneer.
The buyer will then have a set amount of time to complete the domain transfer process. Once the domain has been successfully transferred, the funds will be released from escrow. This protects both parties in case something goes wrong during the process of transfer.
Escrow services are not only for selling; they can be used for any type of online business arrangement where you need to protect yourself or the other person.
Negotiate with Buyers and Finalize the Sale
Before you can get paid for your domain, you first have to negotiate with buyers and finalize the sale. To be successful in this endeavor you need to:
- Know your domain name’s worth
- Find the right buyer
- Negotiate like a pro
Know your domain name's worth
The first step in any negotiation is understanding your value. In order to do that, you need to research recent sales of similar domains and get an idea of what buyers are willing to pay.
There are a number of resources online that can help you with this, such as EstiBot and GoDaddy’s Aftermarket.
Find the right buyer
Not all buyers are equal. You want a buyer who is willing to pay what your domain is actually worth, not someone who is looking for a bargain. The best way to do this is by using a broker or marketplace that specializes in domain sales.
These platforms will give you access to a large pool of prospective buyers and make it easy to communicate with them.
Negotiate like a pro
This is where the rubber meets the road.
Remember, the goal is to get the best possible dollar amount for your domain without giving away too much information about yourself or your motivations for wanting to sell.
A good place to start is by asking for 10-20% more than your bottom-line price.
From there, it’s all about reading the buyer and responding accordingly. If they seem interested but are lowballing you, hold firm and don’t be afraid to counter their offer.
However, if they seem like they’re ready to walk away, be flexible and consider accepting their offer.
If you don’t feel confident in going at it alone, consider using a domain broker. A domain name broker is a professional who specializes in helping those buy or sell domain names.
If you are thinking of placing your domain name up for sale, a broker can help you find potential prospects to buy and negotiate a fair price.
A broker can also give you valuable insights into the value of your domain name and the best way to market it to people looking to purchase. If you are interested in purchasing a domain name, a broker can help you find the right name for your business and negotiate a fair price with the seller.
Ultimately, using a domain name broker can help simplify the process of buying or selling a domain name and ensure that you get the best possible deal.
Complete the Transaction and Transfer the Domain Name
Once you have received payment from the buyer, the final step is to complete the deal and transfer the domain name. If there is a significant amount of money to be paid for the sale, I would strongly recommend using an escrow service as this will protect you and the seller.
Regardless, the process of transferring a domain name can differ depending on which registrar you are using, but typically it involves changing the DNS settings and updating the WHOIS information.
But before you can do that, you will need to unlock your domain name. This can usually be done in the settings of your domain registrar (the company you purchased the domain from). Once your domain is unlocked, you will need to generate an authorization code.
This will be used by the new owner to verify that they are the rightful owner of the domain. The process for generating an authorization code varies depending on your registrar, but instructions can generally be found in their help center or customer support section.
Once you have done this, you will need to give it to the new owner along with your username and password for your registrar account. With this information, they should be able to log in and begin the process of transferring the domain name to their own account.
Depending on your registrar, the process for transferring a domain name may vary slightly. However, most registrars will walk you through the process step-by-step so that it’s easy to follow along.
Once the transfer is complete, you’ll receive a confirmation email from your registrar letting you know that the process is complete. And that’s it! You’ve now successfully transferred your domain name to another buyer.
And that’s it! Your domain name has been sold.
Now that you know the ins and outs, you can be sure to get the best possible price for your domains. Follow these seven steps and you’ll be a pro in no time.
Final Thoughts
If you are looking to sell your domain names, following these seven steps can help make the process go as smoothly as possible. Do your research, set a fair price, create an enticing listing, and use an escrow service to ensure both sides are protected. Respond quickly to offers and close the sale!
Have you ever sold a domain name? What tips would you add to this list? Let me know in the comments below!
FAQs
Is Selling Domain Names Profitable?
It can be. Many people have made a lot of money doing this. However, there are a few things to keep in mind when it comes to selling a domain name:
1. The best time to sell a domain name is when it’s been around for a few years and has built up some web traffic.
2. You will need to find a buyer who is interested in the specific domain name you ware looking to sell. There are many people who buy and sell domain names, so it shouldn’t be too difficult to find someone who is interested in your particular name.
3. You will also need to set a price that you are comfortable with. If you set the price too high, you may not be able to find a buyer. But if you set it too low, you won’t make much money off of the sale.
As you can see, getting into this niche market can be a great way to earn some extra cash. Just be sure to do your research and set a fair price.
How much can a Domain Name Sell for?
It depends on the domain name.
Some high-value domain names can sell for millions of dollars, while others might only be worth a few hundred dollars. The most important factor in determining a domain name’s value is its uniqueness and how well it matches a specific need or want.
How Fast do Domains Sell?
It depends on the domain. Some domains sell within minutes of being listed, while others may take weeks or even months. The most important factor is the quality and relevance of the domain to individuals want to buy.
How can I Sell my Domain for Free?
There are a few ways to sell your domain for free. One way is to post an ad on a website like Flippa. Another way is to list your domain on a website like Sedo, which is a marketplace to do your buying and selling of domain names. Finally, you could also try contacting a professional broker, who will help you find a buyer for your domain name.
2 thoughts on “7 Steps to Selling Domain Names Like a Pro”
Very good and complete overview over domain brokerage. The only point is that you should use automatic valuation services such as Estibot with caution. The valuations between such automatic valuation services can differ significantly and they often do not consider relevant parameters such as competition and profit margins in the according industry and many others. Often soft factors such as who owns a domain will finally also have an impact on the sales price even though this shouldn’t have an impact in a “perfect world”.
Thanks for the feedback! I will certainly do a little more research and update the post to make it more relevant.