Can you make money from buying and selling domain names?

Domain names are gradually becoming hot cakes in today’s techno-centric world. Do you have to be Google to begin making money online? The answer is No! Millions of people are generating a significant amount of income from investing in domain names. How? They simply buy, sell, hold or even develop domains as a way of increasing their overall worth. In fact, the domain name business is the internet’s real estate, replacing the land aspect with virtual property. Just like real estate, you can buy and sell domain names for a profit, generate more residual income, and develop them to boost their overall value.

Are you after planning to venture into this business? This article is for you. You need to know everything from how to buy and sell a domain name to how to get that profit. Follow me.

Building a Solid Domain Portfolio

Establishing a great quality domain portfolio requires time and can take several months or even years to get it done. In most cases, the secret to achieving this quickly is staying focused and being on the lookout for what domains may become valuable and popular in the future. It is not always true that buying an already high profile domain name will get you that great profit. Sometimes these domains are just simply exiting and sitting on them won’t raise their value. If you want to get in the domain name business and need a hand then Ignition Media can help with our domain registration service. Simply go to for details.

Ready to Ignite Your Website?

Generic Names

One of the best ways of selecting a great domain name is by choosing a word or words that describe your product or service. Do not tie yourself to that domain since you may wish to incorporate new and emerging products and services in the future.

Geographic Names

Names of countries and cities can be really great investments over time. Include the up and coming locations since you can sell them to website developers that are seeking to establish community portals and other businesses targeting the specific communities.

Business Names

Some generic names like a chiropractor or dentist are also great investments especially when they are used together with geographic names.

Timely Names

Other great domain name investments revolve around selecting a domain name that combines an event and the year that it’s expected to take place such as

Buying and Selling Domain Names

Now that you fully understand how to get that great domain name, let’s flip the coin over to buying and selling them for a profit.

Set Price

Begin by setting your price. This is the most preferred technique for most domain sellers that have established portfolios and years of experience and are slow at selling them.


Selling your domain names via an auction is the trick as far as selling high profile domains are concerned especially where there is a lot of interest. This is because they ideally result in a really awesome price that guarantees a profit.

Make an Offer

The last step is making an offer. You cannot afford to skip this step especially if your domain name falls in the group of specific niche domains that may not have a lot of interest or where potential buyers are excited about buying them but lack information regarding the true value of such domains.

Risks of Investing in Domains

They include liquidity, legality and subjectivity. Avoid faulty escrow payments and misleading appraisals. If you are potential buyer, consider these risks before investing.


Most bonds and stocks can be bought and easily sold via brokers. However, finding that specific buyer is always an issue to do with listing your sale for several months to years. In entirety, this means that potential investors should have an ability to stomach a loss as well as a lengthy time horizon. Once you have this in mind, you are good to go.


You can value your stocks by the discounted value of cash flows. Moreover, you can also value them according to their interest rates and coupon payments. Sometimes domains have subjective valuations that may be very difficult to pinpoint. Domain appraisers are a great move but watch out because most of them simply offer very lofty valuations that are impractical.


Buying and selling domain can be a sticky encounter from a legal point of view. Selecting names that are similar to trademarked names can result in lawsuits or court orders to forfeiture your domain name for absolutely free. Sometimes if you are not careful enough you might buy a stolen domain name before the real buyer realizes he/she is actually not the true owner.

The Bottom Line

Just like several other investments, the domain name business comes with its own benefits as well as risks. However, the benefits clearly outweigh the drawbacks. If you are a diligent investor that considers every factor, this domain name business can be a lucrative enough as to yield very high returns and therefore a unique way of diversifying your portfolio of investments. We offer a domain name registration service that is sure to work for you. Take this opportunity at the earliest.

We are in business because of you. We also pride ourselves in the quality of service that we offer to our clients. Importantly, take care and take one step at a time. Research where necessary and contact us for professional advice just to get you started. Good luck!

Related Topics