Earning Money with Domain Names Trading

Author: |
buy domain names through Yourhosting

Web addresses, or domain names, can be worth a lot of money .

Because with a catchy and easy to remember website url a lot of money can be made.

On the other hand, registering it is very cheap, creating a .nl for the first time will only cost you 1 US dollar ...

It is not without reason that considerable trade has arisen here.

We explain how you too can make a profit in this world using 3 simple steps.

In this article:

1. Buy domain names

To be able to trade you have to buy it first, logically. There are, however, a number of things to pay attention to if you are going to do this to increase your chance of success.

Good names

It all starts with buying the right names. You want a name that is very interested so that you can resell it for a lot of money. That's the whole idea. But what are good names? We have some tips for that:

In fact, you have to turn it around: why would buyers want to pay you a lot of money for a domain? Because they are going to put a website on it, of course. And use that as a sales channel for their products or services. It must be short, easy to remember and also good for SEO, i.e. that the site does well in search engines:

  1. Shorter domain names are better than longer names.
  2. Good to remember are generic words, such as hotels.com orvakantie.nl
  3. Then again words that are commercially interesting, not strange words or swear words
  4. Preferably no other characters than letters, so for example a domain with dashes in it is much less interesting
  5. Certainly words or word combinations that are frequently searched for in Google yield a lot.
  6. Be careful with brand names, it may be that due to patents or image rights a company may not have a domain yet but can claim it at no cost. You don't want to infringe on that.

Good extensions

Just a good name does not mean that your domain is a goldmine. The extension is perhaps even more important! That is the last bit of the URL. In the Netherlands .nl is the most popular and .com is also doing well. .net is becoming increasingly popular, as are .info and .shop .store .eu .org .app & .nu

The difference between the exact same name but with a different extension can be a factor of a thousand so pay attention to which one you go for.

Buy new domain names

The easiest and cheapest is to create new domains yourself or to pick up domains that are currently not occupied by anyone. That is a matter of checking what is available, preferably via Yourhosting, where you can already enter a .nl domain for 1 US dollar.

Pay quickly with iDeal and in a few minutes the domain is yours within a few minutes and as long as you pay the bill every year, that will also remain the case, no one can intervene anymore.

By the way, you will see that a lot of names have already been sold and there are almost no new names to be invented without getting very creative. And that is often not good for the value. So the trick here is to be innovative and, for example, to respond to new words and concepts.

For example, when the term Sim Only suddenly became known, there was a run on domains such as simonly.nl and comparesimonly.nl, which still makes a lot of money. And every year new words are added to the dictionary ...

There are people who have parked thousands of domains as they are nicely called, in the hope that someday a buyer will pass by who will deposit a fortune. There are even people who collect domains ...

Buy existing domains or sites

If a domain is not available to register, then there is still no man overboard. There are 3 options:

1) Someone has registered the domain but is not doing anything with it (yet) and might want to sell it. Just send a message.

2) The domain is owned by a merchant who of course wants to get rid of it for a good price, then it is important to see if you can make a good deal. Often you will be directly forwarded from the domain to an auction site or there is already an asking price.

3) There is an existing site on the domain. Depending on the condition of that site, this can affect the price, but also the difficulty in making a sale.

If you cannot find out who owns a domain, you can find out through a Whois register as they are nowadays less and less filled. In the Netherlands you can also do this via SIDN.nl and in Belgium via DNS.be

Determine value & negotiate

The question, however, is when you come into a conversation with the owner of a domain, what you are willing to pay for it. After all, you want to be able to make a profit, so there must be enough margin left. But then you have to find out what the market value of the name is.

To start with, you can take a look at what comparable websites have been sold for. Take a look at auction sites where domains are already offered. For example Sedo.com or Sitedeals.nl

The smart first step in negotiating is to have the seller be the first to quote a price. Then you immediately have an advantage, because if you call it a much too low price, you can strike immediately. And so you can be sure that you don't start too high in the tree yourself.

Do you want to buy sites yourself from auctions? Then you really have to know very well what you are doing because you will be dealing with seasoned traders there . Especially as a beginner we do not recommend this.

Some cool examples of how much a domain can be worth, these are the most expensive sales ever:

  • Insure.com $ 36,000,000
  • Vacationrentals.com $ 35,000,000
  • Privatejet.com $ 30,000,000
  • 360.com $ 17,000,000
  • Sex.com $ 12,000,000
  • Fund.com $ 10,000,000
  • Casino.com $ 5,500,000

And a little closer to home the most expensive domains in the Netherlands (without an existing website):

  • Vakantie.nl $ 2,500,000
  • Voetbal.nl $ 500,000
  • Seks.nl $ 200,000
  • Schoenen.nl $ 120,000
  • NPO.nl $ 100,000
  • Relatiedeschenken.nl $ 72,000
  • Kinderwagens.nl $ 70,000

2. Increase value

Getting a domain is one thing, but getting the most out of it for sale is a whole other story.

Build a website

As soon as you get possession of a domain, this does not mean that you have to get rid of it as soon as possible. Just like investing in real estate where you renovate a home, you can also make a domain worth more by setting up a website.

Don't have to cost anything, most domain registrations often come with a free website tool. It does ensure that a domain starts to 'live'. In other words, people will visit the site and that ensures that the value increases.

Provide backlinks

There will be people who will link to the website, provided there is good content of course. But this is an important part of SEO and entrepreneurs are happy to buy sites that already point to links because then they can get higher in search engines like Google.

Links with the brand name pointing to the different pages of a website are especially valuable. So we like to have links where the text also mentions 'geldgenius' and not only links to our homepage but also to all our great articles!

Have a well-known brand name

As soon as a brand is better known, it will yield more. For example, the social network site Hyves was bought for almost 44 million US dollars in 2010, while it was no longer worth anything within a few years. Facebook became more and more popular. Now it is a gaming platform.

So you can already think about this when choosing a name, but you can also invest in the reputation of your brand. This way you can create social media accounts so that people can follow them. This creates more Goodwill as it is nicely called.

Buy similar variants as well

If you have a good domain name, it can be smart to buy obvious variations with, for example, the different extensions. For example, others can no longer buy it smartly to circumvent your right.

Create turnover

Now a domain has a value, but a website that is on it can have that too, especially if it generates revenue. Read more in our article making money with a website what the options are for this.

The advantage that you have is that you no longer only sell a name and domain whose value is purely speculative, but you can easily demand x 18 months on top of that price to buy off the loss of income.

Moreover, it ensures that you already earn money while you wait for a good buyer, win win! People then no longer only buy a (well-known) website, but also one with proven paying customers.

3. Sell domain names

There can be quite a lot of time between buying and selling. Once you are ready, there are a number of points for attention.

Bet high

Once you start selling, make sure to bet high. Not astronomically high so you scare everyone off in advance of course. But high enough because all kinds of arguments are always put forward left and right to keep the price down.

Just like negotiating, think when you sell your home. A buyer always bids too low, so you have to start a little higher in your offer than you really want, but it must be realistic otherwise you will get zero views.

A margin of 10 - 20% is fine. It is easy to work with. Also, make sure you agree on a minimum price for yourself and stick to it to protect yourself. Buyers often respect this.

Use an in-between party

Especially if you have an intermediary party, a minimal price is useful. They often sell by auction and then draw this as a boundary in the auction. If a bid does not exceed that limit, you do not have to sell.

Intermediate parties do of course cost a bit, but they also ensure that your domain comes to the attention of potential buyers. Moreover, they know the market and will be able to advise you on the price and your strategy in the negotiations.

Pay first, then transfer

A transfer of a domain and / or website goes through your hosting provider where the buyer must do the first step. He / she must have a code generated by his / her hosting provider for the move.

Make sure you work with good contracts anyway and also that you first receive money before transferring the site or domain, because getting it back is difficult and can take a long time with many lawsuits.