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This is in response to a question a fellow Moz community member once asked in Q&A, and we thought that it deserved its own article. Buying up expired domains, or purchasing keyword-driven domains is becoming more popular amongst the internet "get rich quick" crowd. The big question is: Can you make a profit by buying and selling domain names? If you get the right one, sure. If you plan on repeating the process over and over, probably not.
Using the keyword search feature you’d also be able to familiarize yourself with how much domains typically cost on average in a certain industry or niche. Even better, they have an addictive little app called “The Domain Game” available for iOS and Android. They basically give you a domain and you try to guess whether it sold for three, four, five or six figures. You get points for each correct answer and lose points for incorrect ones. You do this for a while and you start to see patterns. Your brain starts connecting the dots and you get better it. Now you’re ready to go out there and scout some domains!
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Acquiring what you believe may be a valuable domain name is the easiest part of the equation. Finding the right buyer is much more difficult. Using auction sites and forums is perhaps the best way to find qualified buyers that are interested in your domain, and using auctions will take some of the stress away from establishing the value of a domain name yourself.
Premium Domains are domains that have already been registered by someone else but are now being resold for a premium rate. This means anyone can buy premium domains as they are being sold on the open market. At 123 Reg, we have a variety of fantastic premium domains for sale that you can now register. Buying a Premium Domain is the best way to secure popular domains that you would otherwise be unable to register. This means you can finally buy domains that you have had your eye on for a while but have previously not been able to as someone else has already registered them.
Domains are nonmaterial goods. When sold, the only transaction taking place is transfer of domain rights from one user to another. Barring any form of copyright or trademark violation, virtually any domain name can be bought or sold. Generic domain names, such as car.com or computer.com, are not legally protected and can therefore theoretically be reserved by anyone.
It's ranking high today! What could be the problem? NO. JUST STOP. Unless you know the entire history of a domain, you may be setting yourself up for failure before you begin. SEOs (and business owners) use a variety of tactics to get a site ranking high in search results. For some of these methods, we'll just call them "questionable". These methods could include everything from buying links, overuse of directory submissions (non-industry related), duplicate listings, poor quality backlinks, and guest blog comments.
For the following TLDs you can now find a expired/deleted domain list. .gi, .gl, .gy, .hn, .ht, .ky, .mu, .om, .pf, .qa, .rw, .sb, .sm, .sn, .st, .sx, .tc, .tl, .ug, .uy They also show up in the Deleted Domains (last 7 days) list and in the Domain Name Search, however they are not in the pending delete list! I do not have a working droplist for them yet, so that is why they are not released in the pending delete list yet.
Now it’s time to transfer the domain name. Every site has its own process. Generally, the domain-selling sites require sellers to submit the authorisation code, which will initiate the transfer process. Once the transfer is completed, the seller can transfer funds from the escrow account to his personal account. Do check for the minimum number of days the amount must stay in the escrow account before the transaction can be completed.
There is NO accurate way to predict the sale of digital assets – if someone wants it, they’ll buy it. For example, those wasting their money on useless .com’s (LLLL’s that have no rhyme or reason) will spend 3x more time and money optimizing their useless name as someone that buys ANY keyword loaded domain (regardless if a TLD or new one). But these individuals who are spending thousands on domains will eventually get stuck with these domains in favor of (you guessed it) the oft forgotten yet highly useful 1-3 keyword domains. Why? Study Google’s algorithm as I have for over a decade, and you’ll figure it out.
Unfortunately, you probably won't like my tips. You need to look for quality domains at a good price and be willing to hold on to them to get your money back or know when you've invested wrong and get rid of them. Quality is in the eye of the holder, and believe me, I've looked at plenty of domain portfolios that the owner just knew were million dollar domains but in my opinion, they'd be hard pressed to get anyone to take them off their hands for just the registration costs. You have to figure that most of the best .com domains were registered in the 90's, and those are the ones you typically see the 6-7+ figure sale prices on. I'm not saying there isn't money to be made because there is. But it does take time, research and money, and maybe in some cases a little bit of luck. If you're thinking of getting into the industry, I recommend digging into the resources provided by Michael Cyger on http://domainsherpa.com and from there, moving to some of the other big blogs such as TheDomains.com or
Dictionary Word/Pronounceable/Memorable/Brandable: A dictionary word domain name is very valuable. Of course, the more popular and widely used the word is, the better. For example, “marketing.com”, “cars.com” and “hotels.com” are 7-8 figure domain names. Even if a domain name isn’t a dictionary word, being pronounceable and/or memorable and/or brandable are all big pluses that add to its value.