Sometimes people purchase domains that they plan to build a website on or sell in the future, but it just doesn’t end up happening. If an individual decides that it is no longer worth the yearly investment of keeping the domain in their account, they may choose to let it expire. Or, someone might just forget to renew the domain before the expiration date. If this happens, it’s a great chance for other domain investors to score rare domain names that are pending delete. Spending time perusing the list of recently dropped domains can be a worthwhile way to find high quality domains.

Good point. Is the amount of work that went into getting a successful sale worth a $400 profit? Keep in mind, this is providing speculative numbers for the sake of debate. The real world hours invested in gaining position or page rank, and time a agency would sit on a domain before a sale would be much higher. We interviewed a few agencies that practiced this, not only those that supported our theory.
A suspiciously high number of backlinks from some related niche websites that aren’t too great in quality. In my opinion, this could be an indicator that the domain name was using a Private Blog Network (PBN) service or their own PBN to boost their authority…this blackhat tactic can work, but it places your domain name at risk and the PBN owner could pull backlinks at any time.
Expired domains are especially attractive due to key SEO factors that are primarily associated with an existing backlink profile. If you are considering buying an expired domain, you can determine the quality of it by looking at the inbound links. When it comes to assessing the value of an expired domain relevant keywords contained in the second-level domain, a possible reference to products, brands, or services are all useful.
That said, my recommended budget for beginners would be $500+. Using this budget you could buy a bunch of high-potential $10 domain names, expired/dropped domain names or a mix of both. It’s very important to invest only what you can afford to lose and treat this as a side hustle till you get the momentum going. As you gain experience, industry expertise and some sales under your belt, you can then consider slowly growing your business into a full-time gig.
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