Length: This is pretty self-explanatory. Generally the shorter the domain name, the more valuable it is. This difference in value decreases exponentially as the name gets longer, though. For instance, the difference in price between 3 and 4 letter domains are significant, while the price difference between a 7 and 8 letter domain would usually be much less significant.
Namejet is a domain clearing house (at least that is my term for it).  What happens is that people let their domain names expire everyday.  Some people just don’t need their domain anymore, some people forget to renew it, some people die, I mean there can be hundreds of reasons why a domain will not be renewed.  What the domain registrars want to do is cash in on the domain that someone forgot to renew, so they offer that domain to Namejet to auction it to the general public.  Think of it like a storage unit, someone doesn’t make their payment and the storage company hires an auctioneer to come and auction the storage unit to the general public.  Namejet is doing this but for domain names.  The bid for each domain starts at $69.  What I LOVE about Namejet is the process…  they let you search through the domains that are coming up for auction 30 days in advance.  Whoever places a $69 bid on a domain will be entered into an auction when the 30 days runs out with everyone else who placed a bid.  If you are the only bidder than you get the domain for $69.  If there are 10 other bidders than there is a closed auction, meaning only you 10 guys can bid now against each other in a 3 day auction with the highest bidder taking the domain when the clock strikes zero.  I love this because let’s say there is a great domain and it flies under the radar.  If it goes to auction with only 3 or 5 or 7 bidders my chances of winning this domain at a very low price are great.  I’ve won domains for $100 which I was able to flip for $2,000.  I won a domain for $2,500 which I flipped within 4 months  for $7,500.  I won a domain for $1,000 which I’ve turned down $5,000 offers on because I think I can get $10,000 for it.  The key is to not overpay in order to leave yourself plenty of room to turn a profit when you flip the domain.

When you see one that looks pretty good you can just click on the bid button and you’ll be taken to Go Daddy Auctions which shows some more information about the domain bidding process, how many people have bid, the traffic potential per month, the price which is now $12. How much time is left? You can make a bid. It’s based on the link profile and it’s relevancy, authority and your budget. This domain looks like a good bet for you.
Link popularity: the link popularity is a parameter that is used to quantitatively evaluate incoming links to a website. This is measured depending on the number of links to a domain according to the mantra 'the more incoming links, the more important the site'. Link popularity is generally determined by the PageRank algorithm. The PageRank only plays a minor role in determining the domain’s relevance.
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.

Current Craze: When PokémonGo was HUGE last year, my domain flipping friends (Matt of Handshakin.com is one) were all about buying domains like PokeStopNearMe(.com) and other related domains associated with the PokémonGo craziness. It’s like the day trading of the domain world. You’re buying domains during the hype and hope to sell them for a higher price quickly before the hype fades.

Many top-level domains, or TLDs, out there have the potential of being sold at top dollar rates. Gone are the days when domain names with ‘.COM’, ‘.ORG’ and ‘.NET’ were known as top-level domains. Newer domain names with ‘.US’ and ‘.IO’ are also worth their weight in gold. All you have to do is conduct thorough research in order to find all the good domain names you can park.
Some people in the advertising and marketing industry have expressed fear that considering the way social networking portals are taking over our lives, businesses will soon operate from these websites and stop building their own websites altogether. Although such fear is justified to a certain extent, if looked at thoughtfully, the benefits offered by an independently hosted and controlled website far outweigh the promise held by social profiles.
We do not only have Expired Domains, but you can also find lists of Deleted Domains for a lot of TLDs. Deleted Domains or Dropped Domains are available for registration and can be picked up for just the normal regfee at your preferred domain registrar! All Domains have the typical SEO relevant data, like Number of Backlinks, Archive.org Birth Date and a lot more.
However, I'd argue that most people in the business really struggle as they don't understand what makes a good domain name and what's a bad domain name. While I do not work in this field full-time, I can say that I can make a living of it, but it's probably because I don't ask for absurd prices (e.g. randomword247.com domain name for $8000 is just unrealistic and won't happen) and therefore can sell domains easier. 
Above you provided great information about buying and selling domain names. I have been to many blogs about the same and I have read the people make millions just by selling domain names. It's a process that one needs to learn with time and can give a good earning by reselling the domain name. The business is fruitful but one needs to read, understand the value of a domain name. Buying every domain name is a waste of money. One must see the future potential growth for that particular domain.
This is a little bit on the grey hat/black hat side of the spectrum. But the fact is building a blog network with expired domains flat out works. The only issue is getting those cream of the crop domains without going broke. This video will walk you through tested strategies and techniques you can use to find powerful, yet affordable, expired domains.
Once you decide to sell a domain name, it is important to find the best market to sell it. The best way to sell a domain name is to approach buyers secretly. If you know someone who deals with domain names, it is recommended to contact him without going through the middleman. Chances are that the seller will make more profit, as he will not have to pay the middleman.
The great thing about this is that it’s kind of like a metasearch engine for all the places that you can find expired domains around the web. First, let’s look at deleted domains. Okay? To do that, you go click on the deleted domains button here and then click on any top level domain that you want to get. I prefer .com because it’s obviously the most common top level domain.
You can still buy two word or three word domain names incorporating your target keywords. Moreover, there are millions of domain names out there which haven’t been used at all and are bound to expire soon. All such domains keep coming back to the domain marketplace. What more, there are useful tools available to research and filter through such expired domains.

Domain names expire when someone decides to stop renewing it. They may not be available to register immediately. We update the search index every night, so some names may already be renewed or re-registered. Some may become available in a few days. Some registrars, like GoDaddy, will let you buy a name that one of their own customers expire immediately. When you find a name you like, just click on it to try backordering the name!

Yes! Selling domain is an emerging trade and no wonder if it can develop into an exchange. www.DomainX.org has been initiated with this view. There are some good ideas in the comments regarding which names to buy and how to grow their value. However one must not forget that it also involves a recurring cost (annual renewal) and keeping many of them might become difficult if you are not really selling at least a few to cover it. Enjoy free listing at DomainX.org.
So what are some strategies to finding great domains to flip?  Well, the first is to find quality domains.  There are some sights that publish a daily list of good upcoming Namejet auctions like here: http://www.tld.org .  This is an easy way without having to search to find some great upcoming auctions to bid on.  If you have the time you can search Namejet yourself.  The key is to making money by flipping domains is to find domains that other people will want.  If the 30 day window period just started on a domain (for this example let’s say it was Anticareer.com) you could use Google to search for ‘anticareer’ and ‘anti career’ and see if you can find people who own sites that may be interested in this domain.  Email them and ask them if they’d have an interest in purchasing the domain Anticareer.com.  If you get some bites you can then go and bid on the domain and if you win it you can flip it right away.  Once you get some experience it will be easy for you to spot the domain names which you can quickly and easily flip and you’ll also develop a good feel for what price you should pay to make yourself the amount of profit you want to make.
Adding domains to our Premium Listings on our website before you sell will give them more exposure to the community. We’ll offer an appraisal for your domain to give you an estimated selling price, and you can adjust that price at any time. We also offer a comprehensive breakdown of our commission rates for all premium listings, so you can easily understand the process.
I did this last month, snagged a great domain that no one else found and got it for $69 because I waited until the last moment to place my pre-bid. Flipped it within a week for a little over $1,000. And probably could have gotten more if I sat back and waited 6-12 months, but a bird in the hand… (plus I like to keep turning over inventory and maintaining cash flow).
Hey, the possibilities are endless when it comes to domain flipping so do not think that all profitable domain names are already taken. At this time, almost 90 million .COM domains have been registered, so people tend to think that there are not many good domains left. That is not true since you still have the opportunity to incorporate two or three word target keywords.
Think of ways that the domains you buy would be a valuable asset to the buyer. Picture someone who would benefit from buying the domain in a space you are very familiar with. If this was you and someone was trying to sell you this name, would it be beneficial for you to own? Be honest. If so, why? If not, why? Use those answers to refine your search for names.
A rule of thumb that I follow is when I purchase a domain name I have to believe that I can flip it for a 100% profit.  So if I spend $500 on a domain I need to feel like I can sell it for no less than $1,000.  This way, even if I’m wrong in my estimation I still have some room to still turn a profit.  And if worse case comes to worse case I’ve sold domains before for a $0 profit (it happens even to the best of us).
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.
There are several types of domain names to avoid. One is intentional misspellings, as these make it less likely someone will search for them. You also want to avoid names with extra symbols like hyphens, or with added prefixes and suffixes like "e" or "my." Outside of a few notable exceptions with very strong brands (like eBay), those additions can only hurt the value.[3]

Chris takes us through his stages of domain investing: educating himself, antique picking previously owned dropped domains, buying brandable expired domains and his first 2 profitable flips. We touch on the tough topics of frontrunning and GoDaddy expired auction changes, plus the 4 letter word of domainers, CALL- with Chris’ current 100% success rate on phone calls!
I have some pot related ones I've purchased recently that deal with the manufacturing of hemp like hempmfr.com, hempmoulding.com, hemp-textiles.com, hempecofuel.com etc.  Some of the older domains I've been sitting on are ones like internetpot.com, califunk.com, cafunk.com, caedibles.com, 1tokewonder.com, govherb.com, grasspeddlers.com, pot-megastore.com, usgov420.com etc.  Another interesting recent on I've purchased is Dogparkdates.com and dogpark-dating.com. Do any of these seem valuable in your eyes?
Sir I am a newbie and a lot interested in doing this business but I don’t know fron where and how to start it. How to purchase where I have to pay and how I have to pay all sort of questions are there in my mind. So sir if you could email me the details then it would be of great help. Its been months searching but I hadn’t purchased any domain yet.
Hi guys, just a thought, you do not need to build traffic to the domain yourself, you can always buy expired domains, best to subscribe to a paid service like dropping.com (so you are the first to know) or a free one, expireddomains.net and in this way, you can get old domains that have traffic. You could use these domains for parking, getting advertising income or even to sell. I have noticed, that domains that were not hot in the past, can still be hot now, just use Google Trends to type in the keyword, and you will see its future projections. 
Hi Kulwant, these are great tips as usual. I particularly like the way to tell us to check the google pagerank in case the domain has been banned – that could lower the usefulness of the domain quite a bit. One thing though, don’t you think that buying domains is sometimes immoral? Like sometimes you accidentally buy a domain of somebody elses website who forgot to renew.
Buying a trademarked domain name could get you into a lot of hot water. Best case scenario is for the trademark holder to force you into handing the domain over and call it a day. Worst case scenario is you get into a legal battle and end up spending an arm and a leg. This is why it might be a good idea to use the United States Patent and Trademark Office’s (USPTO) website to check for trademarks if you’re unsure about a domain name.
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