Once you have a name in mind, how do you know if the price is fair? I like to use namebio.com to compare the domain I’m thinking about buying with similar domains that have sold. You can enter the keyword and also use some advanced search features to see a list of names similar to yours, what they actually sold for, and when they sold. You can also research current domain sales on venues like GoDaddy Auctions and Afternic. Finally, Ron Jackson issues a weekly report on DN Journal that covers the top public sales of the week. You can use all these resources to help you price your domains correctly.
If your domain name is related to a particular niche, then you may find success by advertising in forums that are related to that niche. Simply placing a link in the signature of your posts can tremendously speed up the selling process. While it may be possible to find prospective webmasters on niche-specific forums, it is generally better to advertise on webmaster forums, where there is a high volume of potential customers.
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If you buy a dropped domain from Snap or Namejet, the backlinks seem to be worthless for SEO. They are valuable for traffic if it's targeted to your site. Go ahead and 301 redirect into your site because it's the traffic from the back links that is worth something. I use the Google URL builder to redirect these names so you can see the domain the traffic is coming from.
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).
Use the advanced search option to quickly hone in on the type of names you are interested in. You can narrow the results by price, top-level domain (i.e, .com, .net, .org, .club, etc.), keyword, and many more filters. Using this feature will help you quickly sort through the millions of domains on the aftermarket and find the domain names that best fit your end goals.
The first thing you need to do is signup at Namejet in order to get your account (signup is free). You can then use their search functionality to sort through all the upcoming domains for auction. Place bids for $69 on the ones you want to go to auction for. If you bid on 100 different domains for $69 each, and there is 50 bidders for each auction you need to understand you aren’t going to owe any money, you are not committing $6,900 to Namejet. By entering that $69 you are getting an entry into the live bidding when the 30 days expire. Only if you are the ONLY bidder on a domain would you automatically win the domain and owe $69 to Namejet.
In theory, you could technically acquire a domain for $10,000 and be able to sell it for $100,000. You could also acquire a domain for $10 and be able to sell it for $100,000, $10,000… or $100, you get the picture. Because of this, it’s hard to recommend a perfect starting budget because your strategy, experience, and the pace at which you learn will hugely affect your buying and selling decisions.