All very relevant points for anyone wanting to sell a domain name. Sometimes it is the basic points that we need to be reminded of in a transaction like this. What is the potential of selling a .com domain that has a relevant search term to a particular industry, but hasn’t been used on a website yet? So it is a good search term but no current traffic.

Let’s just say for example we wanted this site, crystalgiftsworld.com. It looked good based on our analysis and we’d head over to Snap Names, Nameja is another one and what these service do is they have special technology on their site that allows them to try  to register a domain on your behalf over and over again. Okay? If you tried to do that your IP would get banned, but they have some system where they know how to do it just enough to get the domain, but not enough to get blacklisted.
I've seen some people comment about losing the link value of domains that have expired and picked up, but what about non-expired domains?  Let's say a competitor is going out of business and they still have a year or two left, and we buy their domain and site.  Is there a risk changing registrant info and registrars, even if I keep their site up and mostly the same as before?  I was under the impression that I'd want to keep it under their name so as not to hit the uber-reset button on the domain's inbound link value.
Domain flipping is the art of buying a good domain name at a wholesale price and successfully selling it at a resale price and making a profit. I’ve been helping clients flip domain names for over 10 years. The skills needed to be successful is some working capital, knowledge of domain valuations and a good information flow from a trustworthy domain broker who knows the landscape and can help source you the best deals.
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.
All very relevant points for anyone wanting to sell a domain name. Sometimes it is the basic points that we need to be reminded of in a transaction like this. What is the potential of selling a .com domain that has a relevant search term to a particular industry, but hasn’t been used on a website yet? So it is a good search term but no current traffic.
Most popular auctions with expiring domains are at godaddy, namejet, snapnames. Search for expired domains name its very easy if you have domains list. With a bit luck, you can drop good one with PR5 cheaper like $200, just need to know which domain have not fake pr. List of domains are not free, but updated dailly with aprox. 50.000 new expiring domain names.
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.
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).

There are currently two main types of domain speculators: those that buy domains, build sites around them, and then flip the domain and accompanying website, and then there are those that buy and sell domain names without web sites attached. While both can be very lucrative businesses, the second type is much easier for novices to learn, and as such, shall be the topic of discussion for this article. 
The easiest and least time consuming option is to 301 redirect the old domain to your existing site. This tactic obviously works best if both sites are in the same sector and are targeting the same keywords; otherwise, if you have a pet supply site and you buy an old Texas Hold 'Em poker site, a redirect probably might raise some eyebrows among the search engines. If, however, your site is brandnamepets.com and you buy onlinepetsupply.com and 301 redirect the domain over, you're inheriting a lot of topical and appropriate links.

As you can see just within expired domains they have over two million deleted .com domains. Now, this is obviously overwhelming if you’re trying to look for domains. So, you should use a few filters to make the search process a lot easier. To do that, click on the search filter button. Down here I like to click on the Only With A DMAS Entry because that just filters out sites that are really spammy. For sites that that have been in DMAS ever, it means that the site had to be of some quality.
Be careful! When searching for domains, it might be tempting to, for instance, buy mcdonalds.net (if it were available) and then try to sell it to McDonald's. The logic here would be that they own the .com and wouldn’t want anyone to own the .net and use their name, right? Also, it’s a big name so there’s gotta be a biiiiiiig payday comin’, RIGHT? Wrong, and wrong.
If you buy a domain from a 3rd party, the backlinks are valuable.  I always wait a few months before redirecting, so just set up a quick minisite until two page rank updates have passed and then go ahead and 301 redirect.  However, it seems that you'll get the link juice from the back links, the anchor text is ignored by Google.   Buying a domain at Godaddy TDName expired auctions, seem to not count as a dropped domain if you immediately set up a mini-site.
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.
If you buy keyword specific domains, you're really buying the type in traffic.  I use the URL builder and redirect through that URL so you can see how much traffic your getting from the keyword domain.  There seems to be no rythme or reason to what keyword domains deliver traffic and what don't.  By tracking traffic with the Google URL builder you get a feel for what names are giving you traffic and which are not. ie. the plural, the singular, two words, three words, the possessive, etc.

Your domain name registrar may provide you with a free one-page Website tool, which you can use to create a “this domain is for sale” landing page. Alternatively, you can create a single page (perhaps a hidden page hanging off one of your existing websites) that indicates that your domain names are for sale. You can then forward all of your domain names that are for sale to that one page.

I have an interesting twist on how I have done it in the past. I will buy a domain and use it as a development domain for blog posts and things of that nature. Then over time it will gain DA and PR. Then I will sell it off and buy another development domain and start the process over. Not quite the process you mentioned, but it works. People will link to the development site to show things off as well  sometimes, so that helps.
It’s also not so easy to manually re-register. This is due to backorder providers which are paid to keep an eye on expiring domains over a certain period of time and then register them for the customer as soon as they become available. Promising expired domains are therefore usually sold before they have a chance to be put back on the registry menu for the public to look through.
Please keep in mind that domain flipping isn’t child’s play. As much as you may want, it isn’t easy to buy and sell domain names for huge profits without putting in a good amount of time and effort. Although there’s nothing wrong in aspiring for at least one big deal per month, be aware that sometimes it takes months and months to sell just a single domain name.
While numbers like the ones seen above are impressive, most domains sell for significantly less extravagant prices and are generally in the two or three-digit range. Not long ago, those who were able to secure general terms (like icecream.com or pizza.com) not protected by trademark rights often found themselves sitting on virtual gold mines. The glory days of this boom have long since passed, and those looking for a profit in today’s market need a keen sense for coming trends.

Everybody going to start using old domains should also know how to get them, I'm going to post soon article about it on seomoz as there are several ways starting from online rankings and lists up to dedicated seo tools that you can run on your computer and get precise and actual data on demand for any domains lists. Anybody intersting in such tools please visit our website: http://en.exdomain.eu/
I remember the glory days of the Internet where people did make a ton of money buying domain names. Until I came across this post I actually didn't even realize that people actually still thought they could.make.a.lot of money by doing this. I have some domains that people would be interested in buying and I get contacted about them but mostly it is for people wanting to purchase them for like $1200. And for that price I would rather just hang on to the domain name. I also get contacted by a lot of people offering to sell me complimentary domain names at what I would call ridiculous premiums. The knew google is all about branding. I would consider paying for a domain name that has a great brand attached to it but I could care less about most keyword rich domain names. Of course there are always exceptions.
Content setup: If your domain has potential to attract good search engine traffic, you might want to set up some content to help facilitate that. If this helps your domain do better in the search engine rankings then it’s a big win regardless of whether you choose to flip the domain only or flip the domain with the content as a “website”. The SEO value will be helpful either way.
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