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.
Something wise my father once told me "Something is only worth how much someone is willing to pay for it." This small seemingly unimportant statement has guided me in many selling and purchasing decisions in my life. Sometimes, it makes the reality all too apparent. So, is buying a domain with the intention of selling it a good idea? Let's break down the details, and talk to some people that actively pursue this method. Yeah, we know a guy.
Also with the domains, a name which can be cheap for one can be worth gold for the other. Permute the letters in your domain name and try contacting and eventually selling out to organizations that run under those names or contain the letters within. Companies would be keenly interested in buying out the domain names that matches the product's name. Hint : Look for companies on LinkedIn
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.
What is a domain? Despite this word being mentioned so frequently, it’s often unclear what the functions and structures of domains are. Knowing the hierarchical structure of the Domain Name System (DNS) is fundamental for anyone working in IT or in any online industry. We explain the difference between top-level, second-level, and third-level domains, and how you can benefit from subdomains that...

Hey, what’s up everybody. It’s Brian Dean from Quick Sprout. In this video, I’m going to show you how to buy affordable expired domains and how to evaluate the potential value that an expired domain could bring to your site. Now, expired domains is pretty gray hat, black hat type of thing because there’s basically two things you’re going to do in an expired domain.
Determine your domain's value. Before you start taking offers or listing your domain, take stock of its value so that you can come up with a good price. There are a lot factors to take into consideration when determining the value of a domain, so if you are unsure it may be wise to contact a company that performs these assessments. Some of the major factors include:

Since the Buyer pays Escrow.com and not the Seller, Escrow.com can withhold payment until we're satisfied the domain name has been transferred by the Seller. One of the ways Escrow.com does this is by checking the WHOIS database of the appropriate Registrar to make certain it properly reflects the new Buyer's name as the domain name Registrant. Once this has been verified, Escrow.com releases payment to the Seller.

When done right, the domain trade is an enterprise that lends itself to particularly lucrative deals. The tactic is simple: domain names are purchased with the prospect of reselling them for a wide profit margin. But the trick of this trade lies in securing domains that may later be valuable to well-endowed buyers, such as a large company. We have laid out all the important facts and terms on the topic, including some of the highest sale prices on record for a publicly traded .com domain.

When you backorder the domain it will say how long you have to place your bid in. Let’s say it says 25 days. If the domain is from one of Namejet’s partners then the auction will start in 2-3 days. If this is an expiring domain and Namejet has to catch it there is a chance they won’t catch it in which case it won’t go to auction at Namejet. If they do catch it then 2-3 days before the auction starts.
There is a misconception that good ‘.COM’ domain names are hard to find and so they are more expensive to buy. But once again, this statement holds no water. You can easily check out the ‘.COM’ domain names that are on sale at highly affordable prices. However, the only downside to flipping ‘.COM’ domain names is that you will have to discover them at different places like Flippa.com or private seller portfolios.
The domain name industry is quite similar to the real estate industry in a lot of aspects. There are end users, brokers, consultants and domain flippers or “domainers”. Domain flipping works similarly to buying a house, renovating it (or even sometimes just sitting on it) and then selling it again at a higher price point. The gist of it is: you’re purchasing a domain name and betting it’s worth (or will be worth) more than you paid for it. If you’re right, you get a nice paycheck and move on. Those who make a living out of this just rinse, repeat, and scale.