Premium Domain names are domains that are already registered, but are available for sale at a higher price. Sometimes it will be an individual selling the domain, or it could be the domain registry (Like Donuts Inc. or Radix) selling their top quality inventory at a higher price point. These domains can be priced anywhere from a couple extra bucks to millions, depending on the domain name, the level of interest, or the amount of traffic it organically receives.
Parking the Domain Name: When you park a domain name, every time someone enters IHateCold(.com) into their web browsers, a page with a few ads and sales info is shown. So you’re letting the visitor know that the domain is for sale and you make a few cents on the ads displayed for views. There are several domain parking services for when their buying and selling domain names, but I’ll go into that in another post.
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.
Domain names have been on sale ever since the Internet revolution began during the 90s. Just because some entrepreneurs had the foresight to buy profitable domains before the rest of the world caught up with the trend, doesn’t make them domain hoarders. Domain names are just like the real estate sold in the off-line world. Anyone is free to buy/sell as many properties as one likes if his/her means permit.
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.

They see a domain’s price tag and they can instantly tell whether it’s under or overvalued. This is probably the most important skill one should have in this industry. Neil Patel has an interesting related quote: “The most important thing to remember when buying sites is that you always make money on the buy, never the sell.” In order to successfully do this, you must be able to spot undervalued domains. This is what will ultimately translate for you into a handsome profit margin when you get the opportunity to resell the domain for its “real value”.
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