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.
Domain names are hot commodities in today's tech-centric world. The $16 million sale of 'insure.com' to Quinstreet in 2009 may have set the world record, but even lengthier domain names are routinely sold for hundreds of dollars every day. The result is a unique opportunity for investors to invest in domain names that can be sold for a profit in the future.
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.
Domain name sellers are advised to use Sedo.com to list their domain name. The real advantage with Sedo.com is the mandatory escrow service that comes with every transaction. The site charges the seller a commission of 15% per transaction or USD 50, whichever is higher, for domain names featured on the site. Sellers who do not list with Sedo.com but would like to use their escrow service will have to pay the minimum transaction fee of USD 50, or 3% of the transaction, whichever is higher.

GoDaddy’s domain auction space serves as a “marketplace” for buyers and sellers to get together and make deals. When a domain expires, it typically goes right back to the registry. If it’s a valuable domain name, however, registrars will try to sell it through auction, and buyers are always eager to capitalize on potential deals. Participating in a domain auction can be a nuanced business, so take a look at our Auctions FAQ page for more details on the process.

Many non-savvy internet users may not even be aware of the existence of other extensions. That said, because there are many new extensions popping up every now and then, you can often find amazing one word and 3-letter domain names with these new extensions that are otherwise almost impossible to find unregistered in the .com world. Additionally, these new extensions are becoming more and more familiar to users every day, hence it's almost certain that their value will continue to increase as time passes and wider adoption manifests. 
There comes a time in the life of every domain when its ownership must transfer hands. The reasons for selling a domain can vary greatly; maybe the company is no longer being in business, or the domain was bought in bulk and never used. If you're looking to offload your extra domains to make some spare cash, or if you're sitting on a premium domain name worth a goldmine, see Step 1 below to learn how to sell it.
Domain investors build a portfolio of valuable domain names, and attempt to sell them at a profit. Both Sedo and Afternic offer domain marketplaces (also known as Domain Listing Services, or DLS) for investors to advertise their domains to potential buyers. Once the seller and buyer agree, the aftermarket platforms then facilitate the purchase and transfer of the domain(s). As an Enom customer, you’re entitled to list your domains for sale on Sedo, Afternic, or both at the same time. Get started
One of the easiest ways to make money online is by buying something for a low price and selling it for a higher price.  It is even better when you don’t need to pickup or ship a product.  Today I’m going to talk about how to make money online by flipping domain names and how I personally have made tens of thousands of dollars in the past year doing this.

ExpiredDomains.net gathers all the information you need to find good Expired Domains that are Pending Delete and you can Backorder. Depending on the domain extension you can search through thousands of domains every day before they get released to the public and pick what you like. ExpiredDomains.net currently supports 449 TLDs. From the classic gTLDs like .com, .net, .org to Droplists for ccTLDs you can only find here and now we even support some of the best new gTLDs like .xyz and .club.
Results Per Page 50<>Order Byserie-stream.com1d, 1h | Current Bid : $29.99Viewrainbowlaw.com2d, 19h | Current Bid : $255.00Viewgrc.co1d, 4h | Current Bid : $111.00Viewlivepoints.com13h, 6m | Current Bid : $35.00Viewqqfo.com4d, 23h | Current Bid : $105.00Viewdb2teamblog.com1d, 1h | Current Bid : $23.99Viewsmallmediainitiative.com22h, 51m | Current Bid : $22.99Viewgogems.com1d, 9h | Current Bid : $36.50Viewutbb.com5d, 22h | Current Bid : $82.00Viewbabylon.co1d, 4h | Current Bid : $45.00Viewbankaim.com1d, 3h | Current Bid : $16.99Viewwands.net22h, 39m | Current Bid : $15.99View9000.co4h, 28m | Current Bid : $27.99Viewoldhall.com1d, 13h | Current Bid : $14.99Viewwatchepisodes.co2d, 4h | Current Bid : $27.99Viewvpstudios.com3d, 8h | Current Bid : $14.99Viewchangeyourcar.com1d, 2h | Current Bid : $13.99Viewtohmail.com1d, 16h | Current Bid : $13.99Viewthegeorgetownindependent.com1d, 22h | Current Bid : $13.99Viewkalastusoppaat.com1d, 23h | Current Bid : $13.99Viewputlocker-9.me4d, 21h | Current Bid : $17.99View小山.com22m, 46s | Current Bid : $12.99IDNViewinterhuehue.com3h, 12m | Current Bid : $12.99Viewtoysthisyear.com3h, 59m | Current Bid : $12.99Viewthriftstore.us4h, 28m | Current Bid : $10.99Viewwwwstockcharts.co4h, 28m | Current Bid : $25.99Viewhdwallpapers.im5h, 28m | Current Bid : $16.99Viewdepoconsulting.com7h, 39m | Current Bid : $12.99Viewcolombomirror.com14h, 29m | Current Bid : $12.99Viewtobemuslim.com16h, 15m | Current Bid : $12.99Viewmzwriter.org18h, 59m | Current Bid : $13.99Viewlagarinaorchestra.org19h, 2m | Current Bid : $13.99Viewjakartainstyle.com19h, 32m | Current Bid : $12.99Viewlindholmspurs.com22h, 48m | Current Bid : $12.99Viewlinkmp3.com23h, 2m | Current Bid : $12.99Viewdentists-nearme.org23h, 39m | Current Bid : $13.99Viewcorchetes.com23h, 57m | Current Bid : $12.99Viewdaphoz.com1d, 3h | Current Bid : $12.99View123movies.moe1d, 12h | Current Bid : $19.99Viewsintmaarten-wedding.com1d, 13h | Current Bid : $12.99Viewhoteloasisaegina.com1d, 15h | Current Bid : $12.99Vieweprocom.org1d, 18h | Current Bid : $13.99Viewolympiaallages.org1d, 19h | Current Bid : $13.99Viewrenderfactory.net1d, 20h | Current Bid : $13.99Viewgt5rs.com1d, 22h | Current Bid : $12.99Viewedpillonnet.com1d, 23h | Current Bid : $12.99Viewwysteriaband.com1d, 23h | Current Bid : $12.99Viewhfhualang.com1d, 23h | Current Bid : $12.99Viewkill.one2d, 4h | Current Bid : $11.99Viewspeak.one2d, 4h | Current Bid : $11.99View123>>>
That’s it for deleted domains which you can just pick up by heading over to your favorite registrar and registering it right away as long as it says, free and green here. If it says registered it’s obviously taken. This is obviously a cheap way to get some great links because let’s say, you know, this site we saw is not bad. It doesn’t have page rank, but that could be just because there was no content on the site. If it has a solid link profile, you can be sure that the page rank will come back and you can pick it up for about $10.
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.
Very good article and overview explanation. However I would not recommend buying names with bitcoin, ripple, etc in them. Not only will it be oversaturated those names are brands and can / will be trademarked and you can still be hit with a UDRP. Only register generic names like buycrypto.com, buyingcryptocurrency.com, theblockchain.com, etc. There are tons of opportunities and no need to infringe on a brand name.
So, what I like to do is also choose DMAS listed entry. No fake or no unsure page rank. Click the apply filter button and this will show us a much better group of websites, including a lot of high page rank websites. That’s one great thing about Go Daddy Auctions that you don’t have to guess about what the rank will be which is not the case with a lot of deleted domains which, because they were deindexed they didn’t have any content, they didn’t have any hosting, they don’t have any page rank. So, you have to make an estimation.
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Dictionary Word/Pronounceable/Memorable/Brandable: A dictionary word domain name is very valuable. Of course, the more popular and widely used the word is, the better. For example, “marketing.com”, “cars.com” and “hotels.com” are 7-8 figure domain names. Even if a domain name isn’t a dictionary word, being pronounceable and/or memorable and/or brandable are all big pluses that add to its value.
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