Think about things like contractor.com or oranges.com. The more generic you go, the better off you will be. Why? Research has shown that Google likes generic names, so any company selling oranges may, for example, want the oranges.com domain name. If you own that name, you can set the asking price for it. Sounds great, right? There arejust a few things you have to think about first.

The easiest way to see that is to go to HREFs and look at the anchor text. It reveals right away whether or not the site has been spammed. You also want to see if it’s been SEO’d too much. Right? In this case, it’s not because it has a brand name here and some natural keywords, but if the number one anchor text was like, cell phone management system and then the next one was like cheap cell phone management system, you’d know that the anchor text was manipulated and probably overly SEO’d. So, what you want as a site that has a natural link profile.
If you don’t have a lot of money to invest in employees and you’d rather work on your domain portfolio by yourself, you’d need plenty of free time. Generally, mini sites with 5 to 10 pages of content can be built within 5 days, while authority sites with over 10 pages could take up to two weeks. This amount of time would depend on your writing skills and knowledge of SEO techniques.
So how do you develop that instinct? NameBio maintains a database of over 500,000 historical domain sales (as of writing this post). They have interesting filtering features by which you can narrow down domains by price range, date sold, keywords and more. Simply sifting through the listings on NameBio long enough will quickly develop your domain appraisal “instinct”.
Joe Styler serves as product manager for the aftermarket at GoDaddy. He’s responsible for marketplace products including any purchase, sale, or monetization of a domain name. During his nine-year tenure at GoDaddy Joe has served in a variety of directorial and supervisory roles. His passion is seeing his customers become successful in their business goals when using the aftermarket. He has been interested helping people with transactions on the Internet for more than 20 years. Joe received his B.A. from Moody Bible Institute in Chicago, and his Masters in Divinity from Gordon Conwell in Massachusetts.
Buying a trademarked domain name could get you into a lot of hot water. Best case scenario is for the trademark holder to force you into handing the domain over and call it a day. Worst case scenario is you get into a legal battle and end up spending an arm and a leg. This is why it might be a good idea to use the United States Patent and Trademark Office’s (USPTO) website to check for trademarks if you’re unsure about a domain name.

Think about things like contractor.com or oranges.com. The more generic you go, the better off you will be. Why? Research has shown that Google likes generic names, so any company selling oranges may, for example, want the oranges.com domain name. If you own that name, you can set the asking price for it. Sounds great, right? There arejust a few things you have to think about first.

2) prerelease auctions.  These are domains where the auction venue has contracted with the registrar, like Fabulous or Moniker, to auction off non-renewed domains.  Just before a domain enters the pending delete process, it goes to a private auction to any person who has backordered the name.  Some people feel that back links on these type of auctions still provide a SEO benifit. My testing indicates that there is zero SEO benifit when these domains are redirected into another site.  So if you get a domain with "pink squirels" in a lot of achor text to a domain and then point it at your domain, you don't rank for "pink squirels"
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.
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