If domains are real estate, then the same rules of real estate should apply. In real estate, taxes are based on the value of the property. So, a person asking $10,000 for a domain shouldn't be paying the standard $15-30 renewal fee as a person asking $200. The renewal fee should be based on the domain's value. Domainers want to claim it's like real estate without applying the most fundamental rules of real estate.
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.
Great article on what to look for when buying expired domains! I’ve looked at the domain and page authority of expired domains but haven’t checked if they are blocked by Google like you’ve listed. I haven’t pulled the trigger yet to purchase one (probably good that I didn’t since I didn’t do all my homework) but this will make it easier to finally go. Thanks for the great info!
Before you park any domain names, you must focus on finding hot keywords that buyers would be interested in. The best way to make sure you get a good return on your investment is to pick a domain name with acceptable traffic, somewhere around 10,000 searches a month. You can do this conveniently by using tools like Google Keyword Planner or Niche Finder Software.
I don't necessarily agree with some that dropped domains don't have value for SEO purposes but either way one thing you can do is to check out our tool for finding auction domain names (the tool has a database of domains available buy from GoDaddy and SEDO and also give additional SEO criteria to look up for the domains like backlinks, Compete data, CPC, Google stats, Alexa stats, etc. and there is also an option to schedule auction domain alerts so that you can be notified via email if a domain name meeting criteria you specify gets put up for sale) or you could use our tool fo domains dropping soon that shows all domains dropping in the next 5 days that way you can be ready to snap them up right away.
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.
Domains are more than a web address. They often have value that extends well beyond their initial registration price. Depending on how memorable it is or how well it ranks on Google, a domain that initially cost a few bucks can be worth a lot of money to the right buyer. That’s why domain auctions exist – to give domain owners an opportunity to sell their name for a profit, and give buyers a chance to get a name that can take their website to the next level.
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.
Namejet is a domain clearing house (at least that is my term for it).  What happens is that people let their domain names expire everyday.  Some people just don’t need their domain anymore, some people forget to renew it, some people die, I mean there can be hundreds of reasons why a domain will not be renewed.  What the domain registrars want to do is cash in on the domain that someone forgot to renew, so they offer that domain to Namejet to auction it to the general public.  Think of it like a storage unit, someone doesn’t make their payment and the storage company hires an auctioneer to come and auction the storage unit to the general public.  Namejet is doing this but for domain names.  The bid for each domain starts at $69.  What I LOVE about Namejet is the process…  they let you search through the domains that are coming up for auction 30 days in advance.  Whoever places a $69 bid on a domain will be entered into an auction when the 30 days runs out with everyone else who placed a bid.  If you are the only bidder than you get the domain for $69.  If there are 10 other bidders than there is a closed auction, meaning only you 10 guys can bid now against each other in a 3 day auction with the highest bidder taking the domain when the clock strikes zero.  I love this because let’s say there is a great domain and it flies under the radar.  If it goes to auction with only 3 or 5 or 7 bidders my chances of winning this domain at a very low price are great.  I’ve won domains for $100 which I was able to flip for $2,000.  I won a domain for $2,500 which I flipped within 4 months  for $7,500.  I won a domain for $1,000 which I’ve turned down $5,000 offers on because I think I can get $10,000 for it.  The key is to not overpay in order to leave yourself plenty of room to turn a profit when you flip the domain.
The great thing about this is that it’s kind of like a metasearch engine for all the places that you can find expired domains around the web. First, let’s look at deleted domains. Okay? To do that, you go click on the deleted domains button here and then click on any top level domain that you want to get. I prefer .com because it’s obviously the most common top level domain.
For the following TLDs you can now find a expired/deleted domain list. .gi, .gl, .gy, .hn, .ht, .ky, .mu, .om, .pf, .qa, .rw, .sb, .sm, .sn, .st, .sx, .tc, .tl, .ug, .uy They also show up in the Deleted Domains (last 7 days) list and in the Domain Name Search, however they are not in the pending delete list! I do not have a working droplist for them yet, so that is why they are not released in the pending delete list yet.

Domain name expert Bill Sweetman has provided strategic domain name advice to major companies around the world for over 20 years. Bill is the President & Lead Ninja of Name Ninja, a boutique domain name consulting firm that helps companies acquire, manage, protect, and profit from their domain names. A self-confessed domain name fanatic, Bill registered his very first domain in 1994 (which he later sold for five figures) and has been perfecting his “Domain Karate” moves ever since.
Another point of concern is that many people feel that squatting or registering domains is unethical. This is because many web developers have a hard time finding relevant domain names for their projects since most of them have already been registered. Many corporate giants also frown upon the domain flipping industry because many domain names relevant to them are already registered.
Official marketplaces offer a third possibility for domain traders to peddle their product. Domain marketplaces, such as Sedo, GoDaddy.com, or BuyDomains.com, connect potential buyers with domain holders hoping to sell their valuable virtual property. These platforms function as a kind of domain real estate agency and are known to sometimes demand high prices for their services.
Hi guys, just a thought, you do not need to build traffic to the domain yourself, you can always buy expired domains, best to subscribe to a paid service like dropping.com (so you are the first to know) or a free one, expireddomains.net and in this way, you can get old domains that have traffic. You could use these domains for parking, getting advertising income or even to sell. I have noticed, that domains that were not hot in the past, can still be hot now, just use Google Trends to type in the keyword, and you will see its future projections. 
The truth is that you require at least one year’s time to get around only the basics of the domain flipping business, leave alone making huge money from it. During this time, you’ll make several mistakes, buy useless domain names, lose out prospective deals and much more. Domain flipping is far from any get rich quick method. If overnight results are what you’re after, domain investing may not be your piece of cake. This business involves a real and steep learning curve which many people find difficult to climb.
Thanks for this post. I do good with Adsense and wanted to branch out so I bought 5 domains from Namejet after reading this thread. After the 5 auctions ended I spent $500 total. I contacted 30 people about these domains and after a few bites I was able to sell one of them for $500 so I got my money back and now what I sell the other four for is all profit. The best part about this is that it is not very time consuming. I spent maybe an hour on Namejet. I spent maybe two hours sending out emails. Thanks again!
Link popularity: the link popularity is a parameter that is used to quantitatively evaluate incoming links to a website. This is measured depending on the number of links to a domain according to the mantra 'the more incoming links, the more important the site'. Link popularity is generally determined by the PageRank algorithm. The PageRank only plays a minor role in determining the domain’s relevance.

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.
Chris takes us through his stages of domain investing: educating himself, antique picking previously owned dropped domains, buying brandable expired domains and his first 2 profitable flips. We touch on the tough topics of frontrunning and GoDaddy expired auction changes, plus the 4 letter word of domainers, CALL- with Chris’ current 100% success rate on phone calls!
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.
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