Make Money Online with Domain Name in Three Ways - Part 1

In the real estate industry, there are three common ways of making money with housing: flip it, rent it out, or live in it while waiting the value builds up and sell it in future for great profit.

For domain name, you can make money exactly the same three ways as applied in the real estate industry.

Flipping
These days, it is hard to make money by flipping real estate. But flipping domain names is in different case. Flipping domain names works pretty simple. Just like reselling business. You purchase inventory then resell it to the market for profit. The domain names are your inventory or product. You will be buying domain names and sell them out quickly for profit. You don't intend to keep those domain names to develop a website on them, nor will you part it on a domain parking site.

You can buy a lot of domain names from prices $7 to $15 and sell them as quick as possible. These domain names generally have very little or no traffic at all. Thus, they aren't a valuable piece of cyber real estate that will net you thousands of dollars of profit. But, if you have bought some good names, you probably can find buyers willing to pay you $20 to $100 for a domain name.

One of the good places for selling your domain names is eBay.com. By running auctions, you gain the advantage of pressuring the buyers to fight over your domains which will drive up your prices.

All the domain names sale auctions are listed under Web Domains & Services – a sub-category of Computers & Networking category in eBay.com.

One type of domain names that often sell well in eBay.com is those four letter acronyms domain names. They don’t have to make sense, as long as they are good to pronounced, people will place their bid to buy. To know what other types of domain names are attracting buyers, you need to do research.

Browse the auction pages to find those domain name auctions that attract bids, take a look the domain names, how the sellers set up their auction and write their sale description. This can give you hints and ideas of what domain names you should sell in eBay.

Another marketplace helpful to your domain flipping business is Sedo.com. You not only can buy your inventory (domain names) there, but also resell your inventory for profit in the same place. Sedo allows you to list your domain names for sales. There are two options to choose when listing domain names in Sedo.com which are “Fixed Price” pricing option and “make offer” option. Using the “fixed price” option means you are setting a price that you want to sell. But this option isn’t recommended because most buyers prefer to negotiate when buying domains. So, it is best to use the “make offer” option. Let the buyers make an offer to you and state the price they are willing to pay will increase your chance of making a sale.

Sedo wouldn’t charge you for listing your domain names for sales, but you need to pay at least 10% commission if a sale is resulted. The minimum commission you must pay is $50 if you sold a dot com, dot net, dot info and dot org domain name in Sedo. So, you would want to use Sedo only when you have high potential domain names to sell.

Some other trusted marketplaces for selling domain names are snapnames.com and tdnam.com and etc.

Part 2 of this article has been published, you may read it here.