The domain name aftermarket has become a lucrative venture for those who understand the intricacies of buying, holding, and selling domain names.

Top 10 brokers in U.S. and Canada make as much as $10 million per year, and top 100 make as much as $1-$2 million per year.

Domain investors (also called domainers) navigate a market that can generate substantial profits with the right research, marketing, and sales strategies.

Below we discuss who they are and how they are making money in the domain name aftermarket, what strategies they employ and how they research and invest in domains and promote these domain names to potential buyers, including where and how to reach these buyers.

 

Understanding the Domain Name Aftermarket

The domain name aftermarket is the secondary marketplace where domain names are traded after their initial registration.

In many cases, the most desirable domains (those with valuable keywords, short names, or memorable phrases) are already registered.

Domain investors purchase these registered domains from existing owners with the intention of selling them at a higher price in the future.

There are several types of domain names that are particularly valuable:

1. Exact Match Domains (EMDs) – Domains that exactly match high-volume keywords (e.g., "CheapFlights.com").
2. Short Domains – Domains with fewer than five characters or popular acronyms (e.g., "CNN.com" or "ABC.com").
3. Brandable Domains – Creative, easy-to-remember names that businesses can use as brand names (e.g., "Zynga.com").
4. Geographical Domains – Domains tied to locations, especially cities or regions (e.g., "NewYorkHotels.com").
5. Industry-Specific Domains – Domains that cater to niche industries or sectors (e.g., "CloudHosting.com").

As the online world grows, businesses need memorable and accessible domain names to stand out in search engines and build trust with customers.

For domainers, this demand creates a vast opportunity to acquire domains at a lower cost and sell them for a premium.

Top Domain Brokers (or Domainers)

The domain name industry is a niche but highly profitable sector, particularly for domainers who specialize in buying, selling, and managing domain names.

Here's a list of some of the most well-known domain investors and brokers (domainers) in the U.S. and Canada have made substantial profits.

Currently, notable domainers and brokers in the industry are:

1. Rick Schwartz ("Domain King") - Known for high-value sales, such as the $3 million sale of Men.com.
2. Frank Schilling - Founder of Uniregistry, with sales in the tens of millions.
3. Andrew Rosener - Founder of Media Options, known for brokering premium domain deals.
4. Michael Berkens - Owner of Worldwide Media and a top domain name investor.
5. Ammar Kubba - CEO of Thought Convergence, with a significant domain portfolio.
6. Page Howe - Notable for sales of premium domains such as Seniors.com.
7. Kevin Ham - Known as "The Man Who Owns the Internet," with a large portfolio.
8. Mike Mann - Founder of DomainMarket, known for selling thousands of domain names annually.
9. Adam Dicker - A veteran domain investor with numerous successful transactions.
10. Elliot Silver - Founder of Elliot’s Blog, active in domain investing and brokering.

Transactions, like Schwartz’s $3 million deal, are not rare, and top domainers earn seven or eight figures annually, depending on the size and quality of their portfolios and the number of high-value sales they complete each year.

For example, brokers like Andrew Rosener may handle multiple premium domain sales each year, earning commissions up to 20% on sales that can exceed millions of dollars.

On the high end, successful domainers like Frank Schilling and Mike Mann could generate revenue in the tens of millions annually due to the sheer volume of their sales and holdings​.

A list of some of the top domain name sales ever recorded:

These include those that have reached multi-million-dollar figures:

1. Voice.com - $30 million (2019)
2. 360.com - $17 million (2015)
3. Sex.com - $13 million (2010)
4. Fund.com - $12 million (2008)
5. Hotels.com - $11 million (2001)
6. Tesla.com - $11 million (2016)
7. Porn.com - $9.5 million (2007)
8. Porno.com - $8.8 million (2015)
9. Fb.com - $8.5 million (2010, purchased by Facebook)
10. We.com - $8 million (2015)
11. Business.com - $7.5 million (1999)
12. Diamond.com - $7.5 million (2006)
13. Beer.com - $7 million (2004)
14. Z.com - $6.8 million (2014)
15. iCloud.com - $6 million (2011, purchased by Apple)
16. Israel.com - $5.88 million (2008)
17. Casino.com - $5.5 million (2003)
18. Slots.com - $5.5 million (2010)
19. Toys.com - $5.1 million (2009)
20. Clothes.com - $4.9 million (2008, purchased by Zappos)
21. Medicare.com - $4.8 million (2014)
22. IG.com - $4.7 million (2013)
23. CreditCards.com - $4.5 million (2004)
24. VacationRentals.com - $35 million (reported to prevent a competitor from acquiring it in 2007)

Notable domain name leases, (specific financial details may not always be available):

Notable domain name leases:

1. Sex.com – One of the most expensive domains ever sold has also been involved in leasing deals, as it consistently holds value in the adult content industry.

2. Candy.com – Leased to an online candy retailer before eventually being sold for around $3 million.

3. IRS.com – Leased to a company providing tax services and products.

4. Poker.org – Leased by a poker-related business for use in the gaming sector.

5. Gumtree.co.za – Gumtree, a classified ads site, leased this country-specific domain to local users in South Africa.

6. CarInsurance.com – A high-value domain in the insurance industry, known for being leased by various companies in this competitive sector.

7. Insurance.com – Similar to CarInsurance.com, it has been leased and managed by multiple companies over the years.

8. Diamond.com – Leased to a jewelry company, given the brandable value and high traffic potential for luxury goods.

9. Loans.com – Known to have been involved in lease arrangements for financial service providers, particularly in personal and business loans.

10. CreditCards.com – Another financial domain that was leased before being fully acquired by a credit card comparison company.

An Exception? or Not? LasVegas.com Lease-Purchased for reported $90 million:

The domain name LasVegas.com is widely regarded as one of the most expensive domain transactions in history.:

• Transaction Price: The domain was reportedly sold (lease-purchase) for $90 million, which is often cited as the largest domain name transaction to date. However, the deal was structured as a long-term lease-to-own agreement, meaning the buyer did not pay the full amount upfront.

• Date of Transaction: The agreement was made in 2005.

• Buyer: The domain was acquired by Vegas.com LLC, a company that operates an extensive network of websites related to tourism in Las Vegas. Vegas.com is part of the Stephens Media Group.

• Seller: The original owners of LasVegas.com were a group of investors, including the Travel Vegas Network, who saw the potential in owning such a premium domain name.

• Structure of the Deal: The deal was arranged in a way that spread payments over a period of 35 years. Payments started with $12 million for the first year and then were structured in incremental annual payments.

Here are some of the top domain brokers in the U.S. and Canada:

1. ResidualEquity.com Broker Service – One of the lowest cost domain brokers in the industry with extensive broker services and hands-on customer service, specializing in both low-cost and premium domain sales. Broker services are 10%, one of the lowest (if not the lowest), in the industry.

2. MediaOptions – Led by Andrew Rosener, MediaOptions is renowned for brokering high-value domains (over $75,000) and handling some of the largest domain sales globally. Their annual earnings fluctuate based on the volume of premium domain sales​.

3. Grit Brokerage – A preferred choice for those frequently purchasing premium domains. Their focus is on negotiating premium domains, often securing five- or six-figure deals.

4. Uniregistry – Known for providing privacy and secure transactions, Uniregistry has been involved in large-scale domain sales through their brokerage platform, making significant earnings from high-value domain sales.

5. Sedo – A well-established platform for buying and selling domains, Sedo manages both standard and premium domains. Their earnings vary, with some transactions going into the seven-figure range.

6. VPN.com – A specialist in stealth acquisitions for high-profile clients, including celebrities and organizations. They are known for handling domains in the six-figure range.

7. Namecheap – While mainly known for domain registration, Namecheap offers brokerage services as well. They typically handle a broad range of sales, with significant earnings from their premium domain service.

8. BuyDomains – Focuses on premium domain sales with a large inventory of valuable domains. Their earnings come from quick domain transfers and high-value transactions.

9. DomainBooth – Known for low commission rates and competitive pricing on high-end domain sales, they cater to clients looking to sell premium domains.

10. Hilco Digital – Specializes in digital asset and domain name transactions, often working with premium and one-word domain names, generating significant revenue.

Most of these brokers operate on a commission basis, often charging between 10% and 20% of the sale price.

Some brokers, like MediaOptions and VPN.com, focus on high-end deals, often reaching six or seven figures.

How Domain Investors Research Domains

Before diving into the domain market, understanding how to research and identify valuable domain names is essential.

The key to success lies in selecting domains that have the potential to attract businesses or individuals who see value in owning them.

Here’s how domainers typically conduct research:

1. Keyword Research

Keyword research is crucial to identifying domains that have value based on search engine traffic.

Investors often use tools like:

• Google Keyword Planner – This tool provides insights into how often certain keywords are searched and can help identify potential demand for domains that include those keywords.
• Ahrefs or SEMrush – These tools can give you an understanding of keyword competitiveness and the number of searches for specific terms, helping you determine whether domains containing these keywords are in demand.
• Domain-specific tools – Services like Estibot, NameBio, and GoDaddy Domain Appraisal can help assess a domain's potential value based on factors like search volume, domain age, and historical sales.

2. Trend Analysis

Domain investors often track industry trends to stay ahead of the curve.

By identifying rising sectors (e.g., blockchain, artificial intelligence, or health tech), domainers can acquire names related to these industries before they become mainstream.

Tools like Google Trends can help investors track trending keywords and anticipate future demand for certain domains.

3. Expired Domains

Many valuable domains are dropped or expire due to owners forgetting to renew them or losing interest in a project.

Domainers capitalize on this by monitoring expired domain lists.

Platforms like ExpiredDomains.net and DropCatch.com allow investors to search for expiring domains by keywords, TLDs (top-level domains), or other criteria.

4. Brandability and Memorability

Brandable domains are highly valuable because companies need unique and memorable names to differentiate themselves in the marketplace.

Investors focus on domains that are easy to spell, pronounce, and remember.

They also avoid domains that have confusing hyphens, numbers, or unconventional spellings.

5. Domain Age

Older domains tend to have more authority in the eyes of search engines, especially if they’ve had consistent traffic or backlinks.

Tools like Whois Lookup or domain marketplaces provide information about the age of a domain, which can contribute to its overall value.

6. Analyzing Marketplaces

Domain marketplaces like RisidualEquity.com, Afternic, Sedo, Flippa, GoDaddy Auctions, and NameJet allow investors to view past sales and auction prices, helping them understand which domains sell for the highest prices.

Monitoring these platforms helps investors gain insight into current market trends, identify buyer behaviors, and set competitive prices for their own domains.

Deciding Whether to Hold or Sell a Domain

One of the most critical decisions domain investors face is whether to hold onto a domain for long-term appreciation or sell it quickly for a smaller but immediate profit.

Several factors influence this decision:

1. Market Demand

If a domain name has immediate interest from multiple buyers or fits within a trending niche, domainers may opt to sell it quickly.

Domains that garner unsolicited offers are often a signal that the domain is highly sought after.

2. Potential for Appreciation

Domains tied to emerging industries or trends may appreciate over time.

Domainers often hold onto these domains, expecting them to increase in value as the industry grows.

For example, early investors in domains related to blockchain or cryptocurrency reaped significant profits when those industries boomed.

3. Cash Flow Needs

Sometimes, investors may need quick cash, especially if they’ve invested in a large portfolio of domains.

In such cases, they may sell some domains at a lower price to maintain liquidity.

4. Domain Age and SEO Benefits

Aged domains with strong backlinks or traffic may be worth holding onto because their value can increase significantly with time.

Domains that rank well in search engines can command higher prices due to their potential to generate organic traffic.

5. Unsolicited Offers

Domainers who receive an unsolicited offer for a domain should assess whether the price is worth the immediate sale or whether it’s worth holding out for a higher price later.

In many cases, they’ll negotiate the offer upwards, especially if they believe there’s strong demand.

 

 

Marketing Domain Names for Sale

Once domain investors have decided to sell, marketing the domain effectively becomes the next critical step.

Selling domains requires reaching the right audience, whether businesses, investors, or individuals.

Here’s how to market domains for sale:

1. List on Domain Marketplaces

Domain marketplaces are the go-to platforms for selling domains. Each marketplace offers different features, such as fixed-price listings, auctions, and parking services that generate revenue while the domain is listed. Some of the most popular domain marketplaces include:

• ResidualEquity.com – One of the only few domain name marketplaces that has Free Listing, AND, Zero-Commission which means, you can list your domain name at no cost to you, and if you sell it, there is no commission whatsoever. If you need promotion of yoru domain name, ResidualEquity.com can also promote your domain name (and other assets) for a reasonable price in social media networks. This is a favorite for any domainer who see the incredible value in this service compared to other top marketplaces.
• Sedo – One of the largest domain marketplaces, Sedo offers global reach and a wide range of buyers.
• GoDaddy Auctions – A popular choice, GoDaddy Auctions provides access to a large buyer pool, especially those familiar with GoDaddy’s services.
• Flippa – Known for its wide range of digital assets, Flippa allows users to sell domains alongside websites, apps, and online businesses.
• Afternic – Afternic is another well-known marketplace that also syndicates listings to other registrars, increasing domain visibility.

Domain marketplaces provide a convenient platform, but they usually charge fees for successful sales (ranging from 10% to 20%) with the exception of ResidualEquity.com marketplace.

2. Create a Landing Page

Investors often create dedicated landing pages for their domains to showcase the value and features of the domain.

These pages are designed to capture interest and lead potential buyers directly to purchase inquiries.

Services like Uniregistry Market allow you to create professional landing pages for your domains.

When creating a landing page:

• Include clear messaging about the domain’s value.
• Highlight its SEO potential, brandability, and relevance to specific industries.
• Add a simple contact form so interested buyers can reach out easily.

3. Email Outreach

For high-value or niche domains, personalized outreach to potential buyers can be effective.

Domainers often research businesses or individuals who might be interested in the domain.

For example, if you own HealthTechSolutions.com, you might contact health tech startups, health services providers, or digital marketing firms in the healthcare industry.

When conducting outreach:

• Craft a personalized email with details on why the domain would be valuable for their business.
• Highlight the domain’s potential to improve SEO rankings, brand recognition, and customer trust.
• Keep the email concise and professional, and include a clear call-to-action inviting the recipient to respond or make an offer.

4. Social Media Marketing

Platforms like LinkedIn, Twitter, and Facebook can help you reach a wider audience of potential buyers.

LinkedIn, in particular, is useful for targeting professionals in specific industries.

Posting domain sales updates in relevant groups or using hashtags can also increase visibility.

Domainers can use paid advertising to promote domains on social media, especially if they’re targeting specific industries or geographic areas.

A small investment in targeted ads can help reach decision-makers who are actively looking for domain names for their businesses.

5. Forums and Niche Communities

There are several online forums and communities dedicated to domain investing, such as DNForum, NamePros, and DomainState.

Participating in these communities can help you network with other domainers, get advice, and list your domains for sale.

It’s also possible to market domain names within industry-specific communities.

For example, if you own a domain related to real estate, you could participate in real estate forums and mention the domain to interested parties.

However, it’s important to follow each forum’s rules regarding self-promotion.

6. Use Domain Brokers

Domain brokers specialize in connecting domain sellers with buyers.

Brokers have established networks and relationships with businesses, investors, and domain portfolio managers.

Using a broker can increase your chances of selling premium domains to the right buyer.

However do remember that domain name brokers charge about 20% or more to sell your domain name, with other additional costs and fees added on top.

 

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