ResidualEquity.com: The Complete Guide to Making Money on the Domain Name Aftermarket: Research, Buying, Selling, and Marketing Domains
The domain name aftermarket has evolved into a thriving and profitable industry, enabling individuals and businesses to make substantial returns on investments.
People are buying domain names, holding them for long-term appreciation, or flipping them for quick profits.
Whether you’re a beginner or an experienced investor, this guide will provide you with a comprehensive look into how people are making money on the domain name aftermarket.
We’ll cover:
- What the domain name aftermarket is.
- How domain investors research, buy, hold, and sell domain names.
- Strategies for holding domains for long-term value.
- Techniques for flipping domains for quick profit.
- How to market and sell domain names to businesses and individuals.
- Where to find potential buyers and how to effectively reach them.
By the end of this guide, you’ll have a clear roadmap for entering the domain aftermarket and making money through strategic domain name investments.
1. Understanding the Domain Name Aftermarket
The domain name aftermarket refers to the secondary market where previously registered domain names are bought and sold.
When a domain name is no longer needed or has expired, it can become available for sale to new buyers.
Domain names are valuable assets because they represent online real estate — just as physical land can appreciate in value, so too can domain names.
Domainers, or domain investors, often buy domain names with the goal of reselling them at a profit.
The process of buying and selling domains can range from speculative investments to well-researched strategic purchases based on market trends, keyword demand, and brand potential.
The value of a domain can depend on several factors:
- Brandability: How easily the domain can be used as a brand.
- Keyword Richness: Whether it contains valuable or popular keywords.
- Length: Shorter domains are typically more valuable.
- Domain Extensions: Certain TLDs (Top-Level Domains) like ".com" are more valuable than others like ".net" or ".info."
- Age: Older domains are often seen as more authoritative by search engines.
- Search Traffic: Domains that are already receiving traffic may have greater value due to their potential SEO benefit.
2. How to Research What Domains to Buy
A. Keyword Research
One of the first steps in identifying valuable domain names is conducting thorough keyword research. Keywords play a crucial role in determining how much organic traffic a domain can potentially generate.
Here’s how you can conduct keyword research for domain investing:
- Use Google Keyword Planner: Google’s free tool provides search volume data and insights into how often certain keywords are searched for. Domains that match popular, high-traffic keywords are often more valuable.
- Leverage SEO Tools: Tools like Ahrefs, SEMrush, and Moz can provide insights into keyword competitiveness, search volume, and related keyword opportunities.
- Focus on Niche Markets: Keywords that target niche industries often have less competition, but the domains related to those keywords can still be valuable to specific buyers. For example, industries like AI, cryptocurrency, and healthcare technology are growing quickly, and domains targeting those niches may appreciate in value.
Example Strategy:
- Search for high-demand keywords in growing industries (e.g., “AI software” or “telemedicine”).
- Find variations of those keywords that are available as domains (e.g., “AISoftwareTools.com” or “TelemedicinePlatform.com”).
- Check the competition for similar domains and see if there’s a gap in the market that you can fill.
B. Trend Analysis
Staying ahead of market trends is key to finding domains that will increase in value. You can monitor trends by keeping an eye on:
- Google Trends: This tool shows the popularity of specific search terms over time. Look for upward trends in emerging industries or topics.
- Social Media Trends: Platforms like Twitter, LinkedIn, and Reddit can provide real-time insights into what people are talking about. Look for trending hashtags or discussions around new technologies, industries, or markets.
- Industry Reports: Regularly read reports and news from industries you are targeting. For example, blockchain, cybersecurity, and renewable energy are sectors that continue to see rapid growth. Domains related to these industries may become increasingly valuable.
Example Strategy:
- Use Google Trends to identify keywords and industries that are seeing rapid growth.
- Search for related domain names that are still available.
- Purchase domains that align with these trends, and hold them for long-term appreciation as the market demand grows.
C. Analyzing Expired Domains
One of the most profitable aspects of domain investing is finding valuable expired domains.
These are domains that were previously registered but have since been dropped or abandoned by their owners.
Expired domains can have valuable backlinks, search traffic, or brand potential.
Here’s how to analyze and purchase expired domains:
- Use Expired Domain Platforms: Websites like ExpiredDomains.net, DropCatch.com, and NameJet allow investors to search for expired domains by keyword, domain extension, or other criteria.
- Check Domain Authority: Expired domains may still retain SEO value in the form of backlinks and domain authority. Tools like Moz or Ahrefs can help you check a domain’s backlink profile and domain authority before purchasing.
- Look for Brandable Expired Domains: Some expired domains may have been used as brands or businesses in the past. Even if they don’t have a strong keyword profile, brandable expired domains can still have value for future business owners.
Example Strategy:
- Set up alerts on ExpiredDomains.net for keywords or industries you’re interested in.
- Monitor expired domain auctions for high-value domains with strong SEO metrics.
- Purchase expired domains that have brand potential or strong backlinks.
D. Brandability and Memorability
In addition to keywords and SEO metrics, brandability is a critical factor in domain value.
Brandable domains are short, easy to spell, and memorable.
Businesses are often willing to pay a premium for domains that can serve as the foundation for their brand.
Here are some tips for identifying brandable domains:
- Keep it Short: Domains that are fewer than 10 characters tend to be more valuable because they are easier to remember and type.
- Avoid Numbers and Hyphens: Numbers and hyphens make domains harder to remember and can confuse users when they’re trying to type the domain.
- Use Common Words or Suffixes: Some of the most successful brandable domains use common words or suffixes (e.g., Spotify, Dropbox, Shopify).
Example Strategy:
- Brainstorm short, easy-to-remember domain names that could serve as a brand.
- Check if these domains are available or have recently expired.
- Focus on acquiring domains that are brandable, even if they don’t have strong SEO metrics.
E. Domain Age
The age of a domain can impact its value because older domains are often seen as more authoritative by search engines.
Additionally, older domains may already have a history of backlinks and search traffic, making them more appealing to buyers.
Here’s how to assess the age of a domain:
- Use Whois Lookup: Websites like Whois.net allow you to check the registration date of a domain, giving you insights into its age.
- Check for Backlink History: Older domains may have accumulated valuable backlinks over the years. Use tools like Ahrefs or Moz to analyze the domain’s backlink profile.
- Assess the Domain’s Traffic History: You can use tools like Wayback Machine to see the historical content of a domain and assess whether it has generated traffic in the past.
Example Strategy:
- Search for older domains that have been abandoned or expired.
- Check their SEO and backlink profile to see if they still retain value.
- Purchase aged domains that can serve as a foundation for future businesses or websites.
3. Should You Hold or Sell a Domain?
One of the biggest decisions domain investors face is whether to hold onto a domain for long-term appreciation or sell it quickly for a fast profit.
This decision depends on several factors, including market demand, the domain’s value, and your cash flow needs.
A. Factors to Consider When Holding Domains
- Long-Term Market Trends: If you’ve invested in domains related to emerging industries (e.g., AI, cryptocurrency, renewable energy), it may be worth holding onto them for several years as the market grows.
- Increasing Demand: Domains related to popular or growing industries tend to appreciate in value over time. For example, domains related to e-commerce saw significant appreciation during the COVID-19 pandemic as more businesses moved online.
- Domain Age and SEO Value: Older domains with strong SEO metrics can increase in value as they accumulate more backlinks and traffic. Holding onto these domains can allow you to sell them at a higher price in the future.
- Brand Potential: Domains that have strong brand potential can be worth holding onto, especially if you believe that future buyers will be willing to pay a premium for them.
Example Strategy:
- Purchase domains related to emerging industries or trends.
- Hold onto them for several years as market demand increases.
- Continue to build the domain’s value by generating backlinks, improving SEO, and creating landing pages that showcase its potential.
B. Factors to Consider When Selling Domains Quickly
- Unsolicited Offers: If you receive unsolicited offers for a domain, it may be a sign that the domain is in high demand. In these cases, it may be worth selling the domain quickly to capitalize on the interest.
- Immediate Cash Flow Needs: If you need immediate cash, selling domains quickly can help generate short-term income. Many domain investors flip domains within a few months of purchase to maintain liquidity.
- Saturated Markets: If you’ve invested in domains related to a highly competitive market, it may be better to sell the domain quickly before prices drop. For example, if there are already many domains available in a specific niche, the value of your domain may decrease over time.
Example Strategy:
- Monitor the market for unsolicited offers or trends that suggest your domain is in high demand.
- List your domain on marketplaces like Sedo or Flippa to generate quick sales.
- Sell domains that are related to saturated or highly competitive markets.
4. Marketing Domain Names for Sale
Once you’ve decided to sell a domain, marketing it effectively is crucial for attracting buyers and getting the best possible price.
Here are some of the most effective strategies for marketing domain names:
A. Listing Domains on Marketplaces
Domain marketplaces are the most popular platforms for selling domains.
These websites allow you to list your domains for sale and connect with potential buyers.
Some of the top domain marketplaces include:
- ResidualEquity.com: One of the very few (if not the only one) that offers a marketplace platform with FREE LISTING and ZERO COMMISSION FEE as well as marketing services for premium listing, in social media networks.
- Sedo: One of the largest domain marketplaces, Sedo offers global reach and a wide range of buyers. Sedo also provides domain appraisal services to help you set the right price for your domain.
- GoDaddy Auctions: GoDaddy Auctions is a popular platform for buying and selling domains. GoDaddy’s massive customer base means that your domain will be seen by a wide range of buyers.
- Flippa: Known for its diverse listings, Flippa allows users to sell domains alongside websites, apps, and online businesses. It’s a great platform for investors looking to sell domains to digital entrepreneurs.
When listing your domain on a marketplace:
- Use a compelling description that highlights the domain’s potential value.
- Set a competitive price based on recent sales of similar domains.
- Consider using a domain appraisal service to ensure you’re pricing your domain correctly.
B. Creating a Dedicated Landing Page
A landing page is a dedicated website that showcases the domain and encourages potential buyers to make an offer. Creating a professional landing page can help you market the domain more effectively and highlight its value.
Here’s how to create an effective landing page for your domain:
- Use a Clear Call-to-Action: Encourage potential buyers to contact you or make an offer directly on the landing page.
- Highlight the Domain’s Value: Include details about the domain’s SEO potential, brandability, and relevance to specific industries.
- Showcase Traffic and Backlinks: If the domain has existing traffic or a strong backlink profile, highlight this information on the landing page.
- Provide Contact Information: Make it easy for buyers to get in touch with you. Include a simple contact form or email address where buyers can reach out.
Tools like Uniregistry Market and Efty allow you to create professional landing pages for your domains without needing technical expertise.
C. Email Outreach to Potential Buyers
For high-value domains, personalized email outreach can be an effective way to connect with potential buyers. By identifying businesses or individuals who would benefit from owning the domain, you can pitch your domain directly to them.
Here’s how to conduct email outreach effectively:
- Identify Target Buyers: Research businesses, startups, or individuals who could benefit from owning your domain. For example, if you own the domain GreenEnergySolutions.com, you might reach out to renewable energy companies.
- Craft a Personalized Pitch: Write a concise email that explains why the domain is valuable and how it can benefit the recipient’s business. Highlight the domain’s SEO potential, brandability, and relevance to their industry.
- Follow Up: Many potential buyers won’t respond to the first email. Send a polite follow-up email after a week to remind them about the domain.
Example Strategy:
- Create a list of businesses in your domain’s target industry.
- Craft personalized emails that explain the value of the domain and encourage the recipient to make an offer.
- Follow up with potential buyers to increase your chances of making a sale.
D. Using Social Media to Market Domains
Social media platforms like LinkedIn, Twitter, and Facebook can help you reach a wider audience of potential buyers. LinkedIn is particularly useful for targeting professionals and businesses in specific industries.
Here’s how to market domains on social media:
- Post in Relevant Groups: Join industry-specific groups on LinkedIn or Facebook and post about your domain in a way that highlights its value.
- Use Hashtags: On Twitter and LinkedIn, use relevant hashtags (e.g., #domainsforsale, #brandable) to increase the visibility of your post.
- Run Paid Ads: If you’re selling a high-value domain, consider running targeted ads on LinkedIn or Facebook. You can target specific industries or job titles to reach potential buyers.
Example Strategy:
- Post about your domain in LinkedIn groups related to your domain’s industry.
- Use hashtags like #domainsforsale or #brandable to increase visibility on Twitter and LinkedIn.
- Run a targeted LinkedIn ad campaign to reach decision-makers in your domain’s target industry.
E. Networking and Forums
Domain forums and communities are great places to connect with other domain investors, share knowledge, and market your domains.
Participating in these communities can help you find potential buyers and get feedback on your domain portfolio.
Some of the top domain forums include:
- DNForum: One of the largest domain forums, DNForum is a great place to network with other domainers and list your domains for sale.
- NamePros: This forum is known for its active community of domain investors. You can list your domains for sale or participate in discussions to learn more about the domain industry.
- DomainState: Another popular domain forum, DomainState allows users to buy, sell, and discuss domain names.
When participating in forums, be sure to follow each community’s rules regarding self-promotion.
Many forums have specific sections where you can list domains for sale.
Example Strategy:
- Join DNForum and NamePros to network with other domain investors.
- List your domains for sale in the appropriate sections of each forum.
- Participate in discussions to learn more about industry trends and connect with potential buyers.
F. Using Domain Brokers
Domain brokers specialize in helping domain investors sell their domains.
Brokers have established networks of buyers and can help you connect with businesses, investors, and domain portfolio managers.
Here’s how to work with a domain broker:
- Choose the Right Broker: Look for brokers who specialize in your domain’s niche or industry. Some brokers focus on high-value domains, while others may specialize in brandable or keyword-rich domains.
- Negotiate a Fair Commission: Brokers typically charge a commission based on the final sale price of the domain. Be sure to negotiate a fair commission rate that reflects the value of the domain.
- Let the Broker Handle Negotiations: Once you’ve chosen a broker, they’ll handle the negotiations with potential buyers. Brokers are skilled negotiators who can often secure a higher price for your domain.
Example Strategy:
- Reach out to a domain broker who specializes in high-value domains.
- Negotiate a commission rate that reflects the value of your domain.
- Let the broker handle the negotiations with potential buyers to maximize your sale price.
5. Where to Find Buyers for Your Domains
Finding the right buyers for your domains is essential to making profitable sales. Here are some of the most effective places to find potential buyers:
A. Domain Marketplaces
As mentioned earlier, domain marketplaces like Sedo, GoDaddy Auctions, and Flippa are some of the most popular platforms for selling domains.
These platforms have large audiences of buyers, making them a great place to find potential customers for your domains.
B. Direct Outreach to Businesses
For industry-specific domains, direct outreach to businesses can be an effective way to find buyers.
Research companies in your domain’s target industry and reach out to decision-makers with a personalized email.
C. Industry Conferences and Events
Industry conferences and events can be a great place to network with potential buyers.
Many businesses attend conferences to learn about new trends and opportunities, making these events a great place to showcase your domains.
D. LinkedIn and Social Media
Social media platforms like LinkedIn, Twitter, and Facebook can help you reach a wider audience of potential buyers.
LinkedIn is particularly useful for connecting with professionals and businesses in specific industries.
E. Domain Brokers
If you’re selling a high-value domain, working with a domain broker can help you find buyers more quickly.
Brokers have established networks of buyers and can help you connect with businesses, investors, and domain portfolio managers.
What To Consider
The domain name aftermarket offers significant opportunities for investors who know how to research, buy, hold, and sell domain names.
By conducting thorough keyword research, analyzing market trends, and marketing your domains effectively, you can build a profitable domain portfolio.
Whether you choose to hold domains for long-term appreciation or flip them for quick profits, the key to success in the domain aftermarket is staying informed and adapting to market trends.
With the strategies outlined in this guide, you’ll be well-equipped to make money in the domain name aftermarket and build a successful domain investment business.