Earning Money with Domain Trading - How It Works

Suitable domain names can actually bring in a lot of money nowadays. A website published on the domain address can influence its value. However, having a website on the domain is not necessarily required to actively participate in domain trading. After all, every domain address already has its own value. One important factor for the value of an internet address on the marketplace is the use cases of domains. Those looking to claim a specific domain are often willing to spend a more or less substantial amount for it. But what should be considered when trying to sell a domain as lucratively as possible?

How is the value of a domain determined?

To set up a successful domain trade, it is important to first determine the value of specific domains. The domain extension already provides some insight. Established TLDs such as .com or .de are much more popular than the newer Top-Level Domains. Additionally, short and concise domain names are much more appealing than long compound word compositions. Domains containing unusual word creations or multiple parts are harder to sell and generally fetch lower prices on the market.

Another aspect influencing the value is the SEO aspects of the domain. If a domain name already includes a relevant search term, a higher price can usually be realised. Online tools can help to get an impression of the market value of a domain. These tools display sale prices of similar addresses, allowing for a comparison to determine a potentially achievable price. Finally, the price for a web address should not be set too high to avoid deterring potential customers. Additionally, it is important for a domain trader looking to regularly engage in trading to constantly monitor the market. Assessing lucrative investments and trends in the various types of domains can only be done by observing the market for a period of time.

Which Approach is Suitable for Domain Trading?

There are different approaches through which domains can be sold.

• One option is to place a "For Sale" sign with a clear indication on the homepage of the web address. Interested parties can now directly contact the seller to negotiate the sale of the web address.
   
• Another option is to sell on eBay, which boasts a good infrastructure. This way, all the functions known from selling other products can be utilised.
   
• Another way to sell domains is by using a website or platform such as Flippa or Sedo. These platforms provide special marketplaces where domains can be traded. This option is not only practical for individuals looking to sell an unused domain but also essential for those looking to establish a proper domain trading business.

Selling Domains - How Should Listings Be Designed

If you want to conduct domain trading on a domain marketplace, through an online shop, or a platform, you must create a listing for each domain. As with all other sales activities, a few rules should be followed here as well. Simply mentioning the domain name and price is not very attractive. Potential buyers expect more than just a listing on the platform. Traders who provide additional information can find interested parties more quickly and excite them to purchase the domain. Even though it may sound strange, a domain can also benefit from a product description. Information on the website's previous ranking and details about the areas for which the URL is particularly suitable can be helpful.

"A picture is worth a thousand words"

An image can even be added to the description of a domain. A screenshot of the former website or a graphic representation of the domain name can pique interest. Visitors to a marketplace are always more inclined to pay attention to listings with images. At this point, it can be advantageous to delve into the existing or expected future value of the domain. This way, the asking price can be most easily justified.

Not all marketplaces are the same

For those looking to start in domain trading, it's important to consider what information can be provided on the chosen marketplace. Not all platforms allow for extensive details to be added or desired. While this may not necessarily result in a disadvantage for the listing, it is still a selection criterion. Many platforms prefer to offer the option to promote the domain name specifically for a fee. Investing in advertising should be carefully considered, as it is only worthwhile if a higher price can be achieved upon sale.

When the purchase is finalised

Once a buyer has been found, the transaction must of course be completed. The payment process must be regulated accordingly, as domain sales are not like shopping at a supermarket. Typically, platforms involve an intermediary to bring the buyer and seller together and ensure mutual protection. To avoid legal disputes, engaging an external escrow service is generally advisable. After the sale, the domain must then be transferred to the buyer. The procedure depends on the Domain Provider that provided this domain. This provider also manages the access rights. Only when the new owner has been registered in the domain's registry is the sale completed.

For those looking to enter the domain business professionally, they can benefit from cheaper domain prices through special Domain Reseller offers.

Image credit: Gerd Altmann on Pixabay