Guide to making a buck in the world of domain names (Part 1)

In this multi-part blog post, I’m going to walk you through the process of buying and selling a domain name. It’s not an in depth set of instructions, but this post should help people understand how domain trading works. With this knowledge, one day you will also sell domain names, make a profit off it, and have fun in the process
Today, we’re going to cover buying a domain.

1. Buy a domain.

This is the easiest part, but it’s still part of the process. You can buy a domain either through a registrar or through someone who has already bought the domain. It’s almost always cheaper through a registrar, because they will register any domain that hasn’t been taken already, and they will do it for a lower price than someone who has a top dollar domain. Unless you’re looking for a specific domain that has already been registered, you should go through a major registrar. Try to pick one that has been accredited by ICANN (take a look at their accredited list here.) Registrars not accredited could cause problems for you in the future. Also, don’t chintz on this part. Some of the cheaper registrars will register your domain under their own name! This makes it nearly impossible for you to switch registrars in the future, and very difficult to sell the domain (because technically, you don’t own it.)

If you’re on a budget, and someone has taken the domain you wanted, try thinking up some alternatives. There are still plenty of domains out there (although it won’t always be this way, so act now!) If you’re not on a budget and you really need a certain domain, try to track down some information about the domain you’re looking for. Start out by visiting the site to see if it’s for sale. If the site doesn’t seem to be developed, then get the owners information by doing a simple WHOIS search. Contact the owner and find out how much they want for the domain. Keep in mind that some domains aren’t for sale. You can try to push the owner to sell their domain, but if they’ve got plans for it then it’s probably not going to sell. If the domain you’re looking to buy has been developed, it’s usually not worth trying to buy it to make a profit, because the owner won’t want to part with it for a cheap price. If you’re not sure what a good domain name is, do some browsing on eBay (horrible place for sellers, not so bad if you’re looking for ideas or trying to buy a domain) or an auction house, like SEDO (much better for sellers and buyers alike). Going through an auction house is likely to find you some expensive domains, but it’s possible to turn a profit with them.  There’s more potential for profit if you can just get a domain through a registrar the first time.

Follow this guide pretty loosely, and you’ll soon have your very own domain.

Also, be sure to do some serious brainstorming before you go buying random domains that probably don’t have any potential! It will be hard to sell domain names that nobody wants.

Check back tomorrow for part 2, Optimizing your domain for maximum profit.

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