Some people buy one domain for a website and then never buy a domain again. However, buying domains, or “domaining”, as it is called, is a business in and of itself. Some people make thousands if not millions of dollars purchasing valuable domain names and then reselling them to others who want to start a business with them. If you compare the digital world with the physical world, domainers would be the real estate speculators buying and selling the most valuable property for people wanting to set up houses or businesses.
How can you make money simply by buying and selling domain names?
1.) Pick timely topics. If you know a certain technology is about to break, it’s to your advantage to own domains that relate to that topic. This could pertain to movies, music, business, or any topic you understand the most.
2.) A domain could also be something random. Google, eBay, Twitter, Flickr, none of these words existed until they were launched as sites. Short, easy to spell and remember domains can be very attractive to the right buyer.
3.) The most cost efficient way to do this is to purchase domains in bulk. NameCheap offers bulk domain registration on our website. This buys you “insurance” so to speak, in case some of your domains do not take off.
4.) Although .com domains are generally the most profitable, it is advantageous to own all the extensions of a domain such as the .org, .net, .biz etc., as this would prevent someone interested in your domain from buying one of these extensions instead.
5.) Instead of simply parking on a domain, it is useful to list your domain in a marketplace setting. NameCheap features a domain marketplace where you can list your domain for free and only pay when your domain actually sells. This is a more proactive approach to selling domains, as those shopping for the right domain can search by topic.
6.) Just as in real estate, some domainers “flip” domains. Although you can’t fix up a domain the same way you fix up a property, it is possible that you know a better way to market that domain that the original owner. Purchasing this domain from someone else and reselling it can be very lucrative if you can find the right buyer.
Relative to buying and selling real estate or stocks, domaining can be a cheap and very easy way to make extra money for yourself. By understanding the online space, you can potentially make a six or seven figure income with purchases that take minutes to make.