29 Nov 100% ROI: The Economics of a Domain Name Resale

Yesterday, we posted that we are currently using Sitepoint.com to sell a domain name.  Today, we encourage you to take a look at your domain inventory… and sell!

The whole dot com boom really made people skeptical about investing in the net.  But I can tell you, done strategically, and the domain name business can be a great paying hobby, or a full-time profession.

The most ever domain names I had at one time?  about 150.  Man, the registrars made great cash on me.  But honestly, lots of them were acquired from many different “FREE” or reduced rate registrations.  This meant that I caught some deals that were free for the first year, or maybe just a dollar or two.

But think about it.  If I had resold about 10% of those names for about $50 a piece, then I would have generated capital to run other parts of my online business.  (Remember, all it takes is a seed!)

Well, this post gives reasons WHY:

• you should consider selling some of your inventory (domain names)
• you should ALWAYS be looking for new ones to acquire

Here we go….

1. Cost:  A domain name costs, generally less than $10 at most registrars (except for DOT TVs).  PS… I like GODADDY, The World’s Largest Registrar
2. Economics:  Your “Break-even” on a $9 domain name is… YOU GUESSED IT!  $9!

This means that if you buy the name for $9, then doing some minimal work(maybe a few hours) could boost the value of the name up!

In our post of selling Difluprednate.com, we bought strategically important names and then placed a simple blog on one of them to drive SEO traffic.  During that time, we also posted under 10 posts off and on… With fantastico hosting on hostgator.com, we are able to launch a blog within minutes!

So, the keys to the domain name resale for PROFIT, is going to be:

1. Purchasing a name that is desirable in some niche.  Don’t buy s0yasud8fua-23.com and expect to have a winner….
2. Expect to add at least a landing page (Your own!).  I have not made much money from Sedo.com in the past nor other parking packages.  Use your own traffic!
3. Gauge your traffic from SEO. You may not get that much traffic at all… but determine where the page traffic is coming from.  This will give you sales opportunity.
4. Steer your content towards your proposed target demographic for sales.  In other words, if your site is about dogs, then steer content towards dog lovers!  

Our auction listing Sitepoint currently has 4 days left.  Just 1 day into the auction, it has 3 bids!  Via those bids, we have broken even and surpassed our domain investment and time to create the site.

I am hopeful that towards the end of the auction, we will continue to get higher bids.

Good luck on creating your domain name garage sale!