Buying and Selling Domain Names Profit


Buying and selling domain names for profit is one way of earning money online, and also a strategy for building your retirement fund. So read here what you can do and how to make a business of it.

In the early days of the Internet it was easy to find a domain name for a site that would have one or two words only. Nowadays this is very different. From my own experience, finding a one-word domain name now is possible only if you go for a fun name.

What is a domain name and what is the difference between a domain and a website?

If you plan to build a site, you will need a domain for it. You can think about this like building a house, your house is equivalent to the site. The house needs an address, so the address for the house is similar to the domain for the site.

You can go to places like Wikipedia to read about some more exact definition, but more or less this is the essence of it. The domain will be a part of your URL. But what is an URL? These letters mean Uniform Resource Locator (URL), this is colloquially termed as a web address, you have more about it also on Wikipedia.

Best places to buy domain names for sale

If you want to trade with domains, no need to think about building your own sites. But you would still want to think in terms of niche selection. Think what other people would love to have as a domain name for some specific niche, you are there to help people and if you can earn something in the process that this is good for both sides.

There are many good registrars around. In the past, I have used Namecheap, Godaddy, and Wealthy Affiliate. But you might want to check also Hostgator, Bluehost, Domain, DreamHost, etc.

Most of them have a good domain search tool. Below you can see what I have at Wealthy Affiliate, so follow this link to check it from your side. You will be asked to register, but this is free no worry. Then search around, the mentioned tool you will find under the options SiteDomains, see the picture which shows this tool and several others as well:

SiteDomains and other tools at Wealthy Affiliate.
SiteDomains and other tools at Wealthy Affiliate.

You can also register it immediately at the same place, but this part is not free of course. See how it works, I used the name of this site as an example, so it is not free and it shows me some alternatives:

SiteDomains tool at Wealthy Affiliate.
SiteDomains tool at Wealthy Affiliate.

For any search term you will have a number of suggestions as alternatives, so you might find some really cool domain names, and you can register them immediately.

Where to sell domain names for profit

There are quite a few places around where you can sell both sites and domain names. The one best known to me is Flippa. The reason is that once I added a few of my sites there for sale. This was in the time when I was buying a house, so I was thinking of selling several of my sites instead of having a loan from the bank.

Eventually I gave up, but I became a but familiar with what they were doing. In fact, they were contacting me a few times after that asking if I would sell some of my sites.

So if you want to sell some of your domains this is the place to go, those are professional brokers. They take a few percent and you also have to pay some small fee for posting the property (domain or site) for sale. But you can be sure that all will be going smooth so it is worth the money.

How much can you earn by selling a domain?

I would say there is no rule. It depends on many factors, and most importantly it depends on the buyer and how willing he or she is to invest in a certain domain name. But short and memorable domain names can bring a lot.

Here is one example from the site hosting and online business teaching platform where I host my own sites. They have a forum there so members write about various things related to online business. Recently, one person shared her experience about selling a domain. She did not put it for sale, it was a parked domain and one day she just received an offer.

This can happen if you have a registered but not used domain. So when somebody is trying to find a domain he or she can be shown your domain and the person will be offered to put a price. If this happens, the broker will get in touch with you.

This is exactly what happened in this story. She was offered $6000 for a domain that she purchased two years earlier. So she was paying her fee that was $23.76 for two years. From her post in the forum, it appears she did not think twice, and she sold the domain for the offered price.

But can you really make money buying and selling domain names for profit?

If you have read the story mentioned above, you might conclude that you can indeed make a good profit. But it may not be so simple, so think about this a bit.

That same person writes that she has 500 domains collected over many years. She has been in the business for decades, so no doubt she has many good 2-word domain names. Occasionally it is possible to make such a great margin when a good offer comes.

However, registered domains cost money. How much? Typically this is around $14-15 for com and org domains, you have seen this in the screenshot which I shared above. But you can find them cheaper if you do not pay extras like privacy, etc. So take $10 per domain/year, the math is simple, her costs are $5000 per year.

Of course, you do not have to collect them in such numbers. It is better to search for good names, register them, and then try to sell as soon as possible. The point is, you can try and see how it goes.

Thank you for reading. Let me know if you have questions, there is a comment box below.


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