Sometimes domain selling business is profitable. If you want to sell domains that are not (no longer) used, you have the choice: Fixed price, VHB, or auction? How investing in domains pays off and what you should consider when trading domains.
Domain Reselling, Is That Really a Thing? Is it worth investing in domains and seeing them as digital assets and capital goods? Of course. Experienced domain managers and investors know that buying and selling domains is anything but yesterday. Domains are valuable assets that can generate huge profits. According to the Global Domain Report by the domain specialists at InterNetX and Sedo, the top 100 domain sales in 2020 generated $ 14.6 million. Premium domains and domains in high demand are regularly auctioned off for multi-digit millions. One of the major hubs of the domain aftermarket is the Sedo domain marketplace. Read here why it can be worthwhile not only for professional domain investors, how “domaining” works and what purchase options Sedo offers.
Basically, anyone can trade domains and thus sell and buy domains. These may be large agencies or companies that want to have many domains secured for their brands at an early stage, but only need a fraction of them and sell them again later. Or specialized domain investors who closely monitor and evaluate the market and invest specifically in domains from which they hope to generate increased interest and thus increasing value in the future. However, anyone who wants to buy and sell domains should deal with the subject of trademark law. Especially when it comes to well-known trademarks or other protected terms as a domain component, registration can already be legally tricky. It is therefore important to keep your distance from domains that could infringe the trademark rights of third parties.
According to the Global Domain Report by InterNetX and Sedo, double-digit .com domains achieve the highest sales prices in recent years. Probable high-paying domains are initials of well-known personalities or the first letters of big brands. In general, short domains with the TLD .com have the greatest potential. Multi-part domains with rather unusual words, on the other hand, are less likely to sell well. Anyone who can buy and sell a corresponding number of domains is not dependent on the top sellers with six-figure sums: If the margin is right, the amount also adds up to a respectable profit.
A remarkable finding of the report in terms of domain reselling relevance is that less than half of the registered .com domains are actually in use. This shows that many domains in the domain portfolios of domain resellers and investors are secured and are waiting to be resold.
Using the example of the extensive Sedo domain marketplace, the possibilities and important terms for domain sales can be listed.
- Domain auction: In a domain auction, a specific domain is sold to the highest bidder. The supply and demand of the moment strongly determine the outcome of the bidding round.
- Buy now domain: In contrast to the auction, the domain is sold at a fixed price. The buyer acquires the domain immediately with the purchase.
- Direct auction: Auction at Sedo with the greatest flexibility, without application phases or opening offers. The seller simply selects the start time and the desired minimum bid and you can start bidding.
- Marketplace auction with sales guarantee: If a domain for sale is added to Sedo as a “Submit a bid”, the domain can be released for auction with a sales guarantee as soon as the first offer is available. The first offer is then the first valid bid in the auction and often acts like a magnet to other interested parties.
- Domain parking: The temporary use of a domain until it is later sold, in which the domain is usually directly advertised for sale on the respective website.
- SedoMLS: Sedo Multi Listing Service lets a sales offer appear in numerous listings from third-party providers, such as the domain management platform AutoDNS, around the globe. In this way, more potential buyers are reached.
- GreatDomains auctions and themed auctions: Sales events at Sedo. GreatDomains enables high-quality domain names to be prominently placed. Thematic auctions, for example for certain keywords, short domains, or numeric domains, temporarily highlight certain domains.
Sedo offers by far the largest platform for domains for sale to more than two million customers worldwide and has been the first choice for domain investors, domain sellers, and domain buyers since 2001. Over 20 million domains are offered for sale by domain owners. The Sedo marketplace offers buyers and sellers a professional environment for domain deals.