Domain Names are the names of websites on the Internet. For example, 'www.nafhat.info' is the domain name of this website.
To
purchase a domain name, one must make a purchase from a Domain Name
Registration Service Provider who is accredited with the ICANN (Internet
Corporation for Assigned Names and Numbers).
Nowadays, it has
become a very profitable business to acquire domain names and then
re-sell them in the Internet marketplace for a profit. This can be done
as a very lucrative business if one is not violating Cyber Squatting
Laws or Intellectual Property Laws.
To give a brief overview,
Cyber Squatting involves buying a domain name with the express intention
of extorting a higher than market price value from a prospective buyer.
Violating Intellectual Property Laws with regards to domain names
involves purchasing a domain name which has a name similar to that of a
person or a company that is well-known, again with the express intention
of exploiting the price value of that domain name in the market.
All
these activities are punishable by law and must be avoided, especially
if one wants to build a good business and reputation as an Internet
Domain Name Reseller.
Selling a Domain Name: Tips for Reselling Domain Names
Selling
a Domain Name involves a lot of research and hard work, especially if
you want to establish yourself as an Internet Domain Name Reseller.
It
helps if you compare domain names with property locations or real life
addresses. Obviously, an address of a particular location will help
define the price value of the property when it goes for sale. In the
same manner, names of particular domains will gain relative price value
depending upon their address. This means the names of your domains have
to be something that other people may want for themselves at some point
of time in the future.
As a domain name reseller, you have to
remain abreast of the latest developments and purchase relevant domain
names which you feel will become valuable somewhere down the line. Of
course, all this has to be done while ensuring that there is no
violation of Laws mentioned before.
Domain names expire after a
certain period of time, depending upon the time period that you
purchased it. So you may have to buy the domain name for a long period
of time so that no one else gets it in the in-between period. Or you
have to ensure that you renew your ownership before it expires. This can
be an investment, which you will have to factor into your costs while
reselling the domain in the future.
Another thing that you have
to consider which kind of Top Level Domain (TLD) you are purchasing.
Different TLDs tend to command different prices. For example a '.com'
TLD will often have a higher price than any other TLD. That is not to
say that the other TLDs don't attract high prices, but often the name of
the domain will help you determine which kind of TLD will attract more
price.
Once you have acquired the domain name(s) that you want to
resell, you must now decide on a strategy for how to resell those
domain name(s). Here are some tips which will help you formulate a good
plan for selling a domain name:
There are many sites on the
Internet which offer a variety of services which can help domain name
owners determine the prices that they can expect for the domain names
that they want to sell in the marketplace. Some sites may offer to front
for the domain name owners to act as go-betweens for a certain fee.
These sites may also offer domain name appraisal services which will
help you evaluate the value of your domain name.
You can also
sell the domain name on your own. One of the things you can do in order
to do that is to alter the WHOIS entry for Admin Contact to include a
'For Sale' in the details.
You might also consider adding a price
option (which may or may not include the word 'negotiable') in these
details instead of a standard 'Make Offer' statement. This will help the
potential buyer of the domain name to understand what your asking price
is before he / she contacts you.
Ensure that the contact details
that you provide in the WHOIS directory details are relevant and
up-to-date. Potential buyers must find it easy to get in touch with you
when they do want to purchase the domain you are selling. If you change
your telephone numbers or business e-mail id, make sure you make these
changes in the WHOIS directory as well.
Eventually you will be on
your way to create a portfolio of sorts for the domain names that you
own. The idea is similar to holding a stock portfolio. Some domains
might find buyers right away, while some domains will take some more
time to find buyers. You must be patient and persevere. Just like any
other business, this one has its risk factors too.
Be very
proactive with all your potential customers. Keep a business-like tone
with all your potential customers. Reply to all their mails even if the
initial offer that they are making is not what you are looking for. This
is because some potential buyers will contact you with a low price in
order to approach the table from the point of view of negotiating for
the best price.
Negotiation is always the key to a successful
sale - whatever you may be selling. Domain name selling is no exception.
Depending on the price value of the domain name, determine a price
value below which you will not sell it. This helps you negotiate
effectively with potential buyers of your domain name.
Another
idea is to market the domains for sale aggressively and properly. You
can include a list of these domains for sale in your e-mail signature
line or make a website or blog where you post links for these domains
for sale.
You can post your domain names for sale in forums,
message boards, search engines and directories. This is somewhat akin to
Internet marketing - the idea is to reach out to potential customers
where they are likely to see your listing and contact you.
Towards that end you also need to post your listing in relevant forums
and sites. For example a domain name connected with a name suitable for
the Heavy Machinery Industry would probably not find a potential buyer
in a forum that deals with Renaissance Art.
Last but not the
least, when you do find a buyer for the domain name that you are
selling, do take care to provide good after-sales service. Help or
assist him with the domain transfer process. This always creates a good
impression in the customer's mind. He / She won't mind coming back again
to deal with you if you have left a good impression.
Domain name reselling has thus become a lucrative business for many who are able to judge future trends on the Internet well.
By Madhavi Ghare
