Basically a domain name is nothing more than a name. When selling domain names, you transfer nothing but ownership, or the rights to the domain name. As a rule, you can freely trade any domain name, provided that there is no trademark or name infringement. Generic domains such as cars.com or computers.com are not protected. Anyone can reserve such a general domain name if it’s not already taken.
Earn money with domain names in 2020.
If you want to make money with a domain name, you must of course know what makes a domain attractive. Domains are attractive for traders if they are indexed in Google and have a high ranking in the search engine. Other SEO aspects also play a role, such as the back link profile or the search volume of the keywords that appear in the domain name. But the appearance can also have a positive influence on the value. Short, concise and easy to remember domains are therefore very popular. The domain name extension also plays a role. Top-level domains (TLDs) such as .com, for example, are highly sought after.
In a BBC documentary you can see how domain trading works and how so-called ‘Domainers’ earn millions.
What is a premium domain name?
A premium domain name is a domain with an attractive or coveted domain name, the value of which is considered to be particularly high. But what exactly is a premium domain name and why is it so valuable?
There is no clear definition for the term “premium domain” that determines exactly when a domain name falls into this category. Whether an internet address applies as such is ultimately determined by the registry responsible for the relevant top-level domain. A domain is usually considered a premium domain name if it meets a few of these characteristics:
- The domain name is short or striking and easy to remember
- The domain name contains keywords that have a large search volume in search engines
- The domain name contains a term that reflects economic or social trends
- The domain name is suitable as a brand name (but is not yet protected as a trademark)
Pricing policy for premium domain names
Another feature of premium domain names is the price, which is higher than the standard price for a domain. You can therefore earn more money with it. Usually the costs of a domain are linked to an extension. The registration of a .com domain name therefore costs about the same for most internet addresses. However, since the value of a premium domain name is considered to be particularly high, they are considerably more expensive. The price is determined by the responsible registry. ICANN is, for example, responsible for .com domains, among others. The cost of a premium domain name also depends on the domain name itself. Big differences are not uncommon here. The costs of a domain name can also be subject to fluctuations: if a domain name gains importance or loses relevance, the seller can earn more or less money with this domain name.
Premium domain names are certainly more expensive than regular domains, but it can be worth buying for both website owners and domain traders. A concise, popular and easily remembered domain name receives considerably more attention and increases the chance that visitors will visit the website again. For example, a premium domain name can quickly lead to a larger number of visitors to a website. All in all, these domains have an extremely high marketing potential, which distinguishes them from the usual domains.
Do you know what the next trend will be or which terms and names are suitable as potential domain names? Then register that domain name with the correct TLD. Do a domain check and see if the domain name is still available.
Trade in domain names
A domain name trader usually searches strategically for lucrative domains and their extensions. You can register available domains that have a high sales potential or you can buy existing domains for later sale with a profit. Many domain traders use backorder providers. These services automatically register a domain when it is released or deleted (so-called expired domains).
How do you buy or sell a domain name?
Domain trading takes place in various ways. The registrar of a domain name is usually not anonymous, so you can contact him or her. Of course, domain owners can also act actively as sellers and offer their domain names. We list the three most common ways to sell domains.
The buyer approaches the owner directly
If you find out that the desired domain has already been assigned, you can try to contact the domain holder. However, given the new privacy legislation on domain names, it is very difficult via a WHOIS database. If the domain is connected to an existing live website, then the best thing you can do is to fill in and send the online contact form on the website in question. If you approach this contact on your own initiative, you can buy the domain names directly from him or her, if the person agrees.
The owner actively offers the domain for sale
The situation is different for domain traders with commercial intentions. They usually indicate that the domain name is for sale and put their contact details directly on the website that is linked to the domain or on another site that offers domains. Sometimes the owner also looks for potential buyers and offers them the domain name.
Domain trading via a marketplace
The third option is domain trading via an official marketplace. An example is the international online service provider Sedo, which brings domain owners into contact with potential buyers. The platform is a kind of domain broker and sometimes requires high costs for mediation.
The most profitable domain sales
Almost 138 million .com domain names have now been registered. It is clearly the most popular extension. Few figures are known about the average selling price for .com domains, some traders speak about 3,000 to 4,000 USD. Very high domain sales worth of millions of dollars do happen, but it is exceptional.
Over time many .com domain names have already been sold for millions of dollars, especially when it came to big brand names. Here are some examples:
- LASVEGAS.COM sold for $ 90,000,000
- CARINSURANCE.COM sold for $ 49,700,000
- INSURANCE.COM: 35,600,000
- PRIVATEJET.COM: 30,180,000
- VOICE.COM: $ 30,000,000
- and 360.COM was sold for the price of $ 17,000,000 </ li >
Is domain name trading profitable?
Some of the prices mentioned above are amazing, but as mentioned, such amounts are exceptions. Most domains are sold (if they are can be sold) for amounts with two or three digits. Years ago, anyone could easily register a domain name with everyday terms without trademark rights and thus earn a lot of money by selling it. But these domain names, which now sometimes raise huge sale amounts, have of course been granted for a long time and are now regarded as premium domains. Anyone who wants to earn money today with domain name trading must have a very good sense of future trends.
Explanation of some terms
The DNS (Domain Name System) is one of the central services in IP networks. Simply put, a DNS server links the domain name of a website to the corresponding IP address, so that the URL is directed to the correct web server.
A registry, also called NIC (Network Information Center) manages one or more TLDs in a DNS. These offices provide the DNS servers and Whois servers with the contact details of the owners. The distribution of the domains themselves does not fall under the responsibility of a registry, but is carried out by a registrar.
Registrars are companies or organizations that handle the registration of domains. Depending on the TLD, the accreditation of the ICANN (Internet Corporation for Assigned Names and Numbers) or a registry is required.
I assume you now know how to earn money with domain names and I hope this article can help you with that. Good luck!