Ten Ways To Make Extra Money From Home #8

Buying And Selling Domains

buy and sell domains

In an earlier article I talked about flipping websites for a profit (buying websites cheaply then selling them on once improvements have been made) and how this can be very lucrative.

But if that sounds too technical for you then there is a simpler method – buying and selling domain names. The way it works is you buy a domain name for a low price then sell it on after some time has elapsed, hopefully for a sizeable profit. This is not a new idea, it’s been around for a few years now but although the profits are not as mind boggling as they have been in the early days (hotels.com for example sold for a whopping $11,000,000 or £8,450,000) there is still money to be made here.

How Do I Find Domains To Buy And Sell?

Now, in order to make a profit from domain names you need to research what is popular now and identify possible future trends. The idea is to find out what is likely to be attractive to a business in the future when they want to cash in on these trends. A good place to start is Google trends; this will give you up-to-the-minute information on what’s trending right now. For keyword ideas try wordstream.com or keyworddiscovery.com 

keyword under magnifying glass

These sites should give you plenty of ideas for what’s currently trending and what keywords are popular relating to the trends you find. It helps if you’re searching for keywords in a subject that you are interested in or have experience of (gardening, DIY, sports) as this makes it easier to identify trends. Once you have some ideas head over to a site like godaddy.com and see if the domain name you’ve chosen is available. If it is, buy it and leave it for a while – anywhere from a few days to a few months to see if it increases in value.

So This Is A Long Term Strategy?

On the whole this is a long term strategy and it requires some patience on your part. But it might be that a particular domain is suddenly red hot and you can sell it on after only a few days and still make a good profit. But since most domains can be purchased relatively cheaply – as little as 99 pence in some cases – so if you have a few sitting around waiting to be sold you haven’t spent a lot of money and are desperate to try and recoup it.

man feeling relaxed

As well as looking for trends you can also look for domains that are about to expire. All domains have a life span, varying between 12 months and 3 years, depending on how long the owner needed them for. Sometimes the owner allows them to expire as they no longer need them but often the owner has simply forgotten to renew their domain. In this case, you can contact them and ask if they want their domain name back. If they do then you can sell it back to them.

Does This Work Locally?

Absolutely! If you buy a domain name like (for example) manchestercakecompany.co.uk and you know of anyone starting up a cake shop in your town then you can contact them and ask if they are interested in buying that domain name. If the .com or .net extension is also available then you can offer these as well.  This also works for business owners who have a .co.uk extension; you can offer them a .com or .org extension, which increases their chances of being found by the search engines if someone types in .com instead of .co.uk by mistake. This is a fast and simple way to make a profit.

So How Do I Sell The Domains?

List your domain on sites like 123-reg.co.uk, sedo.com or namecheap. This is very easy and straightforward to do and all of these sites have full instructions on what to do. You don’t need to be a technical wizard and once the domains are listed you have nothing left to do but sit back and wait for them to sell!

2 men in coffee shop

 

 

 

 

 

I hope you have enjoyed this article. Next time we will be talking about selling on eBay.

 

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