Buy domains low, sell domains high – that is the basic principle at work for any profitable domain business. It’s the first thing you learn in capitalism 101, and there is no reason why you shouldn’t apply it to trading domain names. So let’s look at how to sell a domain at the highest price possible. So you may be wondering how to sell domains? Well before you get dizzy and dreamy with the profits let me remind you that the dot-com era is over, and so is the massive gold rush. The resale market now has become considerably weaker. Back then, owning a decent domain was enough. You’d get inquiries sooner or later. Today, you have to sell actively by listing your domain names in as many as marketplaces as possible. Also make sure your WHOIS records are accurate and up to date. You never know who will be trying to contact you.

Before you get down to selling your domain actively, you’ll need to have some kind of indication on the price you are ready to accept. Even if you are not going to make your expectations public, it is important to know your reserve price. Many people ask me how to sell domains, without even knowing the price that they want to sell it at! If you are clueless on the price, you can employ the services of a valuator who will appraise your domain name. Many domain name after-markets and brokerage sites will provide you with appraisal services, usually at an additional fee. Next, you need to find out if you’d be selling your domain alone or utilizing the services of a broker.

If you decide to go it alone, there are a number of things you could do to sell the domain. Your returns will depend on what distance you are ready to run. First, you could rely on the WHOIS data, or better still make a small Webpage indicating that the domain is for sale. You could also go ahead and develop a full-fledged Website and a community on your domain – and then place an ad on the site saying the domain is for sale. This approach should be a preferred way if you decide to sell without middlemen. Because once you have a site with visitors, you are already attracting eyeballs. Secondly, you may land up on your competitors radar and he when they decide to buy you, they will also be buying your content, user database, readership and other intangible assets. A tastefully furnished house is more valuable than just empty space. The same rules apply on the Internet.

If you decide to go via the domain-selling broker route, make sure you register yourself at their sites, study the dynamics of the auction system. For example, auctions for good domains tend to heat up just a few days before they close, and of course prices and the audience of the auction sites will vary. A US citizen may not find much use of a domain, but a UK-based citizen might. Bingo! You need to find a domain broker that is more popular in the UK, Sedo for example. Also many brokers take a staggered commission rate. The higher your domain sells for the higher the commission rate, which can get high as 20%. If you are confident of your domain and reserve price, you should probably prefer a broker who charges a fixed percentage.

These are the basic rules that everyone should keep in mind when wondering how to sell a domain name.

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