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Reselling Domain Names: A Simple, Two-Step Business Model  


Domain Flipping Blueprint Articles


Reselling domain names is a business that has become quite lucrative and popular in recent years. Unfortunately, though, many people don’t realize exactly how risky this business is and live under the mistaken assumption that they can make a fortune overnight. However, this isn’t to say that you can’t make a profit from selling domain names, especially if you follow the steps outlined below, but it should serve as a warning for you to be careful and not jump in feet first without doing your due diligence.


The First Step to Domain Speculation Success: Buying the Right Domains 


Buying the right domain names is critical to your success. If no one wants the product you are trying to sell, then you aren’t going to make a profit. So, it is critical that you do your research and pick good domains.


There are many strategies you can use, including doing keyword research, picking brandable names and even business names (careful with this approach as you wouldn’t want to infringe on anyone’s trademark). No matter which approach you decide on, though, picking a good domain name is a matter of doing your due diligence and not so much an issue of luck.


The Second Step to Domain Speculation Success: Find the Buyers 


Obviously, once you have the domain name, you need to find a customer to purchase it. Again, there are many options open to you when it comes to selling your domain names. For example, there are dedicated auction houses where you can list your domains and interested parties will bid on them. This can be a lucrative approach, especially for domains focus on generic product categories as they will appeal to a larger number of buyers. Auction houses are great for such domains because if you have multiple customers interested in one domain, they can drive the price up and you could stand to make much more than you initially expected.


However, for domain names that include business names, for example, you are probably better off contacting the company in question direct and offering them the domain. First of all, only that company will be interested in the domain, so listing it on an auction site is pointless. Secondly, if you list it without contacting the owner of the company, you might end up stuck with it because not everyone visits auction houses for domain names.


As you can see, the business model itself is pretty simple. Buy the right product and then find the customers. However, it’s not quite as simple as it seems and if you don’t do your research properly and choose the right domain names, you stand little chance of succeeding.


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