Apr 05 2009
How To Cheaply Buy A Profitable Domain Name
This article is guested post by Ryan.
A good domain name can easily fetch between $5,000-$10,000. Great domains, such as diamond.com, casino.com and beer.com, in fact, have sold for well over $1 million. Safe to say, there’s money to be made in domain flipping. The question becomes, “how to pick a profitable domain name?” and more importantly, “how to get it for cheap?” The truth is, there isn’t a clear solution. Buying and selling domains is more art than science. People vary in their style of approach. I will, nevertheless, lay out a few golden tips to help you spot a good domain name, and try to get it for cheap.
Tip #1 – Your buying criteria MUST include Length of domain, TLD/extension, and marketability.
Our aim is to cheaply purchase a quality domain name and then sell it later on for a profit. In order to do that, you must first understand a thing or two about domain valuation. What makes a domain great? This depends on a number of different factors. The most important ones, however, are length of domain, TLD, and marketability. A premium domain should be short to medium in length. Although, there are some exceptions like Internet marketing strategies, or “Internet marketing consulting dot com”, which may be worth more. The longer a domain though, in general, the less appealing it becomes. So, keep this in mind when purchasing domains.
Your domain name’s extension/TLD is extremely important for valuation and traffic purposes. “. Com”, “.net”, and “.org” are the most desirable. They’re worth the most. When looking for a quality domain name, always shoot for either a .com or .net. I personally wouldn’t buy anything else.
Lastly, marketability is important. How do we measure this? One way is to type-in the domain in Google and observe the number of search results. This gives us a rough idea of demand. Another way is to analyze your competitor’s domains. Do they share something in common? Look at your domain’s search volume as well. Keyword-rich domains usually have the potential to get decent type-in traffic.
Tip #2 – Actively scout expiring/expired domain names for low bid values
Looking for a shot at a great domain for dirt-cheap? Expired domains are your best bet. This isn’t any cakewalk though. The expiration process on a domain is typically 45-75 days, with a renewal, redemption and pending delete stage before the domain actually “drops” from the registry. Even then, professional drop catchers such as pool, snap names, and enom will in all likelihood grab the domain before you do. Furthermore, there are literally thousands to sift and choose from. The process is time consuming and without guarantee. So, here’s my suggestion. First, download a list of expired domain names from pool or snapnames for free. Then, use dropshark to quickly and easily find quality domains in the list, since the majority will be a bunch of crap anyways. In addition to the above criteria, consider domain age, page rank, and current/past traffic levels in choosing your domains. Also, if you’re cash-strapped, try using free domain appraisal services such as estibot.com and domaintops.com for a “very rough estimate” on the domain value.
After you’ve selected a handful of quality expired domains, pick a professional drop catcher, such as pool, enom or snapnames and place a backorder through them. If you really want to increase the probability of capturing an expired domain, though, back order at all three-drop catchers. After that, sit and wait. The successful drop catcher will notify you, usually by email, saying that they captured your domain. Now, if you are the only one bidding, the domain should go to you. But, this is rarely the case. Most good expired domains usually have multiple bidders. So, your domain will go into auction. Once this happens, closely track the number of bids. Pool doesn’t disclose this info. Snapnames, however, does. This tells you how competitive an expired domain is.
Also look at the bid amount. Have a bidding strategy in mind. Hopefully, if all goes well, you shouldn’t have to shell out more than $200-$350 for a good expired domain. But, there’s no guarantee. In some cases, you simply won’t be able to outbid and may lose the auction. Either way, it is your best shot at a great domain for a cheap price. Good luck and happy hunting!
Tip #3 – Express your buying interest by directly emailing the domain owner.
Like a domain and not sure how to get it? Well, try directly emailing the domain owner. Simple as that. Now, don’t be unrealistic. If the domain is properly developed, meaning that its pointing to a full blown website. This approach simply won’t work. But if the domain you want, is domain parked and has been that way for a very long time. Then, there’s a good chance the owner may be sitting on it, waiting for the right offer. Look at domain age and previous versions of the website at archive.org as well. If there’s been little to no activity over the duration of the domain life, the owner may have abandoned it. Also, see if the domain has been listed for sale. If so, for how long and in how many different places. The longer a domain goes unsold on the market, greater are the chances the domain owner may be willing to negotiate on price. But, this is just my opinion.
About Ryan :
Ryan DSouza is a financial analyst, fiction writer, and part-time Internet marketer. His new blog, Internet marketing strategy offers free tips on SEO and ezine advertising.
