It is imperative to be familiar with the basics of keyword research when using this method. I would recommend that you read my article here, if you are not. The SEOV of a domain is not enough to guarantee a successful sale. Researching the commerciality of the keywords is mandatory. CounsellingAdvice.com is way more valuable as a domain than MarriagePapers.com. Thinking with the end user in mind is crucial towards successful flipping. What is a person with a domain named ‘marriagepapers.com’ going to sell to customers? Are the people searching for ‘marriage papers’ potential buyers? Remember, an expensive premium domain is something that a large company will be after, not a poor kid who is building his first little niche site and hardly has any money to pay Namecheap’s registration fees.
Here are the results of my search using the example in the screenshots. I have found two interesting domains. Nothing to be too excited about. In fact I have not registered either of them, since I have a few I need to unload that are in the same price range. I guess that the first who reads this can take them. They are relationshipissues.net and weddinganniversaries.net. Both are valued by Estibot at $270 each. Selling them for $50–$100 to other domainers should be actionable. It is not difficult to get decent names using this method. I would not start jumping though. The toughest part is not finding low-end premium domains; it is selling them.
METHOD II: Character Domains
The aim is to find dropped two and three character domains that become available for registration. This method is a bit tougher than the other one.
*First, go to Online Text Tools and enter all the twenty-six letters of the English alphabet as shown. Generate all three-letter combinations.
*Visit Namestation and paste your list. You can only paste thousand names at a time so you will need to split your list into several parts. You can do this by pasting it in Microsoft Excel and copying thousand rows at a time. It is somewhat boring but this is the easiest way to do it.
You can repeat for two-letter, three-letter, two-number and three-number domains. You will get about 18,000 results for three-letter domains. So it will take a lot of copy and pasting and the chances of finding anything are very slim. Since currently all Com, Net and Org domains are taken, not to mention that even the other worthless TLDs seem all registered, anyone who wants to engage in this kind of domaining may have better luck trying to pick them up at registrar or drop-catcher auctions. Like I said, I do not feel this would be a good move for a beginner.
Step 4: Sell The Domain For a Profit
There are two ways to sell a domain. As can be seen, domaining is an art that allows a lot of creativity and choice. A domainer may either try to sell to end users directly or to other domainers. Selling to end users is not something that thrills me. Many agree that cold-calling brings great results, but although Skype calls are cheap to anywhere in the world, I cannot see myself calling people in other countries to offer to sell them a domain. On top of that, I suck on the phone; I hate using the phone. I hate even talking to friends and family on the phone, let alone perfect strangers! I would rather go door-to-door selling vacuum cleaners than doing this. But if you are good at cold-calling, by all means, know it is the strategy that proves itself to be the most effective.
Selling for cheap to other domainers is a better option for me. Patience is required, but much less work is involved and it is more systematic. However, there is one exception: Trying to sell domains to the owners of the other TLDs for the same domain. One such example is swaplinks.org, a domain which I own and I am trying to sell. The Com version is being sold by a huge corporation and they are asking $120,000. Perhaps seeing that I am selling mine for $100, they may wish to buy it for themselves to avoid an unbeatable competitor. The contact information for the owners of other TLDs can be obtained from who.is. I did get a reply to one of my emails using this method, but I accidentally mis-described my domain as ‘six-year old‘ when I should have said ‘used for six years and freshly registered‘. I did not do it maliciously, but rather because I was not familiar with the jargon. Evidently the domainer lost his trust in me and decided not to buy it. Google can also help finding prospective buyers. However, like I said, I prefer not to waste much time looking for end users and list domains on line.
There are three marketplaces that are well-worth considering:
Afternic–Despite their very slow and hard-to-navigate site, Afternic is a true premium marketplace specializing in quality domains. Listing domains is free, but there is a fixed fee of $60 to pay for standard promotion and $120 for premium promotion. The fee increases for the more expensive domains. The minimum amount domains can be sold for on Afternic is $250. Sellers have the option to set a buy-now price and, at the same time, allow prospective customers to make offers on their domains. The company was recently bought by Go Daddy likely making their position in the market even stronger.
Sedo–The most popular marketplace, Sedo allows sellers to list domains for free. They have final-value fees just like Afternic do. These fees range from 15% to 20% with a minimum fee of $50. Some extensions’ minimum fee is $200. It is possible to set a buy-now price, as well as allow customers to make offers or choose both options together. Sedo also provides other paid services such as featured listings and free domain parking.
DN Forum–This is the best forum to sell domains on, and it comes in handy to showcase Afternic or Sedo Auctions, as well as make private deals with the vast audience that the forum enjoys.
My strategy is to list on Afternic with a buy-now price and list also on Sedo taking only offers. In this way, I do not risk finalizing a domain name sale on both marketplaces, which would make me end up banned from at least one of them since I would not be able to complete the sale. At the same time, I get maximum exposure for my domains, and nothing stops me from seeking private deals on DN Forum or elsewhere.
My experience on eBay has taught me that a large inventory of items is needed to achieve a constant flow of cash. As such, the true potential of domaining can be appreciated once the domainer has a large portfolio of domains available. Starting with 8–10 domains is the minimum required. Of course, buying two hundred domains before having sold a single one, is not that good of an idea either. Maybe it is a daring one, but let us just say, too daring for my tastes. Investing $80–$100 to begin with and reinvesting all the money obtained from sales into new domains may be a great plan. To ensure success, it is best to take time to find good domains and invest in ones that are valued above $500 by Estibot and have good commerciality at the same time.
Domaining can be very lucrative and is far from being dead or obsolete. Success is based on the quality of the domains, pricing them reasonably and sales-strategy. As with any other money-making-on-line activity, it takes time to master and requires patience and dedication. Experience comes with maturity and so do sales. As I make my own progress with this activity, I will keep you updated with new strategies and information. Stay tuned!