The definition of domaining is the business of buying, selling, developing and monetising internet domain names, not for primarily using as a website, but with the goal of profit generation through resale. Domain Selling requires patience, skills and some time. You 
must also be aware of the latest news and events in the domain selling world, as well as preparing your own strategy. In this business, you buy a domain because you believe you can sell it for a higher price, or you use the domain traffic to create some value or a stream of income.
This internet business does present opportunities to the likes of you or I, but insight and your timing are essentially critical. Almost everyone in business is aware of the value of the right domain name, and domain names can be valued at hundreds or even thousands of pounds to the right people. Some prime examples of record breaking domain transactions include:
There are plenty of websites dedicated to the buying and selling of domain names, such as godaddy.com, moniker.com, SEDO.com, Afternic.com and GreatDomains.com…and they are just a few!
So we’ve already established that ‘people’ will part with a lot of money for the right domain name because, to be honest, every business is aware that business image and where a business is found will be the make or break of them. A business needs to be found and remembered by the right people in the right places! Being remembered by potential consumers is key to business success, and this is another reason why one word domain names are in such high demand. Although many people are looking for one word domain names, perhaps you could look for two word domains or use simple prefixes (such as anti-, -ly, un- or auto-) in front of your keywords; for example, we will use cash as a keyword example, and auto as the prefix, and we’ve got auto-cash. Whatever method you use, just remember to ‘Keep It Simple, Stupid’ (K.I.S.S) and use keywords so it sells to the industry in hand.
How to value a Domain
As with many purchases, there can be a lot of choice and hype over products so you need to remain open minded and rational, but more importantly, avoid falling in love with any particular domain. Good domains are easy to remember and type, and if you don’t take your domain seriously in business, then you’re likely to pay for the mistake!
Of course the value of domains is a matter of perspective because it’s as valuable as the potential purchasers or seller deems it to be. Many sources believe that a good generic domain that gets typed into the URL address box (often referred to as a ‘traffic domain’) can be worth up to 10 times a business’ annual revenue! To start Domaining you will simply just need to ‘park’ your domain and create an HTML page to promote the names availability, which most domain registrars provide free tools for.
Other domain names can be increasingly difficult to value, but if you can categorise your domain you should be able to find out what other similar domain names may have sold for. This type of knowledge is invaluable and it will hold you back from expecting too much or too little for your domain.
There are two types of domain names:
Brandable Domains are unique and usually involve a company name, but they don’t receive much typed in traffic. Generally any buyer will hold the upper hand when it comes to price because of the lack of other potentially interested buyers. Really you should look for short and memorable names which are easy to pronounce, perhaps one or two words. Descriptive words work well, for example, WordPress.
Traffic Domains are usually generic domains which do receive a lot of typed in traffic. When you’re looking to acquire one of these domains, firstly ensure the traffic is genuine as oppose to hits created by bots’ or click farms, and you should also check that no trade marks exist with the name; once you have done the above, you should be assured that a high amount of typed in traffic will lead to high revenues, and therefore you can value that domain at up to 10 x potential annual revenue.
Your negotiations for buying and selling domains
Make a list of domains that are of interest to you. It’s advisable to get a few domains listed together as not to limit your choice, and to try avoid falling in love with a particular domain because by doing this you will already have given an advantage the seller (assuming someone has already brought it). By keeping your options open, you’re more likely to be able to walk away if a price isn’t right. Please remember never to agree to the first price offered, whether you’re the buyer or the seller. As a seller you will need to have the generic domain name that someone just can’t live with out! However, if you’re the buyer in this situation, you of course would be at the power of the seller, and if they know it’s valuable, they will make you pay!
The alternative option for buying and selling domain names is through a Domain Brokerage Service. These services can be beneficial if you have a lack of time to carry out negotiations or searches, and these companies are already established which means that they have wide existing audiences – and this is great for awareness opportunities.
In conclusion, the domain name market is very open to buyers and sellers, but the key to selling domain names would be to do a little research, a few brainstorms and think innovatively! Remember that real money making domain names may be few and far between, but there are still diamonds out there being found, perhaps you might think of the next million pound domain? Here are just a few summary tips for you to take away from this:
- Research the value that other similar domains have sold for
- Decide on a reasonable price and create an HTML page to advertise the sale of your domain name. (Most domain registrars offer free HTML pages without hosting fee costs)
- Update your WHOIS information so others are sure your domains for sale
- Ensure you contact information is correct and as a matter of courtesy, reply to all enquiries whether they’re of interest or not
- If you domain is not receiving the attention you’d like, why not try asking the experts on discussion forums? You can also enter your URLs to Search Engines to increase traffic to your page.
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