When a website gets launched, its name is registered for a period usually from 1 to 10 years. Upon expiring, the name is put on hold before it gets deleted. This is how a domain expires.
There are two reasons why companies or individuals would buy expired domains from you. One is that the company or the person running the website was too careless to have let the domain expire. The other is that another company, in the same field would want the name for their own business.
WHO SHOULD TRY BUYING AND SELLING DOMAINS
If you find buying and selling an exciting business model and you like scouting for cheap products to make a profit from, then this type of business is right for you. Buying expired domains take a lot of patience and attention to detail if you want to make the right purchases.
HOW TO START YOUR EXPIRED DOMAIN BUSINESS
Just like every seller, you need to know where to find your merchandise. There are dozens of expired domain sources. Some are free while others require a membership fee that can be as low as $99 annually. Some of these sources are www.wehavethem.com, www.deleteddomains.com, and www.expireddomains.net. You can buy newly deleted domains or bid on them for as low as $10.
The key to this business is traffic. You don’t just buy every domain you can get your hands on. If you want a sure deal in the near future, you can sign up with www.alexa.com for a web analytics toolkit. You need to watch out for websites that generated significant traffic during previous months. Most of the time, their previous owners would want them back.
Set your eyes on the prize. Websites like www.pool.com and www.snapnames.com automatically grab expired domains that you have identified. For a small fee of around $60 to $70, you can secure your investments.
Once you have your merchandise, you can start selling them on auctions and forums like TrafficPlanet.com, DNForum.com, GoDaddy Auctions, Digital Point Forums, Flippa.com and Sedo.com. Some of these websites allow you to buy domains as well.
There are two ways to sell domains. Those that you think have lower value can be sold in packages separating them from your potential gold mines. As for your gold mines, patience is a virtue that can help you earn a fortune just like Jon Shultz who owned ebola.com for 7 years and sold it to a Russian company later on.
EARNING POTENTIAL OF AN EXPIRED DOMAIN BUSINESS
Expired domains come at varying prices from $10 to $100. In a business sense, be sure to check the analytics, know the traffic and try to understand the potential of the name. There is no way of measuring the average profit that expired domain sellers make but a good way of looking at it is that Jon Schultz made $200,000 just by selling ebola.com.
MAKING A PROFIT FROM EXPIRED DOMAINS
Buying expired domains is the same as investing money in stocks. Buy low, sell high. Just like in every business, a slow start simply requires vigilance. If you fail, fail quickly, learn from your mistake and move on to the next expired domain. To learn more about buying and selling expired domains, check out the blue prints below.