Going Once, Going Twice! How to Succeed in Domain Auctions

Mastering Domain Auctions: A Comprehensive Guide to Buying and Selling Domains

Domain auctions offer a fantastic platform for buying and selling domains. Elevate your domain auction experience with this detailed guide.

In the past, acquiring a domain for your business could be reasonably affordable, often within the $10,000 range. Today, however, domains can fetch much higher prices as every company recognizes the value of owning multiple domains. This shift has transformed the domain auction industry into a lucrative marketplace.

Whether you have domains to sell or are looking to acquire new ones, this guide will help you navigate your next auction successfully.

How to Buy Smarter

Websites like Sedo.com, SnapNames, and GoDaddy Auctions allow domain owners to list their domains for sale. You can also sell domain names on eBay if you’re adept at promoting your listing. Flippa.com offers listings for just $9, with a 15% commission on sales.

If you’re unsure of what to buy, focus on high-demand niches. Look for simple, memorable names like “sandwich.com” or “computer.com,” which are coveted by many leading companies.

Additionally, search for expired domains on platforms like FreshDrop.com to explore the latest inventory. Investigate why certain domains were dropped; you might find valuable URLs that an owner neglected to renew.

Master the Bidding Process

Before placing a bid, evaluate the potential return on investment for the domain name. Tools like NameBio.com and DNSalePrice.com can help you compare prices. Keep in mind that “.com” domains generally sell better than those with alternative suffixes.

If you win the bid, contact the seller through the auction platform, which typically facilitates communication. If you lose the bid, stay in touch with the bidder; transactions can sometimes fall through, giving you a second chance to acquire the domain.

For a domain you really want, visit whois.com to identify the current owner. You may be able to reach out directly and make an offer to someone who is simply sitting on an unused URL.

When assessing a potential domain, check if the site is fully developed. A well-established site will command a higher price, while an inactive URL may simply be a remnant from a previous owner or a spur-of-the-moment purchase.

Sell Like a Pro

When you have a valuable domain, it’s crucial to list it on the right platform. Selling on a site with low traffic or where domains sell for cheap can be disappointing. Since most transactions are binding, this decision greatly impacts your sale’s success.

Utilize a valuation tool to help determine a fair asking price. The age of a domain can significantly influence its value. If your domain generates revenue, treat its valuation similarly to that of a small business.

For high-value domains, consider using an escrow service to protect both yourself and the buyer during the transaction.

The Growing Value of Domain Auctions

The demand and value of URLs at domain auctions are projected to increase year after year. As more people seek to capitalize on keywords associated with products or valuable brand names, the worth of each domain will continue to rise.

For one of the latest examples of a seven-figure domain sale, check out our coverage.