Can You Make Money Selling Domain Names?
With so many ways to make money online and the majority of them being highly dependent on having a good URL, it’s not surprising that domain names have become a highly valued commodity. Thus, many entrepreneurs have come to the conclusion that reselling domains can be highly profitable. So, while you can make money from domain speculation, you need to understand that it is also a risky business.
The Risks of Selling Domain Names
Going into business selling domain names will automatically require an initial investment. The amount you invest can be as little as $50 but you have to remember there is no guarantee the domains you purchase will sell, let alone for a profit.
Of course, you can do a lot to increase your chances of making a profit by making sure you choose domain names with potential, but even then there is no certainty that you will find someone willing to pay you to purchase the domain from you.
So, this is why it is imperative that you don’t go into the business of selling domain names if you don’t have an alternate source of income, at least at first. It will take a while for you to learn what works and what doesn’t and if you give up your day job right away, you could find yourself in dire straits.
Even established domain speculators will tell you that they have periods when nothing sells and that they’ve also bought tons of domains they couldn’t sell or had to sell at a loss, especially if they paid a premium for them. The key is to have realistic expectations.
Realistic Expectations Are Essential
No business will be profitable right out of the gate, which is why you need to set realistic goals and expectations. You’ll see domains being sold for huge amounts of money but you have to remember that for every domain that sells for $10,000, for example, there are thousands that sell for under $50 and these are just the ones being sold by resellers.
So, you need to be realistic and understand that finding a domain that will make you rich overnight is highly unlikely. In fact, many of your sales will probably be well under the $50 mark but even so, that is still an excellent profit on something you paid less than $10 for.
Reselling domain names can be a great business but you need to be prepared that not everything you buy will sell and that you won’t become rich overnight. As long as your expectations are realistic, though, and you do your research properly when it comes to picking domain names, you have a much better chance of developing a sustainable business that will generate a profit for you in the long term. You can find out exactly how to do that here Precise Strategy’s Domain Flipping Blueprint. Or, get started with a free review Fast Cash With Domain Names.
Jerry Duling is a Marketing and Business Consultant, Professional Speaker, and Social Media advisor. Jerry shows businesses how to use Social Media to build their brand, generate leads and close sales. Jerry also provides individual resources for the Internet Entrepreneur. Connect with Jerry on Google+.