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[Method] Selling Hand Registered Domains for $xxx/Month

Discussion in 'Making Money' started by xxdanxx, Nov 8, 2013.

  1. xxdanxx

    xxdanxx Newbie

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    Hey guys and girls,

    After reading on here for about a year now, I decided it was time to actually post a method I've been using from time to time to make extra money. It's not anything revolutionary, but I hadn't seen any other methods just like it, so I figured I'd share. This is mainly for newbs or if you just want some extra cash once in awhile, but it's definitely scalable.

    What you're going to be doing is registering new domains and then selling them a few months later for a nice profit.

    First of all, go to the big domain auction sites and take a look around. Find some of the higher priced domains up for auction (not just for sale, auction is key). Copy and paste the names into notepad or write them down somewhere. Check to see if each domain has a website on it, any back links, or if it's just a domain by itself. What you're looking for are stand-alone domains with no site or backlinks. I forgot to mention, make sure there are actually bids on the domain. Just because it's at auction and the price is $1,000 or something doesn't mean anyone is actually going to buy it. A domain that has at least a single bid on it is important, because it means someone is interested in the NAME.

    Next, take your list of domains with no website, back links, and at least one bid over to godaddy or whatever bulk domain search engine you use, and check to see if there are any .com, .org, or .net domains available with the same name. If there are, buy them immediately before the auction is over. Stay away from any .info, .biz, etc. Keep it all with the big extensions.

    For example, through your research, you find that CrazyDogsWithSuicidalTendencies dot com has no website or back links, but the domain is selling at auction for $1,200 (yes, I know this is a ridiculous example. Sorry if this is actually someone's domain). You then find that CrazyDogsWithSuicidalTendencies dot net is available to register. Buy it and hang onto it.

    Now comes the hard part. You've got to wait a couple of months for the owner of the .com to take ownership and get settled into their new venture. After a couple of months, create an account and list your .net, .org, .com domain for auction. As a general rule, I list it at 80% of whatever the original sold for at auction. So if our previously mentioned dog domain sold for $1,000 at auction, I'll list my hand registered domain for about $800. Don't hold your breath, chances are, nobody is going to buy it there. You're just trying to "get it out there" and make it public.

    Next, go to whois and get the contact info for the owner of the domain that was purchased at auction. You can use your own personal email or create another account, but make sure the name matches whatever country your target domain is registered in. Not to offend anyone, but lots of times people don't trust foreigners, so you want your name to sound like someone nearby. I'm in the US, so I use my real name, but something like John Clark would work well. If the person you're trying to contact is in India, China, Mexico, etc, then pick a name for your email that matches. With me?

    Send that person an email telling them you were checking around and saw that they had a similar domain they owned, and that you were selling yours and wanted to know if they would be interested in it. Make up a story on why you are selling it (health reasons, a separate failing business, a hobby you're just not interested in anymore, etc). Make sure they know it's for sale at Sedo or wherever for $800, but that you're getting desperate and need cash quick and would be willing to part with it for less if they'd be agreeable to a quick sale. I've sold roughly 35% of my domains this way. Most of them, I've gotten between $300-$500 for. The new owner thinks they're getting a fantastic deal, because they were only interested in the name to begin with, paid $1,000 for theirs, and got your "$800" domain for just $400.

    Can't convince them? You're gonna have to do a little work. I've only done this part once, but it was successful.

    Wait for them to build a site on their domain. Build a WP blog or similar site on your domain (I said SIMILAR, don't copy). Use your favorite SEO tool to see what backlinks they have now, and try to get as many of the same ones as you can, plus a few more. Outrank them at their own site. They'll come to you now, lol. There was a domain like this I had that sold originally for $550, I tried to sell mine for $200 and the owner wasn't interested. After I outranked them, they came to me and tried to buy it for the $200, and I told them the price was now $750. They bought it. Anyway, the reason you bought your domain before the original auction was over is because you want ownership of your domain before they get theirs. I'm not a lawyer, but I don't think they would have much of a copyright claim against you if you owned the name first. Not that I've had a problem with it yet.

    Anyway, this was way longer than I meant it to be, but this was my first share and I hope it was clear and detailed enough. I've done this maybe 15-20 times successfully. Even though I only have about a 35% close rate, the profit margin more than makes up for my losses (unsold domains). Good luck!
     
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  2. Rokebono

    Rokebono Senior Member

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    Nice one but pretty time consuming imo, one must have both luck and steel patience to follow this. :)
     
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  3. ula36

    ula36 Registered Member

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    I like the method, thanks! Easy to implement too.
     
  4. xxdanxx

    xxdanxx Newbie

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    Yeah, agreed. That's why in my post I said waiting a couple of months was the hard part.

    I look at it this way, though: My IM knowledge is still pretty limited, and this is very simple. The ROI is way higher than I'd probably get in the stock market or from a bank, so I figure I'm still way ahead. If I tried it more than once a week, it'd be more profitable as well. It's just a simple way to bank some side cash for me while I learn from you gurus!
     
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  5. HeRBaR

    HeRBaR Supreme Member

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    Simple method, but too time consuming.
    Anyway money aren't earned always easily :D
    Thnx for sharing with us
     
  6. abhi007

    abhi007 Jr. VIP Jr. VIP

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    I love the simplicity even though it's time consuming doesn't affect because the earnings could be great...
     
  7. Neeraj Singh

    Neeraj Singh Regular Member

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    Great share OP, havent heard this before. I know it takes time but the profit is pretty good. If you sold one domain, so you can coverup your other domains money and have chances to earn more.
     
  8. hameem

    hameem Elite Member

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    You may have actually tried to sell me a domain or two :p
     
  9. ilovestocks

    ilovestocks Junior Member

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    CrazyDogsWithSuicidalTendancies is my domain! LOL just kidding, that's a great name though. Thanks for sharing your method. I don't care if it's time consuming, it's simple and that is fantastic. I'm going to try this out to help fund my blog network.
     
  10. Groen

    Groen Regular Member

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    Wouldn't it be more untrustworthy to have for example an indian name while only writing in english?
    Anyways I'll give this a try soon and maybe even find people to translate e-mails to appear more trustworthy to foreigners. Great method and thanks a bunch for sharing mate
     
  11. Roshaen

    Roshaen Elite Member

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    Great Method.Although its a bit time consuming but if you look at the profit margins with this methods your time harldy going to matter.
     
  12. moeatwa

    moeatwa Regular Member

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    Why stop there? Rather that twiddling your thumbs waiting for someone else to get a business going (or not) with, you could be pushing that domain to a variety of other potentially interested parties. Some examples include:

    1. People advertising on Overture or Adsense that have are bidding on KWs related to the domain name (Check their about pages).

    2. Google-search for similar websites and push to those

    Or of course, you could do something with them yourself to jazz up the deal when you sell them off.

    Just don't let the original method let you get idle people (unless of course you're already doing something on the side)!
     
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  13. xxdanxx

    xxdanxx Newbie

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    Good point. Perhaps translating would raise my close rate. I have to say, though--probably (guessing) 95% of my purchases were English language speaking countries. Could be just getting lucky.
     
  14. xxdanxx

    xxdanxx Newbie

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    Never even thought of #1. Awesome idea, thanks! As far as #2, I've tried it and had TONS of interest and almost closed a sale, but not quite. Maybe I'll give it another go. Actually, I was thinking of listing the no-sellers back on godaddy or something just to try and recover some money from them. If I got $8-10 each, I'd be even. Anyway, nice thought and I'll give it another go first.
     
  15. ChrisRR

    ChrisRR Junior Member

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    Why is it important that the dom name at auction has no backlinks?

    Thanks
     
  16. Groen

    Groen Regular Member

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    Because people should want to get the domain only for its name, and not for the backlink history. Of course the domain can have a few backlinks, but they shouldn't be worth anything as you want to make sure people are bidding on the domain because of its name.
     
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  17. ChrisRR

    ChrisRR Junior Member

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    Thanks for the answer :)
     
  18. xxdanxx

    xxdanxx Newbie

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    Oops, sorry I didn't get to your PM in time, but what Groen said is right :)
     
  19. xxdanxx

    xxdanxx Newbie

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    I got to thinking about it, and I guess I've never figured out my exact stats. Here's how they break down if anyone's interested:

    Bought 76 domains and sold 22 of them. So I've done this a couple of more times than the 15-20 I put in original post.

    Average sale price of domains were $326, and some change.

    Total gross revenue was $7,186.

    I couldn't find the exact amount I paid for domains, since I use coupons here and there and my record keeping sucks, lol. The total revenue was easier to find because all but 4 were paypal. But assume I paid $10 or so for each one on average, and that's about $760. Subtract that from the $7,186 and you get $6,426 net. That's as close as I can figure it.

    My success rate isn't as good as I thought either, I said 35%--it's closer to 29%. Still pretty good.
     
  20. Polot6789

    Polot6789 Registered Member

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    So most people bought your domains out of sympathy?can there be other ways to close the deals?Good methods,by the way.