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“Domain Purchase & Profitability: How to Purchase and Resell Domains for a Profit”
An Example of Domain Purchase
An Individual makes a domain purchase with a name they found very creative for a specific interest.
No one owned that domain and it was available for purchase for the very low price of $10.
After making the domain purchase, the individual that purchased it, develops the website and does a little SEO (Search Engine Optimization), which helps people find his website using search engines like, Google.
On the other side of the country, another individual opens their very own business. First, as a physical location with excellent foot traffic, but very quickly understood that their business would benefit greatly from the addition of an e-commerce website. The website would function not only as a business card, but also as a place where they could sell their products to a much broader reach. The problem this individual encounters is that the website with his business name is not available. The owner of that domain paid $10 for it, then developed it into a simple website that doesn’t sell anything. The business owner can now choose to either settle for a website domain name that does not perfectly fit his business, or enquire if the owner would consider selling the domain. The original owner may have spent $10 on the domain and several days of development to cause a very impressive amount of web traffic to see this website.
The price could range from $5,000 to Millions of dollars depending on how much effort went into the development of the website, the value of the name, the industry, and how much value the owner places on it. Selling the website for $5,000 covers the initial cost of the domain purchase, the development and SEO of the site and any other expenses. There is also some consideration as to the future potential of the web domains popularity. What if there was next to no interest in one subject currently, but as the website starts getting some traffic, a movie is released with massive box office success that deal with the subject matter of the domain in question? It is very realistic to consider a web domain like that suddenly reaching a price tag of several million to the right buyer.
How Making a Domain Purchase Can be Valuable
Buying a web domain is as easy as going to websites like, GoDaddy.com or JustHost.com and entering some website domain ideas in their search bar and seeing what is available. There, you can make the domain purchase you are seeking. Once you have the domain, the next step is to get it hosted so that you may develop and publish a website. There are many options for hosting, but usually, you can get your website hosted with whoever you buy your domain from. Once you have a place to publish a website, you will need to build and optimize your website. Establish a look, design, feel and tone. Decide on images, decide on what your website will basically be doing and build it.
In many cases, web design along with several other services like this can be done for you by exploring online work spaces like, Peopleperhour.com or Upwork.com. These websites offer you thousands of employees to perform hundreds of jobs from web design, to SEO or even social media marketing. You can hire out the job of web design to someone on one of those sites and once you have a functioning website with some SEO, you will need some patience. This is where people that do this for a living, begin the process over again with a new domain purchase. Each site, has a maximum budget that they are willing to spend on its development. Once reached, you let the search engines do the job of driving traffic to your developed websites.
People in business are typically very direct and not looking for alternatives for the perfect website they wish to conduct business on. You may not even sell products or services on the website, so they will make an offer to buy it from you thinking you want to simply give it away. You need to stand strong and realize that you have to do better than break even. There must be a profit on the domain purchase you made. Have a figure in mind for each domain before you have the website published. When they call or email, you don’t want to be unsure. You do not want to appear uncertain of the domain’s value. Declare the value and if they don’t want to buy it at the price you demand, there will be other calls and emails.
“That”, as they say is where you, “Wash, rinse and repeat”. Don’t stop with one, but continue the process over and over again. There will be plenty of time where you do not have any interested buyers as sites build interest and gain ranking on the search engines and more exposure to potential clients. That is how you take a domain purchase and make it profitable without having to actually start an actual e-commerce website business.
Think of a web domain like a piece of real estate. You can buy a piece of property for a price. Spend your time improving it. Then you can sell it for a higher cost than you paid and invested in its improvement. Making a profit this way is not a new idea or concept, just something people don’t always associate with web domains.
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