The Internet is full of articles like NFTs.com Domain Name Sells for $15 million or The Most Expensive Domain Names.
Looking at these bombastic titles might make you think there’s a fortune to be made in the domain name-selling industry, and you would be right, to a degree.
Multimillion domain name sales are only the tip of the iceberg, and they only occur occasionally, not more than a few times per year.
You’re years away from the point at which you can offer domains at astronomic prices if you’re starting to build your portfolio.
Even after years in the domain flipping game and numerous successful domain sales, I still ignore catchy titles and flashy news because I know that they don’t reflect the actual conditions on domain name marketplaces.
In this guide, I’ll take you through the best marketplaces, groups, and forums to sell domains to help you get a realistic picture of the market.
Deciding on the Strategy
I’d be a rich man if I got a nickel every time I heard someone sold a domain name that was resold at a much higher price shortly after.
I believe these mishaps happen due to the lack of strategy and long-term vision.
Most domain name collectors rely on a simple tactic. They buy a domain name at a low price and sell it at its peak value.
The buy low, sell high strategy only works if you put a domain name on the marketplace at the right moment since you’re risking missing the window of opportunity if you wait too long or are not patient enough.
Another critical aspect to consider is how you want to trade a domain name.
- Direct sales – Pitching a domain name to your contacts might save you the trouble of dealing with all the hustle associated with trading domain names in a marketplace. Optionally, you can use a landing page builder to attract more buyers. This approach enables you to search for buyers at social media groups or domain name forums.
- Listing a domain name on a marketplace – Setting up an account on one of the major marketplaces is the fastest way to sell a domain name.
Estimating the Domain Name’s Worth
The only way to find out how much a domain is worth is to put it on the market and see what offers you can get.
Moreover, the factors contributing to a domain name’s worth aren’t easily quantifiable, making their valuation even more difficult. Here are a few factors that might affect the domain name’s price.
- Memorability – Buyers are looking for domain names that are easy to remember, so names with more than two words are commonly perceived as less valuable.
- Likelihood of mistyping a name – Domain names that are easy to spell are in demand because Internet users are less likely to make a typo when searching for them.
- LTD extension – It’s no secret that domains with .com extensions are valuable, but even domains .net or .info can be worth thousands of dollars.
- Brandability – Can a new owner build a brand around the domain name? If the answer is yes, your domain might be a valuable asset.
Automatic domain appraisal tools like EstiBot or FreeValuator can help you get an idea of the domain name’s worth.
Pick a Pricing Strategy
For years, I struggled to understand that value and price of a domain name aren’t the same because I underestimated the psychology behind product pricing.
In short, buyers will think that your domain name isn’t valuable if you set the price too low or that it’s a risky investment if its price is too high. As a general rule of thumb, your asking price should be slightly higher than its estimated value.
Domain name marketplaces offer sellers several pricing options:
- Buy Now – A fixed price at which you’re willing to sell a domain name. It ensures better exposure for your listing, increases your chances of finding a buyer, and makes transferring a domain to a new owner easier.
- Make an offer – Opting for this pricing model spares you the trouble of setting a price. Instead, it lets interested buyers approach the seller with their best offer. This creates space for negotiations and gives both parties more flexibility.
- Auctions – Buyers set the domain name’s minimum price and wait for the best bid.
Who’s Your Ideal Buyer?
A witty and catchy domain name can propel an online business to success.
Digital entrepreneurs don’t have time to come up with blogs, e-stores, or SaaS domain names, which creates an opportunity for sellers.
An online domain name generator enables you to discover names using the same keywords buyers will utilize to develop their SEO strategy. These tools let you target buyers from different niches and increase your chances of profiting from selling domain names.
So, in most cases, you’ll have to know who might be interested in buying a domain name long before listing it on a marketplace.
Moreover, you must monitor the market trends and know which niches are trending so that you can pick the best moment to sell a domain name.
All marketplaces allow buyers and sellers to communicate.
This is particularly useful if you choose the Make an Offer pricing model since you get to know the buyer and determine if they’re willing to pay more than their initial offer.
Creating an Eye-Catching Listing
Listings aren’t descriptive, which often leaves buyers wondering why an attractive domain name is for sale.
If you’re lucky, the listing will contain the essential metrics, like when the domain was first registered or how much traffic it attracts.
However, most sellers don’t bother to include this information in the description, and buyers must do their own due diligence before submitting an offer.
I think writing a brief but informative description improves the seller’s chances of attracting good proposals.
My opinion is based on these factors:
- Listing a domain name without a description makes you look like you’ve got something to hide.
- A description that contains all relevant metrics saves buyers time.
I’m not saying that a domain name description should be long because no one will bother to read it. However, writing a few lines about your reasons for selling a domain name can go a long way in establishing trust.
The Best Domain Name Marketplaces
1. Bido
The community-oriented approach makes Bido a perfect destination for novice domain name sellers.
This marketplace lets its members vote for domain names, and when a domain gets enough votes, it enters an auction.
Sellers can set the domain name’s minimum price, which indicates how high the starting bid should be. The platform also offers the Buy Now pricing option, but sellers often choose not to include it in the listing.
Bido’s Auction Acceleration Program lets members skip the 30-day voting period and use the marketplace’s credit points to schedule an auction. Sellers don’t have to accept the highest bid if it doesn’t meet their expectations.
Pros and Cons of Bido
[elementor-template id=”19321″]Forrest’s Take
Bido is one of the best marketplaces to sharpen your sales skills and learn more about domain name trading. I want to underline that Bido isn’t for domainers who want to sell five or six-figure domain names.
2. SnapNames
Joining a large marketplace like SnapNames before you’re ready to start trading domain names is, in my opinion, baptism by fire.
The platform is aimed at experienced sellers that already participated in live auction events and showcase auctions.
Members can also specify Buy Now or Make an Offer price if they don’t want to participate in auctions.
SnapNames has a domain name broker service it offers to owners of premium domains that can be potentially worth millions of dollars.
The platform’s fees range between 20% and 15% of the domain name’s selling price. Members have to pay an additional fee when selling a name that isn’t in SnapNames’ registrar account.
Pros and Cons of SnapNames
[elementor-template id=”19324″]Forrest’s Take
SnapNames is one of the best places to auction or offer domain names for private sales if you have a vast domain portfolio and would like to capitalize on your best assets. I don’t recommend rushing to join this platform if you have just started building a portfolio.
3. eBay
I wasn’t surprised when I discovered that eBay has domain name services, but I was surprised when I realized how vast the platform’s domain name marketplace is.
Sellers have two options. They can participate in auctions or choose a fixed price for a domain name.
I want to remind you that you’ll be on your own if you decide to sell a domain on eBay. You’ll be responsible for setting up an auction, promoting it, and negotiating with buyers.
The platform lets you create featured and premium listings, but this service isn’t free, and you’ll have to pay a 10% to 15% commission fee if the auction is successful.
Pros and Cons of EBay
[elementor-template id=”19327″]Forrest’s Take
The main benefits of listing a domain name on eBay are exposure and safety. The eCommerce platform attracts millions of potential buyers and has an escrow service that protects you against fraud.
4. Sedo
Most domainers, myself included, chose to sell their domains on Sedo because of the platform’s level of professionalism, flexibility, and transparency.
It offers the following sales options:
- Buy now
- Make an offer
- Fortnightly auction events
- Marketplace auctions
- Direct auctions
Sedo also has a broker service for domainers that don’t want to negotiate with buyers or have time to oversee the ownership transfer.
Moreover, sellers can promote their listing and get featured on the platform’s homepage for as little as $0.30 per day.
The sales commission for domains sold at auctions or the platform’s marketplace is 15%.
Pros and Cons of Sedo
[elementor-template id=”19330″]Forrest’s Take
As much as I appreciate this marketplace, I wouldn’t recommend it to someone new to domain trading. Sedo is best suited for domainers who are developing their portfolios and already have a large number of high-value domain names in their possession.
5. FreeMarket
Freelancers who have a profile on Freelancer.com can benefit from listing domain names on the FreeMarket platform.
Participating in auctions is free, and you can decide which information you want to include in the listing.
The platform lets you create listings for just one or multiple domains, but keep in mind that listings for multiple domains cannot contain more than 250 domain names.
Sellers can choose if they want to add the Buy Now price to the listing or how long their auction will last.
The platform offers the option to feature a listing on its homepage and allows you to create private listings, but these services aren’t free.
Pros and Cons of FreeMarket
[elementor-template id=”19333″]Forrest’s Take
I think joining the FreeMarket can give you hands-on trading experience if you’ve been collecting domain names for a while and you’d like to see how much they’re worth.
The Best Domain Name Forums and Groups
All successful domainers I know attribute their success to the combination of skill, knowledge, experience, and luck.
Skill and experience are polished through practice, but accruing knowledge requires determination to gig for every bit of information that can give you an advantage over the competition.
Forums and groups can be sources of valuable information where you can learn the ropes of the trade.
Here are some of the best domain name forums that can find a wealth of learning resources.
1. DomainState
Before diving deeper into the domain research tools, I want to point you in the direction of the DomainState’s Glossary page.
Terms like nameservers, new TLDs, or Domain Name Systems can be confusing when you first start collecting domain names.
The DomainState’s Glossary page contains all common terms and abbreviations you’ll encounter when trading domains.
The site features a broad spectrum of tools that can help you generate domain names with typos, create drop domain reports, check which TLDs are rising in popularity, or run a quick search in the Whois Database.
2. DNForum
If you’re looking for answers to any domain name-related questions, you’ll likely find them at the DNForum.
Also, you can keep up with the latest industry news, research recent domain name sales, or search for buyers who might be interested in the domain name you want to sell.
DNForum isn’t a conventional marketplace, so any deal you negotiate will take place outside the platform.
Still, it is a great place to connect with buyers if you don’t want to put a domain name on a public marketplace.
3. NamePros
Becoming a member of the NamePros will enable you to do all the research from the same place.
The platform’s Discussion section features threads that cover domain extensions, niche domains, and countless other topics.
In addition, you can use NamePros to ask other members to appraise a domain name or get a professional appraisal by joining the Insiders Club.
Members can sell their domains at the platform’s marketplace, but the promotional tools they have at their disposal depend on their account level.
Frequently Asked Questions about Domain Name Marketplaces, Forums, and Groups
Registrars lock domain transfers for two months after registration, so the soonest you can list a domain name is a couple of months after registering it. However, most domain investors hold on to domain names for five or ten years to maximize their value.
Are Domain Names with .COM Extensions More Valuable Than Domain Names With Other Extensions?
Domain names with the .com extensions constitute over 70% of the market share, and they are usually more expensive than domain names with other extensions.
Can I Modify a Domain Name After I Buy It?
Altering a registered domain name is impossible. However, you can modify a domain name before renewing it.
Final Thoughts
I spent years collecting domain names before deciding to participate in an auction.
I used that time to familiarize myself with the market, learn about valuation tools, and perfect my ability to coin domain names with keywords.
My advice is to join the DNForum or similar sites and search for any piece of information that can help you develop a domain name portfolio and learn how to choose the right moment to list it on a marketplace.
Sedo and SnapNames are among the best marketplaces for domainers with sizeable portfolios, but I suggest joining a less competitive marketplace if you’re just starting out. FreeMarket or Bido can be an excellent starting point where you can practice your trading skills before transitioning to a major domain name marketplace.