According to various reports, there are over 664 million domains in the world and the number is constantly growing. Only 203 million websites are actively maintained and visited, leaving 461 million domains with little to no use. But they’re registered for some reason, right?
While some people register and maintain domain names to sell them for more money, others have domain names that global companies need. For example, Elon Musk bought Tesla.com for $11 million from Silicon Valley engineer Stu Grossman.
It seems to be a great way to make money. Let’s find out how to sell a domain name with minimum hassle.
- What to Consider Before Selling Your Domain
- How Much Does a Domain Name Cost?
- How to Sell a Domain Name: 6 Steps
- Step 1: Research and Valuation
- Step 2: Listing Preparation
- Step 3: Choosing a Selling Platform
- Step 4: Marketing and Optimization
- Step 5: Sales Process
- Step 6: Domain Transfer
- 8 Best Places to Sell Domains
- 1. Flippa
- 2. GoDaddy Auction
- 3. Sedo
- 4. NameCheap
- 5. eBay
- 6. Afternic
- 7. NamePros
- 8. SnapNames
- Summary
- FAQ
- How to Sell a Domain Name on Godaddy?
- How to Sell a Domain Name Privately?
- Where Can I Sell a Domain Name Instantly?
- What is the Best Way to Sell a Domain Name?
- How Do I Securely Transfer a Domain Name?
What to Consider Before Selling Your Domain
If you have a domain and decide to sell it, you have to consider several key points:
- Domain value to set a realistic price in the industry;
- Legal considerations including ownership, trademarks, and taxes;
- Best place to sell your domain with minimum commissions and issues.
| Citizens of the US might have to deal with tax implications. According to the IRS guidelines, the money you spend to acquire a domain must be capitalized and amortized over 15 years. Note: selling your domain through platforms like Flippa still requires you to file and pay taxes. |
For example, a website owner decided to sell his domain name after 15 years for $30,000. The website made a profit during this period. The owner had to fill out form 4797 (an IRS form for the sale or exchange of property) as domains are considered business property, leading to a 10% tax.
How Much Does a Domain Name Cost?
According to the CEO of VPN.com Michael Gargiulo, most unreserved domains cost between $5 and $50 per year. However, reserved premium domain names cost thousands and even millions of dollars.
Here are the factors that impact the price:
- Trustworthy TLD: top-level domains (TLD) like “.com”, “.net”, or “.org” cost more than “.vip” and “.bid” domains due to their recognition and reliability;
- Brevity: short domain names are easy to remember, making them perfect for marketing and recognition;
- Generic value: the most expensive domains are usually the simplest. This is proven by the sale of “cars.com” for $872 million;
- Keywords: domains with keywords have a higher chance of getting into the SERPs on Google.
You can use the following services to set your price:
- Free domain price check – Domain Price Checker;
- Daily domain sales reports – NamePros;
- Historical domain sales – NameBio.
You won’t get a precise cost using these services. But you’ll have a general understanding of the market’s rates. This will help you evaluate your domain appropriately.
How to Sell a Domain Name: 6 Steps
If you’re wondering how to sell a domain name, we prepared a detailed step-by-step guide for you.
Step 1: Research and Valuation
Start by researching sale prices for a similar domain. You can use NameBio or DNjournal to access historical data. This will help you understand the industry’s trends and set a realistic price.
As you can see in the screenshot, the tool shows you a marketplace and prices for any domain including the keyword “Affiliate”. This helps you understand the current rates.
Here are some factors that can influence the price:
- Domain extension & authority: check out a list of most top-level domains;
- Keyword popularity: use Google Trends to analyze keyword popularity;
- Domain length: the average length is between 7-15 characters;
- Memorability: if it’s short and simple, it works.
Your chances of selling a domain will increase if you set the right costs. That’s why it’s important to research the niche for similar offers.
Step 2: Listing Preparation
You must prepare an engaging listing that would work as a sales pitch and advertise your domain’s best features. Some things that you can include in the description:
- Generated traffic if it’s currently in use;
- Recommended niche;
- Benefits like memorability or keyword’s relevance;
- Transfer conditions.
This is a necessary step to help your listing stand out. If you add more information, your listing will also cover certain keywords. This would be even better because it increases the chance of appearing in the SERPs and being noticed among your competitors.
However, detailed listings are only important when selling through regular marketplaces like eBay. Most platforms don’t require a detailed description and show your listing like in the screenshot below.
Also, you should add your contact information to the WHOIS directory or ICANN. These are tools that help users find registration data on domain names. Potential buyers will find you even if they’re not using your marketplace, increasing your chances of selling.
Step 3: Choosing a Selling Platform
How to sell your domain name after completing research and preparing a listing? You must decide whether you sell privately or through a marketplace. The approaches and benefits vary.
| Factor | Privately | Via Marketplace |
| Visibility | Limited to your own network and outreach. | High visibility due to high traffic. |
| Costs | No listing fees. | There may be fees and commissions. |
| Pricing control | You have full control. | You must comply with the resource’s guidelines. |
| Negotiations | Direct negotiations with buyers. | Usually use bids and don’t include negotiation. |
| Payment Security | Higher risks due to no intermediaries. | Lower risks due to built-in escrow services. |
| Time to sell | Faster if you have direct contacts, and slower if you use regular listings. | Usually quicker due to larger exposure. |
| Marketing | You’re responsible for all marketing. | The platform may provide promotional services. |
If you decide to use a specialized platform, you must check their fee structure and available selling options. These will be your most important criteria when making a decision. We share the best such places in the next sections.
Step 4: Marketing and Optimization
Just placing a listing won’t guarantee any results. You can increase your chances of attracting buyers by using the following practices:
- Create an SEO listing: add relevant keywords to the title and description;
- Check your info on the WHOIS record: ensure the data is updated and includes your contacts;
- Indicate your domain’s best features: share visits, ad revenue, relevant niches and keywords, social media handles, and other information that helps you explain the listing’s importance;
- Share the news on social media: most sellers highlight their offers on Twitter (X) and Facebook.
Depending on how much you expect to earn, you can also launch targeted advertising or Google Ads to engage more people. This would make sense if your offer would bring at least $1000.
Step 5: Sales Process
Placing and optimizing a listing is great but it still doesn’t guarantee sales. You can increase your chances of selling the domain by writing to potential buyers first. Here’s how this can work:
- Check your domain and industry. Let’s suppose that you own “ecofriendlygear.com”.
- Research companies within the industry. You can Google related keywords to find different companies and influencers who work within the eco-friendly niche.
- Prepare a sales pitch. Write an email describing your offer’s benefits and explain how it can help the business. You can usually find contacts on the website or by searching on LinkedIn.
- Keep on negotiating. If the lead is interested, discuss the terms and conditions of your listing. You might have to lower the costs depending on the client’s budget.
If you do this privately, you’ll need a reliable escrow service for a secure transaction. This will help you get an intermediary ensuring your domain is transferred only when the client pays. The average escrow fee is around 3% depending on the transaction sum.
Step 6: Domain Transfer
After the payment is secured, move the domain to the buyer. The process typically takes from 1 to 7 days.
Note that you can only change ownership when 60 days have passed since:
- Registration or last transfer;
- Last changes in the registrant’s name, organization, and email address.
You can check out the whole process in the video below:
8 Best Places to Sell Domains
If you’re looking for the best place to sell a domain name, we gathered 8 popular services that can help.
1. Flippa
This is one of the biggest marketplaces covering domains, blogs, websites, e-commerce stores, and more. It provides an auction-style format and includes a large audience of investors, making it a great choice for maximum engagement.
This platform’s entry-level package costs $29 and charges an additional 3% in success fees.
2. GoDaddy Auction
This is one of the largest domain registrars, helping people sell all kinds of domains to a big audience through auctions. It’s user-friendly and integrated with their domain registration services, providing a simple ownership change process.
You’ll have to purchase an annual membership which costs $4.99. The service charges additional fees for promotions and featured listings.
3. Sedo
Sedo is the world’s leading domain market providing both auction and fixed listings. The service also includes brokerage services if you want a professional to handle the process.
Depending on the chosen package, you’ll be charged 10% to 20% of the gross sale price.
4. NameCheap
NameCheap is a one-stop shop for everything related to websites. If your domain is managed through this service, it’s the best place to find a client. You won’t be limited by the 60-day freeze period if the customer uses the same service for their hosting. We previously mentioned NameCheap when discussing how to choose a domain for Facebook ads.
A flat 10% commission is charged for successful transactions.
5. eBay
eBay is the world’s largest e-commerce store for all needs. Its global reach and dedicated sections make it a great venue for your listings. However, it’s more risky due to the lack of an escrow service.
You’ll have to pay 10% with a $750 cap for a successful transaction.
6. Afternic
Afternic is a great choice to buy, vend, and park domains. It’s well-known for reselling them and has a large network of partners. This ensures your listing is visible to a large audience.
If you’re a seller, the platform charges 15% to 25% of the transaction’s cost.
7. NamePros
NamePros is a forum-based service covering all domain-related topics. It connects domain experts from all over the world, making it a valuable place to discuss other services as well.
The platform doesn’t charge anything but you’ll need an escrow service for your security.
8. SnapNames
SnapNames is known for working with taken and expired domains. It offers hundreds of options categorized by their industries, making it the perfect aftermarket service.
SnapNames charges 15% to 20% depending on your listing type.
Summary
We covered the best places to sell your domain name fast and with minimum hassle. You can do it privately or use third-party platforms specializing in domain reselling. Both options have their pros and cons. Remember to always use escrow services when working with private sales to avoid getting scammed.
FAQ
How to Sell a Domain Name on Godaddy?
This requires you to follow a step-by-step process:
- Register on the resource and list your domain.
- Set the pricing strategy depending on your needs.
- Promote your listing to enhance visibility.
- Use the service’s features to give the domain to your client.
How to Sell a Domain Name Privately?
Find a customer on eBay, NamePros, or even write directly to potentially interested buyers to offer your domain. Make sure you research similar offers to set the right costs. Don’t forget to use escrow services to protect your transaction.
Where Can I Sell a Domain Name Instantly?
You can use Sedo, SnapNames, and other similar platforms for fast transactions. Some brands offer brokerage services for a certain fee to speed up the process.
What is the Best Way to Sell a Domain Name?
If you’re looking for speed and security, then using a specialized platform is your best choice. However, you can also use forums and social media to get more flexibility and avoid paying extensive fees.
How Do I Securely Transfer a Domain Name?
The easiest option is to use an escrow service. Most specialized platforms already have an integrated escrow service that immediately transfers your domain to the customer upon payment.
