How To Sell a Domain Name: 6 Easy Steps + 8 Places to Sell Domains

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 no use. But they’re registered for some reason, right? 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

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.

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. Premium domain names can cost thousands and even millions of dollars.

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;
• 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.

To set your price, you can use Domain Price Checker for free domain price check; NamePros for daily domain sales reports; and NameBio for historical domain sales.

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.

What 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: it should be short and simple.

Step 2: Listing Preparation

You must prepare an engaging listing that would work as a sales pitch and advertise your domain’s best features. What you need to 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.

But 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.

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.

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 if you:

• Add relevant keywords to the title and description;
• Ensure your info on the WHOIS record is updated and includes your contacts;
• Indicate your domain’s best features: share visits, ad revenue, relevant niches and keywords, social media handles;
• Highlight your offer on social media like Twitter (X) and Facebook.

You can also launch targeted advertising or Google Ads to engage more people. But this would make sense if your offer would bring at least $1000.

Step 5: Sales Process

Placing and optimizing a listing is good but it doesn’t guarantee sales. If you write to potential buyers first, you can increase your chances. So, what you can do:

1. Check your domain and industry. Let’s suppose that you own “ecofriendlygear.com”.
2. Research companies within the industry. You can search for related keywords to find different companies and influencers who work within the eco-friendly niche.
3. 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.
4. 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.

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 integrated with their domain registration services and provides 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. It’s global and has dedicated sections which is why it’s a good place for your listings. But at the same time there’s a downside — it lacks 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 known for reselling them and has a large network of partners. So 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, so you can discuss other services here 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, that’s why some call it a 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.

Ratmir Turchaninov

7+ years in the copywriting area. Expertize in EdTech, education, and sports. I also understand the IT industry. My experience includes creating blog posts, social media publications, landing pages, emails, and proofreading. Additionally, I've managed a small team at A2ZFile and provided recommendations for designers in other projects. I can work individually or be a team player – both options are possible.

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