How to Properly Sell a Domain Name Avoiding Common Issues

You probably think of selling a domain name as putting some property up for auction and then waiting for a buyer. However, given the importance of domain names to online businesses, it’s not surprising that we come across options worth a few quid to a few million.

It doesn’t matter if you just want to sell a domain you don’t need anymore or if you want to make money by buying cheap domains and then reselling them at a higher price. In any case, you need to understand what factors affect the price and how to attract honest buyers with whom you can conduct the transaction safely and profitably.

After reading this guide, you will learn everything about the process of selling a domain from valuation to transferring the rights to the new owner.

Why Selling a Domain Name Can Be Profitable

Given the brand awareness and SEO benefits domain names can provide, they are now essentially digital real estate. Many companies and individuals are willing to shell out big bucks for memorable and brandable domains.

In 2001, hotels.com was sold for 11 million dollars, and history knows many similar examples with even more impressive figures. Naturally, not every domain is worth millions of dollars, but even a relatively ordinary name can be valued very highly.

Keep in mind that it is not enough to simply register a domain and hope that someone will notice it and want to buy it dearly. So, you need to learn how to properly assess its value, and ideally develop your own sales strategy.

Determine How Much Your Domain Can Be Worth

There are two possible scenarios here. By overpricing it, you will scare off a potential buyer while underpricing it, you will lose potential profit.

To evaluate your domain correctly, use the criteria below:

• Length and ease of pronunciation/remembering. The shorter the domain, the higher its value. For example, variants containing 3-4 letters are the most popular and expensive respectively.
• Popularity of keywords contained in the domain. For example, if it contains commercially demanded words such as ‘’car’’‚ ’tech‘’ or ‘’loan‘’, the price can be a six or seven-digit sum, provided that the name is short.
• .com domain zone. As this option has been the most popular since the advent of the global web, most domains with ‘.com’ are already taken. However, you shouldn’t choose this domain zone exclusively. For example, Spaceship io domains are extremely popular with startups today and therefore their price is high.
• Domain name history. If the domain was previously used for a successful web project and still has good SEO performance, its value increases.

To determine the approximate price, you can use specialised services like Estibot or NameBio. However, keep in mind that it is the market that determines the specific price, so do not be surprised when unexpected variants are sold for very large sums.

Prepare the Domain for Sale

Even if you have a really valuable domain, it’s crucial to do some thorough pre-preparation to make it look even more attractive to potential buyers:

• Update your contact information. Remove WHOIS protection from hiding your information so buyers can contact you. You can also temporarily disable privacy or provide contact information on the landing page.
• Renew your registration. If your domain expires in a few weeks or months, it looks unreliable to many buyers. By renewing it for 1-2 years, you can significantly increase trust.
• Create a sales page. Simply add a simply designed landing to the domain, stating your intention to sell the domain and providing contact details.

By taking these simple steps, you will greatly increase your chances of finding a worthy buyer and conducting a safe transaction.

Looking for a Buyer

While someone may snag your domain without you taking any active steps in that direction, the most common way is to find a buyer on your own. Below we’ve listed a few effective ways to sell your domain:

• Register at auctions. There are many specialised sites on the internet where you can put your digital name up for sale allowing buyers to bid. Some of them are also handy for selling domains along with websites.
• Try domain exchanges. With marketplaces like Efty or Afternic, you can sell your domain for a fixed price.
• Check out forums and communities. On specialised forums like NamePros and DNForum, you can find interested buyers and negotiate a deal without intermediaries.

Also, don’t forget about the direct sale option, especially if your domain is niche-specific (which makes it very attractive for some companies and individual entrepreneurs).

How to Negotiate Properly

If you manage to find someone interested in your domain, then build a dialogue properly – follow the tips below:

1. Don’t rush your response. If you name the price at once, the chance to sell your digital name more expensive will be extremely low. Better find out how much money the potential buyer is willing to spend.
2. Use arguments, i.e., refer to analogues sold at a high price and emphasise the strengths of your option such as SEO performance, quality links and relevant keywords.
3. Be prepared to compromise. By making a small (but reasonable) discount, you will greatly increase your chances of successfully closing the deal.

To protect both yourself and the buyer, it is best to use an escrow service. This ensures that you as the seller will receive your money after the successful transfer of the domain name.

Formalising the Transfer of Rights

So, you have managed to agree on a price and other terms with the buyer. Now, you need to create a contract, ideally a written agreement (especially if the value of the domain is high).

Then transfer the domain by providing the buyer with an EPP registration code to be entered when transferring the domain name. The last step is for the buyer to acknowledge receipt, which is necessary for the escrow service to transfer the money to you.

Keep in mind that in some countries, the proceeds from the sale of a domain name may be taxable. Consult a lawyer, especially if the transaction amount is large.

Bottom Line

As with anything of value, selling a domain is not an easy task, requiring you to conduct a valuation, pre-sale preparation, find a buyer (in most cases), and the ability to negotiate and transfer rights safely. By using the right marketplaces – and having good negotiation skills – you can maximise the benefits of the transaction and avoid most of the risks.

Finally, if you are not able to sell the domain quickly, you can use it to monetise traffic. For example, you can create a blog on popular topics or run a small online shop to increase the value of the domain and capitalise on it before you sell it.