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11 Mar, 2009

Selling Domain Names

Posted by: drivelocity In: On The Web

As someone who is constantly trying to unload old domain names, I have a great interest in this topic, but not a lot of success. I’ve only sold one domain in my time and the buyer came to me directly. Essentially, they wanted to eliminate their competition, or where their competition advertised. I have purchased a fair number of domains using GoDaddy’s Auction service, which is convenient since they are my registrar of choice.

Top sites for selling domains (according to this survey):

  1. Sedo 48%
  2. Forums 14%
  3. GoDaddy (TDNAM) 8%
  4. SnapNames (Moniker) 7%
  5. Afternic 6%

Domain Distribution Network, eBay, and domain newsletters each received less than 2%.

Other sites you can sell domain names on:

  1. GreatDomains.com (SEDO)
  2. Aftermarket.com
  3. SitePoint.com
  4. BuyDomains.com
  5. ImpressiveDomains.com
  6. WebSiteBroker.com
  7. YourDomainTrade.com
  8. NamePros.com

Top ten most valuable domain names (amount paid):

  1. Sex.com $14 million 2006
  2. Fund.com $9.9 million 2008
  3. Porn.com $9 million 2007
  4. Business.com $7.5 million 1999
  5. Diamonds.com $7.5 million 2006
  6. Beer.com $7 million 2004
  7. Casino.com $5.5 million 2003
  8. AsSeenOnTV.com $5.1 million 2000
  9. Korea.com $5 million 2000
  10. SEO.com $5 million 2007

Use an Escrow Service:

So, what do you do if you’re buying a high priced domain name, or want to sell a domain name directly to a buyer? I strongly suggest using an escrow service such as Moniker’s escrow service, or Escrow.com in order to protect yourself from fraud. They will facilitate the deal in which each party must agree to and complete each step prior to the transfer of domain and money taking place.

Domain Appraisal Service:

While the actual value of a domain is likely to be somewhere between the perceived value and an appraised value, an appraisal can be a valuable asset in garnering interest in a domain you are trying to sell. Your domain is only worth what someone is willing to pay and you could be in for a serious disappointment if you price your domain too high. Try using Moniker’s domain appraisal service to get an idea of where you stand. GoDaddy offers one as well.

5 Responses to "Selling Domain Names"

1 | trade show guru

March 11th, 2009 at 4:45 pm

It’s funny to see what the top selling domain names have been. Kind of says what our society’s priorities are?
I’m a little surprise to see you say about godaddy, “they are my registrar of choice,” based on your experience with their private registration service. ~ Steve, the trade show guru

trade show guru´s last blog post..Green Trade Show Displays

2 | drivelocity

March 11th, 2009 at 4:57 pm

Steve, True, I had problems with their DomainsByProxy service, I dislike their over-the-top upselling, and I’m not a fan of the hype surrounding their super bowl ads… But… I used to use another registrar that charged quite a bit more, so I started switching my domain names over and now it would be overwhelming to move. Using a coupon code (OYH3), you can buy new, or renew old, .coms for under $7.45. It wouldn’t be worth it to leave. And, at this point, I can pretty much skip over the upselling in my sleep, so it doesn’t bother me as much.

Yesterday, I mentioned a recent incident involving GoDaddy. They came through for me… I was attempting to sell a domain name via TDNAM and upgraded the listing to include a front page listing. I found that it was a subscription and my PayPal acct was automatically billed even though I didn’t want to do the front page listing anymore… I contacted them and they refunded the money w/in 48hrs.

3 | Alex

March 13th, 2009 at 7:41 am

i hate godaddy, there interface is so messed up. name.com is pretty amazing and i use them for all my domains.

Alex´s last blog post..What is the difference between a Ponzi scheme and United States social security system? Why is one illegal?

4 | Matt Keegan

March 15th, 2009 at 3:27 am

I’ve used Escrow.com twice for selling large websites. Very happy with the service, though it can a week before you see the money — always request a cash transfer into your bank account to finalize the sale.

For smaller sites or domains, I’ve had success with Paypal. However, I will only deal with people who have built up a trust (through Digital Point, for example), otherwise it is no deal for me.

Matt Keegan´s last blog post..Is Your Lazy PR Person Sabotaging Your Business?

5 | drivelocity

March 18th, 2009 at 11:39 am

Alex, I agree that it can be overwhelming using GoDaddy.com for the first time, but once you get used to it and know what you’re there to do, it’s a piece of cake.

Matt, Great points. I would definitely want a higher level of trust built up before using PayPal. I have a lot of confidence in PayPal for most uses, but the horror stories keep me from wanting to use it for a large transaction.

For anyone thinking about using escrow.com, I suggest using their fee calculator to see if it’s right for you…

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