When someone in the domain industry goes to sell a piece of their inventory, it’s usually to one of two different types of buyers. The first, so-called end users, are people who have a specific use for the domain. This might be an entrepreneur starting a business or a large company launching a new product line. End users might also buy a domain name for competitive reasons, such as keeping a category-defining keyword domain out of the hands of competitors or buying a domain name that is similar to one they already use. Resellers (other domain investors) are another type of person who buys domains with the hopes of selling them for a profit. Investors will sell their domains to both types of people, but the sales tactics and how you reach each type of buyer is very different.
Selling To End Users
Some end users are pretty savvy internet users, while others have never registered a domain name before. One way an end user will see if their desired domain is taken or not is by simply typing it into their web browser. That’s exactly why it’s so important to have a for sale landing page on your domain. Services like Efty.com and DAN.com make it easy for you to create and host these landing pages. Also, both services allow potential buyers to easily submit an inquiry form about buying the domain. Some end users will also search domain marketplaces like Sedo, Afternic and Flippa. However, that is much less common compared to landing pages and domain registrar searches. The savviest end-users will look up the owner of a domain by doing Whois lookup. Depending on where the domain is registered and whether or not the owner uses Whois privacy, the end-user might be able to find the phone number or email address for the domain owner and use this to contact the owner. This is exactly why it’s so important to make sure you Whois details are always accurate and up-to-date!
Selling To Resellers
Other domain investors (also called resellers) buy domains much differently than end users. They often buy domains in auctions, such as those held by NameJet or DynaDot, and in live domain auctions. You can also find lots of reseller buying and selling taking place on popular domain forums like NamePros. Sometimes, a domain investor will inquire about a name through for-sale landing pages, but it’s more common for the reseller to perform a Whois lookup and contact the owner via their email address or purchase the domain through a forum.
Two Different Kinds Of People
When it comes to finding buyers for your domain names, end users and resellers are two completely different animals. Most of the time, end users will pay more for your domain. Resellers will pay less because they need to be able to make a profit when they sell the domain to someone else further down the road (ideally an end user). So, unless you are trying to sell a domain quickly and at a lower price, it usually makes sense to wait for an end user to inquire about buying your domain. You can still make money selling domains to other investors. Some successful domain investors make their living buying domains which they can quickly turn around and sell to other investors. The profit margin on these types of domain sales is small, but that can be made up in volume. Domain investors should consider strategies when selling their domains. At a minimum, all domains should be listed on domain marketplaces and have clear for-sale landing pages.
Both end-users and other domain investors have a role in bringing liquidity to the domain name aftermarket. Understanding the differences is key to a successful sales strategy.