How to Make Money Using Auctions for Expiring Domain Names
Few people have heard of the site known as NameJet.com, yet every day at 2:00 PM EST, an auction takes place in which bids can hit the tens of thousands of dollars mark. Typically a small number of bidders are present in the hopes that they can purchase something that another person has discarded. This auction is for expiring domain names.
Today, domain names that are expiring are available to anyone who has the knowledge to pick out good domains with high value, as long as they are savvy enough to know how to work the auction scene. Thousands of domain names are auctioned off daily at sites like NameJet.com, GoDaddy.com, and SnapNames.com. You simply sign up for an account to have access to this race. However, any good investor will tell you that getting involved in this business is difficult, especially if you are not aware that the key to making a great profit is to buy at a low price and sell high.
Some of the tips below will help you to begin with this activity, which to some is one of the simplest ways to make money using the Internet. You purchase high-quality domain names at auctions for expiring domains, and then sell them through sites like GoDaddy.com, Aftermic.com, and Sedo.com. Some may compare this activity to flipping houses, but the amount of work that you need to put into it is significantly lower.
It is recommended that you don’t place a back order on a domain until the last second. Sites like SnapNames and NameJet will require you to put a backorder on a domain before you can be apart of the auction, but others may not have this requirement. Typically the number of back orders will indicate the number of bidders that will be participating in the auction, and typically you will want competition to be low. If you place a back order on a domain, you will be telling others that at least one individual feels that the domain is valuable. Many investors will save time by just looking at the domains that other people have backordered, so by not engaging in this, you won’t allow others to take advantage of your hard work that went into choosing a domain.
Domain Analysis Tools
You should use domain analysis tools to assist you in looking at potential domains. An analysis tool will help you to filter the lists. Some options include:
These tools can save you hours of time, as they will allow you to sort and filter domains based off of number of links, domain age, and other criteria.
Take the Road Less Traveled
Big name sites like NameJet are very popular, but they rarely offer any good deals. This is because professional investors regularly cruise NameJet auctions and are wiling to pay top dollar for expiring domains. Therefore, in order to find a good deal you should try sites that are not as popular and are frequented less often, such as auctions like Name.com, Afternic.com, and TDNAM.com. Quality domains may be rare on these sites, but when they do occur you will likely have less competition for them and will pay a significantly lower price.
Keep Your Options Open
When working with auctions for expiring domains, it is important to not get too attached to a particular domain. Winners often overpay for domains, so it is often recommended that you estimate its market value before an auction becomes too heated. When the bidding begins to reach your estimated value, this is a good indication that it is time to drop out of the auction. Since the purpose of this process is to make a profit by selling it at market value, you will want to ensure that any domain you purchase is below that value.
By applying these tips, you will get an edge on the competition in auctions for expiring domains.