I Bought a Domain for 980 Dollars and Sold It for 5,550 Dollars - Tips on Making Money With Domain Names

This was originally published on my forum. See that article for proof of income and for a list of useful sites.

Buying and selling domains is one of my side projects that I did in the past and had moderate success with.

My biggest profit came from a domain I bought for 980 dollars and sold for 5,500 dollars. You can make this kind of money, but it does not happen quickly or very often. You need to know what makes a domain valuable—things like the length, how easy it is to remember, and how well it relates to a specific industry. In this post, I help you get started in this business.

Above you can see some of my domain sales. Only a few of my transactions are done through escrow.com. You can see the 5,500 dollar sale above. It shows as 5,336.20 after fees. (image is on forum)

Domain investing, or “domaining,” is a well-liked way to earn money online. By buying domain names and selling them at a higher price, you can make a profit if you follow the right approach. Like real estate, domain names are digital assets that can become really valuable if you know how to choose the right ones. Here are some important steps to help you do well in buying and selling domain names.

Different Types of Domain Names: .com, .ai, .net, and More

When you start buying domain names for resale, you’ll find many different domain endings (also known as TLDs, or Top-Level Domains). The most common ones include:

  • .com: This is by far the most popular and valuable ending. It’s known everywhere and trusted by most businesses. If you’re just starting, .com is the safest choice.

  • .ai: This is becoming more popular, mainly among tech companies and startups focused on artificial intelligence. It can be profitable but is a more specific market.

  • .net: Another common extension, but it usually does not hold as much value as .com. It can be a good choice for specific industries like tech or internet services.

  • .org: Usually used for non-profit organizations, but it can also attract specific businesses or individuals who want to present themselves in a trustworthy way.

  • .co: Commonly used by startups and tech companies as an alternative when .com is taken.

There are hundreds of TLDs available, but not all are worth investing in. As a beginner, it’s wise to focus on .com domains since they are the most established and in demand. Once you get more familiar with the market, you can check out other endings, but focusing on one type at first will help you better understand the buying and selling trends.

The Importance of Focusing on a Niche

While there are many domain endings to choose from, concentrating on one niche—especially .com domains—can speed up your expertise. The .com extension is not just the most valuable; it’s also the one that consumers recognize and trust the most. Businesses often pay more for a strong .com domain name, which is why it’s a favorite for domain investors.

By starting with .com domains, you can get a good sense of which types of names sell, the price ranges for certain industries, and how to present your domains for the best resale value. Over time, you’ll find it much easier to spot trends and chances compared to spreading yourself across many types of domain endings.

How to Make Good Money Buying and Reselling Domains

The secret to making money in the domain industry is to buy low and sell high. This seems easy, but it requires research and patience. Many successful domain investors look for undervalued domain names—these can be expired domains, common misspellings, or catchy names.

Final Thoughts

Buying and selling domain names can be a very profitable business if you approach it smartly. Start by focusing on one niche, like .com domains, and grow your expertise in that area. With enough patience and research, you can find undervalued domains and sell them for a nice profit. If you’re willing to put in the effort, you can genuinely make a good income from domaining.

Useful Resources

Namepros.com is a go-to forum for domaining. There you can find great guides to the industry, plus buy and sell domain names at wholesale prices. I’ve discovered some fantastic domains for sale there.

ExpiredDomains.net is the best place to find thorough lists of expired and deleted domains. This is ideal for doing your domain research.

Namebio.com lets you see the sold prices of most, but not all, domains. Use this to help you figure out what your domain could be worth.

Yes. Buy low sell high. Do this with cars, houses, stocks and you can become a billionaire. It’s quite simple

Shan said:
Yes. Buy low sell high. Do this with cars, houses, stocks and you can become a billionaire. It’s quite simple

Yeah, at r/flipping you have many items that just sit there and don’t sell at all, fun times

Shan said:
Yes. Buy low sell high. Do this with cars, houses, stocks and you can become a billionaire. It’s quite simple

Buy high-quality, high-demand products cheaply and sell to customers in a big market. Simple!

Shan said:
Yes. Buy low sell high. Do this with cars, houses, stocks and you can become a billionaire. It’s quite simple

The idea seems easy. Still, many people ignore this simple thought. Too many buy high and sell low.

Even trying to buy low and sell high is simpler to say than to do. You don’t become a billionaire just by knowing the idea. You earn by executing it well.

Shan said:
Yes. Buy low sell high. Do this with cars, houses, stocks and you can become a billionaire. It’s quite simple

Not very passive but otherwise it’s good

Piper said:
Nothing about this is even close to being passive

[deleted]

Piper said:

Reagan said:
Piper said:
Nothing about this is even close to being passive

[deleted]

Oh so you’re one of those people, huh

Yes, I’m one of those that gets on with my work instead of arguing about details.

It’s not passive! It’s called trading. Buying and selling.

Haru said:
It’s not passive! It’s called trading. Buying and selling.

Nothing is 100% passive. Stocks and index funds are about buying and selling.

Cal said:

Haru said:
It’s not passive! It’s called trading. Buying and selling.

Nothing is 100% passive. Stocks and index funds are about buying and selling.

I tell my bank to invest a set amount into an ETF every month. How is this not passive?

Cal said:

Haru said:
It’s not passive! It’s called trading. Buying and selling.

Nothing is 100% passive. Stocks and index funds are about buying and selling.

L

Cal said:

Haru said:
It’s not passive! It’s called trading. Buying and selling.

Nothing is 100% passive. Stocks and index funds are about buying and selling.

You’ve invalidated everything you’ve said by coming off as foolish

Cal said:

Haru said:
It’s not passive! It’s called trading. Buying and selling.

Nothing is 100% passive. Stocks and index funds are about buying and selling.

L

There’s almost nothing anymore that isn’t being flipped for resale, nothing.

It’s really ugly.

Haru said:
There’s almost nothing anymore that isn’t being flipped for resale, nothing.

It’s really ugly.

Not really. In the example I gave, the seller quit their business and wanted to sell the domain. They set the price themselves. They paid good money for it. I don’t understand why you think they should just give it away or let it expire.

If you want to move houses, do you just give your home away because you no longer want it? No, you sell it. If the new owner sells it for more later, do you care? I bet you wouldn’t sell your house for the price you bought it at if prices went up.

Domains are just digital property. The owner needed to sell to get money for a new domain for their next project. There’s nothing wrong with that. I took a risk in buying it. Sometimes I sell for less and lose money.

I guess you don’t own any shares or index funds either. You wouldn’t want to do something as ugly as making a profit.

If you do own some, shame on you for buying just to make money.

@Cal
Index funds are shares of companies providing goods and services to people and businesses. At least flippers improve the house somewhat. What good or service are you bringing?

Darian said:
@Cal
Index funds are shares of companies providing goods and services to people and businesses. At least flippers improve the house somewhat. What good or service are you bringing?

I don’t flip website names. I think the original poster has a point with his arguments. But you asked about the good or service being provided here, implying there isn’t one. That isn’t true.

The original poster provides similar value as day traders in the stock market. Now you might be laughing and thinking they’re totally useless too. But the value they provide is market liquidity. If the original poster and every other website flipper vanished, any business with an online site looking to sell it would find that the market is no longer as active as before. The original poster helps to make faster sales for them and then he can find a buyer who values the name at whatever price he sets. You’re focusing on the original poster’s mark-up only, not on how his existence allows the seller to get more for the business they’re winding down.

Darian said:
@Cal
Index funds are shares of companies providing goods and services to people and businesses. At least flippers improve the house somewhat. What good or service are you bringing?

I’m helping buyers find the right domains for them. Many don’t want to do the work themselves. They would prefer to pay someone to do it for them. How about taking a Business 101 course?

When you buy stocks, what do you do? Nothing. You just buy hoping the price will go up. You don’t contribute to the business or care at all. You do it just to earn money. Nothing wrong with that, but domaining is not so different in many ways.

With real estate, some agents charge to help you find a house. I charge to find you a domain. What’s the difference?

You’re very naive about business.

@Cal
Some people criticize rent-seeking behavior. Others don’t.

No need to twist yourself into a pretzel pretending that flipping domains adds value.