Key takeaways:
- The domain aftermarket is a secondary marketplace for buying and selling registered domain names.
- Identifying a domain’s buying opportunity in the domain aftermarket is important for making smart purchasing and selling decisions.
- Success in the domain aftermarket involves strategic steps, including setting the right prices and negotiating towards a beneficial outcome.
Businesses looking to establish their online presence sometimes have trouble getting the exact domain that suits their brand. This is where the domain aftermarket comes in.
We’ve put together a domain aftermarket guide that will help you understand what it is and how it works, with valuable tips for exploring it.
What is the domain aftermarket?
The domain aftermarket is a secondary marketplace where individuals and businesses buy and sell already registered domain names. Here, owners list their existing domains for sale, often because they no longer need them or see profit potential.
These transactions happen between private parties, and specialized platforms facilitate the process, which ensures a secure transfer of ownership.
You can find valuable domain names in the aftermarket platform, as most are memorable or have strong keyword relevance. However, these domains sell for a higher price than new registrations for the same reasons.
Business Research Insights predicts that the aftermarket domains market will reach approximately USD1.17 billion by 2033. This expansion is due to businesses increasingly relying on digital platforms for branding and eCommerce.
Obtaining a premium domain can bring various benefits to a company, such as:
- Enhance its online presence
- Support Search Engine Optimization (SEO) efforts
- Offer a promising investment opportunity for future resale
How to buy from the domain aftermarket
Buying a domain in the aftermarket is a straightforward process. Follow these steps to get you started:
- Search on domain marketplaces.
- Identify if the domain is a good buying opportunity.
- Make offers and participate in auctions.
- Finalize the purchase.
So, how exactly do you execute these steps? Let’s walk you through each one.
Step 1. Search on domain marketplaces
Many platforms specialize in connecting domain buyers and sellers. These marketplaces operate like online auction houses or classifieds for domain names.
Most platforms offer different listing types, such as “Buy Now” options for immediate purchase, or auction formats where you bid against other interested parties. Popular ones you can visit are Sedo and Flippa.
Taking the time to explore these marketplaces helps you discover the perfect domain for your business. Here are some best practices you can apply to your search:
- Use diverse search terms
- Explore various top-level domains (TLDs)
- Set up alerts
- Check expiring domains
Use diverse search terms
Don’t limit your search to exact matches. Use synonyms and different word combinations to uncover more options.
Explore various TLDs
While .com is often preferred, explore other relevant TLDs like .net or .org. You can also search for industry-specific TLDs like .shop or .tech if they suit your brand.
Set up alerts
Some platforms let you set up alerts for specific keywords or domain characteristics. Enable this feature to receive notifications when a relevant domain becomes available.
Check expiring domains
Look into lists of expiring domains. These can sometimes offer valuable opportunities, as current owners might decide not to renew them. We recommend using tools like ExpiredDomains.net.
Step 2. Identify if the domain is a good buying opportunity
When you find your desired domain name, the next thing to do is to figure out whether it’s worth pursuing. You can do this by looking for signs of motivated sellers.
Spotting eager sellers helps you prioritize which domains to go after and opens the door to more reasonable prices or terms.
Watch out for these clues:
- Fixed price
- Multiple listings
- Aged listings with no recent activity
Fixed price
If a domain owner lists with a set price instead of “Make Offer”, it usually means they’re looking for a straightforward, no-haggle sale. This can benefit you if you’re looking to close a deal without negotiation.
Multiple listings
Some sellers list the same domain on platforms like Afternic and Dan.com at once. This typically indicates that they’re exploring all options and might be flexible on price or terms to close a deal faster.
Pro tip: Look for discounts and ongoing promos on these platforms, and factor in escrow and transfer fees. These will help you find good deals and make informed decisions.
Aged listings with no recent activity
If a domain has been on the market for a while without updates, offers, or price changes, it can mean that the seller is holding out or not actively marketing it. But it can also suggest that they’re ready to move on and more willing to negotiate, especially if you make a fair offer.
We recommend reading our article on how to buy a taken domain to learn more about domain valuation. It discusses key factors to consider when buying a domain, such as:
- Legal risks
- SEO performance
- Current domain value
It’s also a helpful resource for selling a domain in the aftermarket, which we’ll discuss later.
Step 3. Make offers and participate in auctions
On most platforms, you can make a direct offer to the seller, or you can place bids if it’s an auction.
When making an offer, start with a reasonable amount based on your valuation research to leave room for negotiation. Sellers often expect counteroffers.
Meanwhile, in auctions, set a maximum budget beforehand to avoid overspending in the heat of competition. Some platforms offer proxy bidding, where the system automatically bids on your behalf up to your set maximum.
Remember that patience and strategic timing are important in negotiation and auction settings.
Pro tip: Research a seller’s reputation before making a direct offer to avoid transacting with fraudsters.
Step 4. Finalize the purchase
After agreeing on a price, the purchase moves to the final stage. For security, especially with high-value domains, use trusted escrow services, such as Escrow.com or Payoneer Escrow, to protect both parties during the transaction.
An escrow service is a neutral third party that holds the payment from the buyer and the domain from the seller until all conditions are met. This process protects both parties from fraud.
Once the funds are securely held, the seller initiates the domain transfer process to your chosen domain registrar. The escrow service verifies the domain transfer first, and then once it’s completed, they release the payment to the seller.
How to sell in the domain aftermarket
The roles are reversed; now you’re the seller. Selling domain names in the aftermarket can be profitable if you approach it strategically. Understanding the sales process will help you maximize your return.
Remember when we mentioned domain valuation in the previous section? You can use the resource we provided to help you identify which domains are advantageous to sell. Afterwards, you can proceed with the following steps:
- List the domain on platforms.
- Set a price.
- Negotiate with potential buyers.
- Complete the transaction.
Step 1. List the domain on platforms
It’s important to research different platforms to find one that aligns with your domain’s value and your selling goals. Some platforms specialize in great value domains, while others cater to a broader market.
Once you find a perfect aftermarket platform, try the following approaches to list your domain properly:
- Create compelling listings.
- Use appropriate listing types.
- Point nameservers correctly.
Create compelling listings
Write clear, concise descriptions highlighting the domain’s profitable selling points, such as:
- Branding potential
- Keyword relevance
- Traffic history
- Other valuable features
Additionally, position the domain as an asset that buyers can envision for their projects. You can also make your listing more appealing by including its search volume for keywords or past website analytics.
Use appropriate listing types
Decide if you want to offer your domain at a fixed price for quick sales, or to put it up for auction to leverage competitive bidding. You can also use a “Make Offer” option, which allows you to negotiate directly with interested parties.
Fixed-price listings often lead to faster sales, while auctions can sometimes result in premium prices if there’s strong demand. Pick the listing type that best suits your desired timeline and potential return.
Point nameservers correctly
Some platforms let you point your domain’s nameservers to their “For Sale” landers for maximum exposure. This strategy ensures that anyone typing your domain into a browser immediately sees that it’s available for purchase.
This will greatly increase the chances of a direct sale. It also provides immediate proof to potential buyers that the domain is legitimately for sale.
Step 2. Set a price
Setting the right domain prices is important for a successful sale. If you price it too high, it might not sell. If you price it too low, you fail to maximize your domain’s potential.
Effective pricing considers various factors, from the domain’s qualities to current market demand.
Here are some useful tactics for domain pricing:
- Research recent sales data
- Use appraisal tools
- Factor in the domain’s characteristics
- Consider your investment
- Monitor market trends
Research comparable sales data
Look at recent sales of similar domains. Websites like NameBio track historical domain sales and can provide insights into what domains with similar characteristics have sold for.
Factor in domain characteristics
Shorter, brandable, and memorable domains generally get higher prices than regular domains. You can also sell domains with high-value keywords or existing organic traffic at a premium.
Consider your investment
If you acquired the domain at a certain price, factor that into your desired profit margin. But you should always prioritize market demand over your purchase price.
Monitor market trends
All markets can fluctuate, and this doesn’t exempt the domain market. It’s best to stay informed about topics that will help you price competitively, such as:
- Current industry trends
- Popular niches
- Demand for specific TLDs
Step 3. Negotiate with potential buyers
Once buyers express interest, negotiation begins. This part requires patience and a clear understanding of your domain’s value. Buyers often make initial offers lower than your asking price, so be prepared for back-and-forth discussions.
It’s highly important to decide on the lowest price you’re willing to accept, as this helps you remain firm and avoid selling too cheaply. In addition to that, use the following tips to ensure a productive sales deal:
- Highlight the domain’s strengths.
- Be professional and responsive.
- Be open to counteroffers.
Step 4. Complete the transaction
The final steps involve securing the payment and transferring the domain ownership. We already mentioned using the escrow service, but let’s briefly go over the standard domain transfer process, which includes the following steps:
- Prepare your domain at your current registrar by unlocking it and temporarily disabling its privacy.
- Obtain a unique authorization code from your current registrar to confirm to them that you, the current owner, are initiating the transfer.
- Inform the buyer to initiate the transfer process with their preferred domain registrar and provide them with the authorization code.
- Both registrars will send emails requiring your approval to confirm the transfer.
- After your approval, the domain’s ownership will now transfer to your buyer’s registrar. This process will typically take five to seven days.
Once the escrow service confirms the domain transfer is successful, they’ll release the payment to you.
Pro tip: Keep detailed records of all agreements, communications, and transaction details for future reference.
Invest in aftermarket domains now
Domain name aftermarkets are great platforms to buy and sell valuable domains. Businesses and investors can leverage the aftermarket to secure premium domains that enhance their online presence and support their SEO efforts.
Sign up for marketplaces today and use aftermarket domains to their full potential!
To take it further, check out our other articles discussing topics related to domain valuation and management.
Frequently asked questions
An aftermarket domain is a domain name that someone has already registered and is now selling to another party. These transactions happen on secondary marketplaces, often called domain aftermarket platforms, rather than through initial domain registrars.
You can’t buy a domain name permanently, as domain registrations work on a lease model for specific periods. You only gain the exclusive right to use the domain for that registered period.
To maintain the lease, you should consistently renew your domain registration before it expires.
Domain flipping involves buying domain names at a low price and then reselling them for a higher price. This strategy requires identifying domain names with potential value.
The goal is to buy undervalued domains and then market them effectively to interested buyers who are willing to pay a premium price.
Domain investing can be profitable, especially with well-chosen domain names. Like any investment, it requires careful research, an understanding of market trends, and identifying valuable domain characteristics.
