Buying and selling domain names for profit is an industry in its own right and a profitable one at that. Typically domains are held for an average of around 12 months then sold one.
Around 70% of domains that expiry are instantly registered by internet investors or speculators that are trying to arbitrage the domain names for profit. This means they buy a domain for the cost of the registration fee then seek to sell it for far more.
Well the simply answer is for whatever somebody else is prepared to pay for it. Domains have sold for $10's of millions of dollars but of course that is unusual and when it happens it makes headlines around the world. For example hotel.com is apparently going to sell for as much as US$40m at an auction in September in London, what it actually sells for remains to be seen.
A good way is to run adverts these pay more the more traffic you have, if you are lucky and the domain you acquire has a stream of traffic then this can more than cover the domain registration cost per year.
Google used to have a program called Adsense for domains but that was closed down, there are a number of other providers however which are worth talking to.
If the domain is particularly good you might consider building a site using our free site builder that will allow you to turn traffic into sales for example by offering affiliates or other products.
We do have customers who make a living working as a domainer so it can be done, but you have to be creative and have a keen eye for the right domain. We are seeing regular domain sales for around £1,500 so that should give you an idea of what may be possible.
If you are a large scale buyer of domains then sign up for our reseller program it allows you access to wholesale pricing.
There is money to be made from domains!
Adrian Lawrence is a webmaster with Discount Domains a leading UK domain provider
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