Home » Business Ideas » How to Start a Brokerage Business to Buy and Sell Domain Online

How to Start a Brokerage Business to Buy and Sell Domain Online

Whenever we buy or sell a property, we tend to contact an expert – real estate broker. Similarly, when you want to buy or sell a domain, you need a similar expert- domain broker. A domain broker can help a business or an individual to pick the right domain and acquire it; also, sell a domain name at the best possible price.

They have all the practical industry experience and in-depth domain knowledge to walk you through the process of buying or selling a domain name. They’ll tap into their extensive network to find potential domain buyers/sellers and take care of the transaction.

There are broadly two types of domain brokers; one is the buyer broker, who represents you when you are in search of a domain name. And, other being the seller broker who helps you smoothly sell off your domain.

Why Are Domain Brokers So Popular These Days?

There are a myriad of factors to take into account when buying or selling a property, such as evaluation and to inspect it. To sell and buy domain name is no different. Here are a couple of solid reasons:-

1. Anonymity

If someone doesn’t want to disclose their company’s or individual identity when buying/selling a domain, then they must hire a professional domain broker. They’ll get the deal done smoothly while assuring the peace of mind of their client.

2. Pricing Advice

A domain broker provides the best pricing advice based on their vast experience to their clients.

3. Network

The domain brokers have their vast network of other brokers and domain buyers and sellers to help their clients buy and sell their domain names quickly and at the right price.

4. Negotiating Prowess

People find it hard to negotiate when they buy and sell domain; that’s why they hire a domain broker to get the job done.

In recent years, with more and more websites being made live from India, the domain brokerage business in the world’s biggest democracy is increasing, and in the next couple of years, it will scale new heights. Today, here in this post, we’ll cover the following sections:-

  • What is a Website Domain?
  • How to Identify a Worthy Domain Name?
  • Where Can You Buy Domain Names?
  • How Do You Evaluate a Domain’s Worth?
  • Where Can You Sell Domains Online?

What is a Website Domain?

A domain name is nothing but the address of your website; it is the URL Internet users type to land on a particular site. To better understand, let’s take a simple example; your website is your house, while your address is your domain name.

Now, coming to a more detailed explanation- The Internet is simply an interconnection of thousands and thousands of computers via cables. Each commuter in the network can communicate with others in the network.

How to identify each computer? The answer is an IP address. Each computer has a unique IP address. It is a series of numbers that identifies a specific computer in the network.

A typical IP address is 66.249.66.1. Now, such numbers are difficult to keep in mind; imagine you’ve to type these numbers in the URL in the browser to visit your favorite site, isn’t it complicated? So, we had the invention of the domain names to solve this problem.

Now, when you want to visit a particular website, you don’t have to enter a series of unique numbers. instead of the easy-to-remember name of the domain. For example -onlinebusinessinindia.com

How a Domain Name Actually Works?

First of all, when you enter the name of a particular domain in the browser, then the request is forwarded to the global network of servers that combined form the Domain Name System (DNS). After this, the servers hunt for the name servers associated with the domain, and your request is forwarded. For instance, if you’ve hosted your site on Bluehost, then your server information will be like ns1.bluehost.com & ns2.bluehost.com.

Now, what name servers are? These are computers which are being managed by your hosting company. The hosting company will forward the website request to the computer on which the particular website is stored. Thus this type of computer is known as the webserver. It fetches the website and all the information that is associated with it. And finally, the data, the website is sent back to the browser for the user to view.

What Are The Different Types of Domain Names?

The domain names are available in a plethora of extensions, spanning from .org, .info, .net, .tv, etc. However, using the .com extension is highly recommended. Now, take a detailed look at the different types of domain names:-

1. Top-Level Domain – TLD

These are generic domain extensions that are enlisted in the highest level in a domain name system. There are approx hundreds of such domains, including .com, .info, .agency, etc. Apart from .info, .net or .com., other TL domains are less known and often not recommended.

2. Sponsored Top-Level Domain – sTLD

These are a set of domain extensions that represent a specific community. For instance .edu for educational institutions, .gov for government sites.

3. Country Code Top Level Domain – ccTLD

These are domain names that end with a country extension. For example, .in for India, .uk for the United Kingdom, and .de for Germany.

Who Takes Care of the Domain Names?

Internet Corporation for Assigned Names and Numbers (ICANN), an international body, takes all the responsibility for managing the entire domain names system.

It is a not-for-profit organization that is responsible for creating and implementing an effective domain policy. ICANN allows Domain Name Registrars To sell domains. They’re allowed to make changes on their behalf.

The Domain Name Registrars are responsible for buying, selling, transfer, and renewal of the domain names. So, when buying/selling a domain name, you need to contact a Domain Name Registrar or a domain broker to help you.

Now, if you are planning to launch your domain brokerage business in India to buy and sell domain names, then you must thoroughly read the next segment as it is about how to pick a worthy domain name. So, let’s find out:-

How to Identify a Worthy Domain Name?

Choosing the right domain name is tricky. Going with the wrong domain extension would mean a dump investment for the domain broker. This is why it is imperative to your homework when deciding on a worthy domain name to buy that you can sell with a good profit. Here are the simple steps framework to guide you through:-

Step 1: Stick with .com

The .com extension is the safest bet. Yes, today, there are plenty of domain extensions such as .pizza, .fashion, or .photography, but companies and individuals still tend to go with .com. We always recommend going with the .com extension. The .com domains are quick to remember, as naturally, Internet users type the name of the website and end with .com.

Step 2: Use the Keywords

To pick worthy domains, you must take into keywords which are popularly used by Internet users to search for a particular service or category of products.

With a one-word or long-term keyword in the domain, the search engine’s algorithm will know what the website is about.

Together with engaging quality, and a good browsing experience, the site can rank well on top search engines like Google.

However, you must keep in mind; it is not easy-peasy to find good domain names with keywords, as they’ve already taken. You’ll have to make genuine efforts to do hours of search, maybe days, to stumble upon something that you see worthy for a profit. You have to be creative, combine the keywords with helping words to form profitable domain names.

Step 3: Keep Your Domain Name Short

In the process of including the keywords, don’t make the keywords long. Make sure it is short, crisp, and easy to keep in mind. Ideally, the domain name must not be greater than 15 characters. Long domains are complex for people to remember.

Moreover, keep in mind, when typing long domain names, people tend to include typos, which could eventually lead to loss of traffic. So, in a nutshell, opt for a short domain name.

Step 4: Easy to Pronounce and Spell

Another simple yet essential tip to consider when buying a domain name is that it must be easy to spell and pronounce. The domain name must not be such, which is complex to write and say.

Step 4: Avoid Hyphens

Have a big no hyphen policy for the hyphens. Typically, the hyphens are a common sign of spam websites, so stay clear of it.

Step 5: Avoid Double Letters

It is highly recommended to avoid domain names with double letters, as it increases the loss of traffic because of typos, and people prefer not to go with such domain names.

Step 6: Research Your Domain Name

Before you begin with buying a domain name, it is imperative that you do comprehensive research to make sure there is no business registered with the same trademark. Even avoid matching names, as they’ll only create more confusion.

Step 7: Use Domain Name Generator

There are several online tools to generate some domain name ideas. These online tools generate clever domain names for defined keywords.

Step 8: Act Early

If you come across a good domain, don’t wait too much; act fast to buy it.

Now, we hop onto our next section, which are the best places to buy a domain name.

Where Can You Buy Domain Names?

Today, there are over hundreds of domain registrars over the Internet. It is imperative to be careful with what you choose; otherwise, later on, you’ll have to face the hassle of switching from one domain to another.

Just like web hosting, the cost of domain names varies from one domain registrar to another, right from $9 to $24. Let’s take a look at how you can buy a domain name.

Free Domain Registration With Web Hosting

The majority of the domain web hosting companies also provide domain names free of cost as an additional service. If you’re setting up a new site, then you must take advantage of such an offer, get a domain name for free with web hosting.

The two places to buy a domain name are Bluehost & HostGator. Bluehost is one of the globally renowned names in the world of web hosting services. In fact, it is the official partner for “WordPress” as a website hosting service provider.

HostGator is another popular name when it comes to web-hosting providers; here, you get affordable website hosting options. One important thing you must keep in mind is that most hosts offer the domain name for one year online. After that, you’ve to renew your domain registration.

If you want to buy a domain name by purchasing the hosting package, then you can get the name from an official domain name registrar. Domain.com is a trusted domain registrar on the market.

Here, you’ll discover top-level domain names with a myriad of smart features, including the premium domains and all the necessary tools. At Domain.com, you’ll find amazing deals and discounts.

They also offer web hosting services, and by applying the GoDaddy coupon code, you can get a free domain name.

After this, we move to the next section, which is to determine the worth of your domain.

How Do You Evaluate a Domain’s Worth?

The name of a domain name varies from a few dollars to thousands of dollars. The domain name is like your asset over the Internet market. When the price of a domain name surges, you can sell it online to make a good profit. The salient features of a domain name with a resealable potential-

  • Meaningful Keywords
  • Brandable
  • Has Been Around for a While
  • Good Top-Level Domain
  • Short Length
  • Passing the Radio Test
  • Correct Spelling

Now, is the challenge of how to know the real worth of your domain name?

The first is to do the research on recent domain sales. Check for the different types of domain purchases and for what amount.

It will give you a rough idea, how much is the worth of a particular domain name. Compare your domain name with the top sold domain names in terms of length, keywords, and any other factors that will tell whether you have a domain name with which you can make a fortune.

Use the online domain appraisal tools to evaluate your domain name’s worth. Tools like these automatically determine the value of a particular domain name based on all the key SEO-related factors such as monthly searches, Alexa rank, keywords, and cost per click. They’ll give you a rough idea.

One thing to keep in mind is that the short domains are tricky to find. Therefore its value is on the higher side.

If your domain name contains any of the in-demand keywords, then you can expect its price to be slightly higher.

Let’s go to the final section: how to sell your domain name.

Where Can You Sell Domains Online?

Selling a domain name is a lengthy process, and one cannot expect bids right away. But, there is hiring a buy and sell domain broker to help you with through the entire process to sell your domain name.

Below is the process to sell your domain name online:

1. Determine your Domain’s Value

First thing first, you’ve to properly evaluate the price of your domain name. A majority of people make the most common mistake of overpricing their domain and wonder why they are waiting for the domain name for long.

Keep in mind; you’ve owned a domain name for a while doesn’t mean it will have an inherent value. Follow the above-mentioned procedure to know the right value of your domain name.

2. Decide How You’d Like to Sell

Now, when you know the worth of your domain, it’s time to start searching for buyers. You can sell your domain name in a few different ways. Some of the popular sites to sell your domain are:-

3. List You Contact on WHOIS Directory

If you’re ready to sell your domain, it’s time to make your contact information available WHOIS directory; they can reach out to you directly to buy a domain name from you.

4. Prepare Your Domain Listing

Once you’ve decided on a marketplace to sell your domain name, the next step is to optimize your listing. Don’t just upload your URL; make the efforts to write a compelling description to maximize your odds of selling.

Does your domain name have existing traffic? Does your domain name have any authority? Check all the key points.

Conclusion

So, in the end, if you want to build a successful business to buy and sell domain, then it goes with saying that you do a lot of research, knowledge because ultimately, that’s what makes brokers specialists in their field. Start slow, don’t think much about profits, instead create long term relationships with your clients.

Along with online business to buy and sell domain names, there are 29 online business ideas that I curated in an article, which you can read here. Please let us know, if this article was helpful.

About Nandini

Nandini Yogi is Co-creator and Senior Editor at Online Business in India . She is Writer by Heart and Business Developer by Profession. You can connect with her on LinkedIn and Instagram.