To purchase a domain name, one must make a purchase from a Domain Name Registration Service Provider who is accredited with the ICANN (Internet Corporation for Assigned Names and Numbers).

Nowadays, it has become a very profitable business to acquire domain names and then re-sell them in the Internet marketplace for a profit. This can be done as a very lucrative business if one is not violating Cyber Squatting Laws or Intellectual Property Laws.

To give a brief overview, Cyber Squatting involves buying a domain name with the express intention of extorting a higher than market price value from a prospective buyer. Violating Intellectual Property Laws with regards to domain names involves purchasing a domain name which has a name similar to that of a person or a company that is well known, again with the express intention of exploiting the price value of that domain name in the market.

All these activities are punishable by law and must be avoided, especially if one wants to build a good business and reputation as an Internet Domain Name Reseller.

Selling a Domain Name: Tips for Reselling Domain Names

Selling a Domain Name involves a lot of research and hard work, especially if you want to establish yourself as an Internet Domain Name Reseller.

It helps if you compare domain names with property locations or real life addresses. Obviously, an address of a particular location will help define the price value of the property when it goes for sale. In the same manner, names of particular domains will gain relative price value depending upon their address. This means the names of your domains have to be something that other people may want for themselves at some point of time in the future.

As a domain name reseller, you have to remain abreast of the latest developments and purchase relevant domain names which you feel will become valuable somewhere down the line. Of course, all this has to be done while ensuring that there is no violation of Laws mentioned before.

Domain names expire after a certain period of time, depending upon the time period that you purchased it. So you may have to buy the domain name for a long period of time so that no one else gets it in the in-between period. Or you have to ensure that you renew your ownership before it expires. This can be an investment, which you will have to factor into your costs while reselling the domain in the future.

Another thing that you have to consider which kind of Top Level Domain (TLD) you are purchasing. Different TLDs tend to command different prices. For example a ‘.com’ TLD will often have a higher price than any other TLD. That is not to say that the other TLDs don’t attract high prices, but often the name of the domain will help you determine which kind of TLD will attract more price.

Once you have acquired the domain name(s) that you want to resell, you must now decide on a strategy for how to resell those domain name(s). Here are some tips which will help you formulate a good plan for selling a domain name: