The Domain Name Aftermarket

Domain names are mostly sold using a first come, first served system. In general, if you are the first person to register a domain name, this means that you keep control of that name, until either you transfer (usually by selling) the domain name to somebody else, or you fail to pay the annual renewal fees for the domain.

One result of the domain name system's design is that a person who identifies value in a previously unregistered domain name, can potentially make a profit by being first to register that name and selling it on (note: we are talking here about only domain names that do not infringe trademarks - bad faith registration of domain names that infringe trademarks is called "cybersquatting" and can lead to loss of your domain or even getting sued). Furthermore, because the best known types of domains, including those ending in dot com, dot net, and dot org, can be registered for just a few dollars per year, the amount of capital requiredto enter this business is relatively small.   Of course, that doesn't mean there is no risk - a person who registers domain names and then fails to sell them on, would be out of pocket for at least the cost of the registration fees (and perhaps more if they have spent other money on establishing a new business).

In short, domaining can be a potentially profitable activity, but not everybody will succeed at it. Those who are successful tend to be those who take the business seriously, including developing skills and expertise in all aspects of the domaining business - knowing their prospective customers, knowing how to sell domains in the aftermarket, mastering the technical aspects of the business, etc.  Some of this knowledge and expertise can of course only develop over time, but it also possible to getting a running start at the business by talking to experienced domainers, and perhaps by studying guides written by experienced domainers such as "How I Sell My Domain Names" by Edwin John or "Domain Cash Vault" by Brian Pubrat.

About the Author:

By S. Tanna. Learn more about the domain name aftermarket at http://www.domaincavern.com/trade.php