How to invest in used domain names? What are the popular platforms recommended?

Used domain names, i.e., those that have been previously registered and are now available for resale, offer a plethora of opportunities for domain name investors. While the initial investment for these domains is higher than for manually registered domains, the profit potential can be much higher due to their established value. Let's take a look at the process of investing in used domains, assessing their quality, and utilizing popular platforms to make smart purchases.

First, what are the advantages of used domain names?

There are multiple benefits to investing in used domain names that can make them a valuable addition to your portfolio:

1. Established Value

Used domain names often have established value due to their previous use, existing backlinks and brand recognition. This makes them more attractive to potential buyers who are willing to pay a premium for these advantages.

2. Immediate Traffic

Some used domains come with existing traffic, which can be of immediate benefit if you plan to monetize the domain through advertising, affiliate marketing or as a lead generation tool.

3. SEO Advantage

Domains with existing backlinks and a strong SEO profile can immediately boost search engine rankings, making them a valuable asset for businesses looking to enhance their online presence.

4. Brand Recognition

Many used domain names have been previously branded, which can save the new owner a great deal of time and resources in building brand awareness.

Evaluate the initial investment and potential return

When considering the purchase of a used domain name, it is important to weigh the initial investment against the potential return. The methodology for assessing these factors is as follows:

1. Domain Name Quality

Assess the overall quality of the domain name by considering the following factors:

Relevance: Ensure that the domain name is relevant to a profitable market or industry.

Memorability: Short, memorable domain names are more likely to attract buyers.

Brandability: Domain names that are easy to brand are more valuable.

2. Historical data and previous sales

Analyze the history of a domain name to understand its past performance and potential future value:

Sales History: Check platforms such as NameBio and DNJournal for previous sales data.

Usage History: Use tools such as the Wayback Machine to see how a domain has been used previously.

Ownership history: DomainTools can provide insights into a domain's ownership history.

3. Traffic and Revenue Potential

Domains with existing traffic or revenue streams are more attractive to buyers:

Traffic analysis: Use tools such as Google Analytics (if accessible) or Alexa to estimate traffic levels.

Revenue sources: Look for existing methods of monetization, such as affiliate links, advertising or subscription services.

C. Popular second-hand marketplace platforms

1. Efty.com

Efty.com is a used domain name sales platform that helps domain investors manage, market and sell their domain name portfolios through a range of user-friendly tools.

Customizable, commission-free landing pages for direct domain sales.

Portfolio management tools with integrated analytics and performance tracking.

Seamless integration with payment processors such as PayPal and Escrow for secure transactions.

2. Sedo

Sedo is one of the largest domain name marketplaces offering a wide range of domain name buying and selling services:

Listing Options: Sedo allows you to list domains for sale, participate in auctions, and utilize brokerage services.

Valuation Tools: Sedo provides tools to help you determine the value of your domain name based on market data.

Escrow Services: Secure transactions with Sedo's escrow services to ensure that both buyers and sellers are protected.

3. Afternic

Afternic provides a powerful platform to buy and sell premium domain names:

Premium Listing: Increase visibility through Afternic's premium listing service.

Web Distribution: Afternic's extensive network of partner sites helps to reach a wider audience.

Automated Pricing: Afternic's pricing tools help set competitive prices based on market trends.

4. NameJet

NameJet specializes in high quality domain name auctions and domain name reservations:

Auction Platform: Participate in auctions for expired and premium domain names.

Reservation Services: Secure domains before they are auctioned off using NameJet's reservation services.

Exclusive partnerships: Benefit from NameJet's partnerships with registrars and other domain name platforms.

5.DN.com

Service type: global quality domain name trading platform, with a large number of two-letter, three-letter and artificial intelligence and other quality domain names.

Trading advantages: safe and convenient, rich trading platform, short trading time.

How to assess the quality of domain names?

1. Historical data

Reviewing the history of a domain name can provide valuable insights about its potential value:

WHOIS history: Use DomainTools to check the WHOIS history and ownership changes of a domain name.

Archived data: The Wayback Machine can show how the domain was previously developed and used.

Blacklisting: Use tools such as Google Transparency Report to ensure that the domain name has not been blacklisted or penalized by search engines.

2. Traffic and Revenue Potential

Existing traffic and revenue sources add significant value to a domain name:

Traffic analysis: Tools such as SimilarWeb and SEMrush can provide traffic estimates.

Revenue Sources: Look for domains with established revenue streams, such as ad displays or affiliate links.

3. Comparable Sales

Analyzing comparable sales helps determine the fair market value of a domain name:

NameBio: Access sales data for similar domains to assess market value.

DNJournal: View weekly sales reports to understand current market trends.

Estibot: Use Estibot's valuation tool to obtain an estimate based on comparable sales data.