Domaining or the art of buying and selling domains can be very lucrative. That is, if you're good at it you can make enough money to live off of -or more. We have compiled this list of 7 things that are important to be successful in the industry.
Start with enough capital: Like most ventures, to be successful at something you will need some start up money. Small ventures in domaining can start with as little as $100, we personally reccomend that you invest with at least $500. By increasing the number of domains in your portfolio you are able to reach a wider market.
Never Over-Pay/Under- Sell: Always get an appraisal before you purchase or sell a domain. By getting a third party opinion on the value of the domain you drastically cut down on the amount of money you lose. It makes much more sense to spend the extra cash (if you purchase a midFlux appraisal it's a cool $8.00) to get a domain professionally appraised than leave the value to chance.
Hold on to valuable domains: If you have a domain that you feel is worth something – you should probably wait to sell it. The market value for domains is constantly increasing, almost exponentially. A domain that you could sell for $1000 today might be worth $2000 next year (that's 100% interest for the $10 it cost you to renew the domain). The opposite goes for domains with little value, why keep them if you're going to be losing money by paying the renewal fee?
Never sell through a forum: We strongly recommend not selling valuable domains ($500+) through forums. Forums are full of sneaky people looking to make a quick scam off unsuspecting domineers. It would make much more sense to go through a broker like sedo.com to sell a domain. The unfortunate side of this is that they will charge you $50 or 10% per domain sold (whichever is higher). Once again its much smarter to spend a little to prevent a scam that will ruin you.
Use Popular Registrars: Using registrars that handle a lot of domain registrations is a very good idea. When people go to purchase a domain they want it to have a seamless transfer as possible, they don't want to wait. Customers also don't want to have to sign up for a domain account at "Joe's Random Domains Site" just to claim your domain. Using very large registrars such as Go daddy can increase the sale of your domains greatly.
Only registrar known extensions: It's quite obvious that the majority of all sales are made in the .com market. People are willing to spend much much more if your domain is a .com, .net, or .org. The major reason for this is that these extensions have been around forever and they also have the most registrations. "Hello.com" will be worth 100 times more than "Hello.us" soley because of the extension. Also try and stay away from the .info extensions, they may seem like a good idea but you can register them for $1 (there ins't much money in that market).
Don't waste money on extras: If you're buying a domain for the sole purpose of selling it in the future don't buy extras. What we mean is don't purchase the "domain email" or "hidden registration" options. These extras are a waste of money and will not have a significant increase in the value of your domain. Don't you want people to contact you about purchasing your domain? They can't do that if your registration is hidden.