If you are looking to buy or sell a domain, one of your best options is domain auctions. These are generally dedicated to domains that have some value beyond the initial registration fee of $8 to $15. Some people make a business out of buying and selling, or “flipping” domains while others only do the occasional transaction.
The whole field of domain trading is constantly changing, but it remains a healthy and growing business. As new types of domains become available, the marketplace will get even more diverse.
The Basics of Domain Auctions
Anyone who owns a domain may sell it at an auction site. There are many popular domain auctions, such as GoDaddy.com, Bido.com, Afternic.com and many others. eBay also has a category for domains.
In order to participate in a domain auction, you must first be a member of the site. Some of these are free to join, while others charge a membership fee.
Determining the Value of Domains
Domains are very difficult to appraise, as their value is quite subjective. There are some free appraisal services online, but these are not very reliable at predicting the prices that the domains will actually fetch. Even paid appraisals are not a guarantee, as it’s all a matter of matching the domain with a buyer who wants it.
In general, .com domains are worth more than other extensions. Shorter names, and those with popular keywords also tend to command higher prices.
If you are selling a domain, you can set a reserve price to ensure that you don’t lose it at a lower price than you feel it’s worth.
Transferring a Domain
After a domain is sold at an auction, there remains the task of transferring it to the new owner. This works best if both buyer and seller have accounts at the same registrar. This is easy enough to arrange, as anyone can sign up with a registrar for free. After the domain is purchased, the old owner will transfer or “push” the domain into the account of the new owner.
For high priced domains, it’s safest to use Escrow to ensure the legitimacy of the transaction. You can also use PayPal or other payment processors, but this is riskier if you don’t know the party with whom your dealing.
Getting Familiar With Domain Auctions
If you are interested in buying or selling domains, it’s a good idea to browse some online auctions. See how much different domains are selling for. Make sure you look at actual selling prices and not simply asking prices. On eBay (as well as other domain auctions), you will see many domains with very high asking prices but no bids. When you feel ready, you can get your feet wet and start participating in domain auctions yourself.
Author Bio
Greg Mosk, editor who runs DomainRaccoon.com has been in the business of reviewing registrars and its different features. Having been in this industry for over a decade, his site helps people make decisions on which registrar best suits their business strategy.
This is an original article from WP Cypher Copyright 2012