Last month I wrote about how the fastest way to get to financial independence is by adding a side hustle to your day job. One of my side hustles is domain name investing. It's a low-cost entry into what I like to call online real estate.
Most of you know that I've been doing a month of no spending in January as a way to reset my finances, so I've had a lot of time to hunt for new domain names and I wanted to share a common question that I'm asked when I tell people about domain name investing. A lot of folks ask me, "Where do you sell domain names?" or "What's the best place to sell domains?" The answer is... it depends.
Before you even sell your domain name, it's worth knowing the different types of sales channels and how you can sell on either.
There are two types of sales channels: active and passive. On active sales channels you can usually sell faster, but can get a lower sale price. On passive sales channels, you sell at a slower rate but can really get the price you want.
Active sales channels mean you have to engage in selling - you have to send outbound emails to potentially interested buyers (who you also usually have to find), start an auction (on GoDaddy, Sedo, Flippa, NameJet), or enter into a contract with a broker.
Passive sales channels means you list your domain name in a marketplace (like Afternic, Sedo, Flippa, Brandbucket) and wait, or put up a for sale landing page on your domain site or really just do nothing. If you have a strong domain name, it might make sense to sit on it and use the passive sales channels until the right buyer comes along.
Now on to the question of "What's the best place to sell domains?" It depends on your strategy. For example, one of my strategies is to sell generic domain names on auctions like GoDaddy, and tech/brandable domain names on marketplaces like Brandbucket and Flippa. However, I always start by looking at Name Bio. I type in a pattern, like NNNN, select an extension (I only buy ".com" so that's the one I search), and sort by date (don't sort by price because you want to see how much look alike domains are actually selling for) to see if there are any sales on a specific platform. Maybe names with "data" are selling better on NameJet because there are tech investors there? Or maybe something is selling on Sedo because they have an international audience? After that, you can determine what your next step should be.
What do you think? Leave me a comment below if you have questions about domain investing!
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