Profiting From Pre-owned Domain Names

Escrow and Transfer Services

Brokers are great marketing and sales channels for selling your domain name, but they do not necessarily support the actual transaction of exchanging the domain and payment. Unlike a physical good, a domain name is an electronic record that must change to reflect the new ownership information. Also, the buyer and seller may be in two different countries and use different currencies. A number of escrow and transfer agents are available to ensure the transaction goes smoothly for both buyer and seller. Typically, the escrow provider will accept payment from the buyer, and hold the money until the domain transfer actually takes place. Once there is confirmation from the buyer that the domain has been transferred, the escrow service will release payment to the seller. Escrow services may also facilitate the actual domain transfer itself, thus taking that step out of the buyer and sellers hands.

Auctions

Many sites offer an auction process for selling domain names. A seller will list his domain and specify a minimum asking price. The seller can also specify the duration of the auction, similar to auctions on ebay.com. Some auction sites offer escrow and domain transfer services while others do nothing more than manage the listings. To list your domain name in an auction, you will be required to either pay a flat listing fee, or a commission based on the final selling price.

Trademark Disputes

Whenever you choose a domain name, you should always consider the implications of facing a potential trademark dispute. Just because you own a domain name does not mean that you have the right to use that domain name. Before you buy a domain name with the intent to sell, be careful not to buy a domain name that has a risk of infringing on a registered trademark. Technically, if you purchase a domain name that infringes on a trademark and then turn around and sell it before the trademark owner files a lawsuit, you may not get in the middle of the dispute. However, if you hold a domain name that infringes on a trademark and ownership is transferred to the trademark owner or if a restraining order is made so that the domain cannot be used by anyone else, the domain name you hold becomes worthless.

Summary

A rich market exists for buying and selling domain names. One of the best ways to scoop up some great deals on domain names is by keeping tabs on which ones have become available by being deleted from registry databases. Domain names can be registered for as little as $10 for an entire year. If you find a domain name that has market potential, you could turn a significant profit by selling that domain on any number of broker or auction sites available on the internet. Good luck with fortune hunting for domain names!