Free eBook by John Chow - How I Went From Zero to Over $100,000 a Month
 

How To Buy and Sell Domain for Big Profits

written by John Chow on May 9, 2012

Secure Affiliate Marketing

I have always been fascinated by domainers. They’re the people who buy and sell domain names for profit. Vancouver is home to some of the biggest domainers in the world – the most famous being Dr. Kevin Ham. Dr. Ham and I (along with Markus Frind of Plenty of Fish) were featured on the cover of The Province newspaper back in 2008 as BC’s Dot Com Moguls.

While what Markus and I do is pretty easy to explain, there seems to be an air of mystery to domaining and domainers like Kevin Ham. The fact that most domainers shy away from the spotlight (Dr. Ham never gave an interview for The Province article) adds to the mystery.

Just because Kevin Ham won’t talk about domaining doesn’t mean I have to keep silent as well. The fact of the matter is, buying and selling domain names is potentially one of the most profitable money-making activities you can do on the Internet (Dr. Ham’s domain portfolio makes him over $30 million a year).

Buying And Selling Domains Made Easy

In the past, buying and selling domain names was for big players only. They had custom-made tools to value domains and catch them when they drop. These days, thanks to advance tools and services like Protrada, pretty much anyone can get into the domain game.

When it comes to buying and selling domain names, Protrada is the system that I use. The free service combines all the world’s major domain auction houses in one place, giving you the tools you need to develop a successful portfolio. Protrada makes it extremely easy to import all of your domains so that you can manage them across multiple registrars.

Instead of jumping from one domain auction house to the next looking for that perfect name, I just log into my Protrada account and all the names from all the major domain auction houses are pulled in for me. Protrada aggregates the world’s best auctions giving you real-time access to over 7 million domains and 30 unique data filters to help you pick just the right domains. A complete tour of Protrada’s many features can be found here.

It’s a lot like hunting for treasure. You’ll be amazed by some of the great names you can pick for a great deal less than their true value. My friend Zac Johnson recently added blogging.org and PPC.org to his portfolio and I couldn’t believe the price he got them for. Tools like Protrada are designed help you unearth those bargains.

One of the best features of Protrada is the Bid Manager that helps you win auctions for less. As auctions end around the clock Bid Manager will work when you sleep to place your bid. Set your maximum bid and Bid Manager will bid just enough to win the auction in the final minutes. This saves you hours sitting at your computer and prevents your bids from drawing the attention of other domain buyers – fewer potential buyers means lower prices.

Protrada membership plans ranges from free to $450 a year for the Pro Plan that I use. You can start with the free plan and upgrade at anytime. Since becoming a member, Protrada has saved me a ton of time looking for and buying domains for my various projects. Whether you’re buying or selling, Protrada is a great service. And their new mobile app for iPhone and Android puts the icing on the cake.

The following video explains, in plain English, what domain trading is and how Protrada help you make money from it.

Did you enjoy this post? Get John Chow Dot Com updates via email...

Stay up to date with all of John Chow’s tips for making money online and blog posts by subscribing via email. Your email will be kept private and never shared with anyone.

{ 15 comments }

Make The Money Online Dot Com May 9, 2012 at 5:48 pm

Some domains sell for unbelievable amounts of money. We talking like hundreds of thousands of dollars. Thanks for sharing John

Cheers
Lloyd

ps. Congrats on making the front page :)

Dave May 9, 2012 at 10:14 pm

Hi John, You know what bothers me a lot?

I don’t like it when you accidentally let a domain expire and then the registrar ‘temporarily’ holds it for themselves. I have even seen them buy it themselves.

When they ‘hold’ it, one in particular wanted me to pay $250 to get it back – might have been $200 – I was very mad and very unhappy with the registrar for doing that.

another flat out bought and kept my domain. That was even worse.

Have you heard of this happening before?

Abhik May 10, 2012 at 9:47 am

That’s why there is automatic renewal option. Why didn’t you opted that?

Anil Agarwal May 10, 2012 at 2:26 am

I haven’t get into this business. But thinking of trying my luck with them. In the past, I had used Flippa for selling well established websites and blogs.

Richard May 10, 2012 at 4:36 am

Hi John,

How does the sofware calculate the values seen in the screenshots? Over $3000 for a $12 domain?!

Surely a domain is only worth the price that somebody is willing to pay and not some arbitrary amount?

Seems like a bit of a gamble to me

Team Protrada May 11, 2012 at 9:05 am

Hi Richard,

The estimated values are actually pulled from several reputable sources that use proprietary formulas to calculate the value of a domain.
You are in fact right that a domain is only worth the price that somebody is willing to pay, but there are many factors that are taken into consideration when the value is calculated. In addition, there are many other factors one should look at, other than the value, before determining that a domain can be profitable.
There are quite a few education videos on Protrada that can help make you aware of all these other elements.

faisal May 10, 2012 at 5:25 am

I feel it is a saturated market and with so many options like .net, .org, etc, people might not opt for your .com domain at a hefty premium.

Profit Academy May 10, 2012 at 8:33 am

I can certainly see the potential in domain buying, especially if you follow growing trends or seasonal markets which brings new opportunities, rather than trying to buy a domain for a popular keyword, which is almost impossible these days, unless you have big bucks to persuade the owner to sell.

Team Protrada May 11, 2012 at 9:08 am

One great way to go about buying domains in a market that has so much out there without having to spend over the top is following the Drop listings. Through Protrada, you can review domains that are pending expiration and become available for purchase, starting at only $15.

Thank you,
Team Protrada

Abhik May 10, 2012 at 9:52 am

I used to do domaining once. I have had very good success, but had to call it off due to lack of capital.

Ron - SEO Copy-e-Writing Blog May 11, 2012 at 4:18 am

You are contradicting yourself. You were “successful” in domain trading. And you had lack of capital?! Weren’t your working capital obtained from the business operations itself? Please explain.

lazaro rendon May 10, 2012 at 2:23 pm

Greetings john i have no clue with buying and selling domains. Whats the best and easiest way to learn this stuff for me with no experience or knowledge ??

Team Protrada May 11, 2012 at 9:10 am

Hi Lazaro,

Protrada is a fantastic place for beginners to start venturing into domain trading. Protrada is very user friendly and offers a plentiful of education material that can not only help you learn how to operate Protrada itself, but provide with valuable and useful information you should know before starting to buy and sell domains.

Thank you,
Team Protrada

Ehsan May 14, 2012 at 1:50 am

If he is making more than $30 million a month than maybe he is buying and selling more than 1 million domains a month right John?

Dave May 16, 2012 at 11:47 am

Hello,
The idea and cost is very effective esp with all the plugins.Would be more marketable for chow if he can show some of his WP site installed.
What about the header and Navigational panel?
Dave