Profiting from Pre-owned Domain Names

Each day, domain names that were once registered by someone expire and are deleted from the applicable domain registry database. Once a domain expires, it is available to anyone else to pick up and own. You never know when an incredible domain name may become available for registration. If you understand how the expiration process works, you could profit from scooping up these expired domain names and selling them at a premium. This article attempts to explain the expiration process and how you could profit from registering and then selling domain names using brokers, escrow services, transfer agents, and on-line auctions.

How The Process Works

When you register a domain name, it will only be active for the term of the registration. For example, if you register a domain on 1/1/2003 for two years, the domain will expire on 3/1/2003. Unless you renew your registration, the domain will deactivate on the expiration date.Deactivate simply means that the domain is no longer available for email, web access, etc. The domain will not be deleted from the domain registry (yet). After the expiration date, a grace period goes into effect. The grace period lasts for approximately 40 days during which time you may renew the domain registration and incur no additional fees.After the grace period, the domain enters a redemption period for 30 days during which time you can renew the domain, but it will have to be manually added back to the domain registry and you will incur additional fees .Five days after the redemption period, the domain will be deleted from the registry and will be available to the public once again. So when you register a domain name, you have approximately 70 days past the expiration date to renew your registration (and possible incur additional fees). We have discussed this topic in detail under the topic Lifecycle Of Domain Name

Expiration Reporting

If you are interested in picking up expired domain names, you can leverage numerous online reporting sites that will either let you perform searches on expired domains or they will send you a report each day (and even multiple times each day) listing the domain names that have been deleted from the domain registry. Some of these services will charge you a fee, usually on a monthly basis. Some expired domain services provide information regarding the current search engine placement of the domain in various search engines and directories including Yahoo. This way, you can grab a domain that is already has exposure in search engines. Some services also allow you to automatically register a domain (backorder) when it expires. By using an expiration service, you can grab a domain as soon as it becomes available.

Brokers

If you are interested in selling a domain name, you have the option of using a broker service who can help sell your domain name and broker the transaction information. A broker will not necessarily make sure that the domain name is actually transferred from the seller to the buyer, they will simply act as a sales agent for the seller. Usually, a domain broker services will either charge a listing fee for placing the seller's domain name in their database or a commission based on the agreed upon the selling price. Commissions will differ by broker but typically range between %5-%10. Brokers that are paid based on commission will attempt to actively market the domain being sold by giving it exposure in different areas of their site. Some broker services will require an appraisal of a domain name to ensure that the seller's asking price is reasonable.