You’ve probably all heard a story or two where someone foresaw the popularity of a particular term or name that would be associated with a specific subject matter. They then proceeded to purchase it as a .com or other extension domain name, and before long they flipped it off to a very qualified and desperate buyer who absolutely HAD to have it for their business. While not the most well known such transaction, the biggest one was when someone made $35,000,000 for VacationRentals.com. Here at 4GoodHosting, we are a top web hosting provider in Canada, but our ‘worth’ is nowhere near such a lofty sum. With that understood, however, we do know quite a bit about buying domain names and how it’s rarely the windfall some people expect it to be. However, when the domain trade is done right and you have a little bit of luck, it is an enterprise where particularly lucrative deals are certainly not unheard of. The tactic is straightforward: domain names are purchased with the prospect of reselling them at a significant profit. The trick, of course, lies in securing domains that may be valuable to deep-pocketed buyers, like a large company, somewhere down the line. Today we’re going to discuss all the important facts and terms on the topic of selling domain names for a profit, as well as taking a look at some impressive examples of crazy high sale prices for publicly traded .com domains. Selling a domain Domains are nonmaterial goods. Accordingly, when they are sold the only transaction taking place is the actual transfer of the domain rights between users. With the exception of any instance where there is a copyright or trademark violation, pretty much any domain name can be bought or sold. However, generic domain names, such as car.com or computer.com, are not legally protected and as such can be reserved by anyone. The value of a domain is determined via a specific evaluation process. The obvious part of that would be in understanding that traders will find domains that are indexed on Google and highly ranked to be particularly attractive. (Here is a very useful free Google Index...
