The value of your domain name can range from a few pounds to potentially millions (although the latter is very unlikely). In fact, back in 2014, the domain Cars.com was valued at and sold for a whopping $872 million, making it the most expensive domain name ever!

Whilst you probably haven’t a domain name worth quite so much, it’s possible you could sell your unused domains for a nice amount of cash – provided you know how to sell domain names and how much yours could be worth. But how do you go about this?

If you’re interested in selling a domain name, keep reading to find out the factors influencing how much a domain name costs and the steps involved in the selling process. Let’s get started!

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Tip: To gain an in-depth understanding of domain names – including what they are, how to choose them, how to buy and sell them, and much more – make sure you read our Ultimate Guide to Domain Names.

How to sell a domain name for profit

To sell a domain name for profit, the first step is to pick the right price for it. Price it too low and you won’t see a return on your investment, but price your domain too high and no one will be interested in buying it – especially if they can simply buy a cheap domain name from a reputable domain registrar like Fasthosts!

The tricky part is that lots of different factors will influence the value of your domain name, so you’ll have to take all of these into consideration when determining your price. We’ll discuss these factors in more detail below, but first, here are some ways you can boost the value of your domain before evaluating it and selling it:

  • If you haven’t already, build a website associated with the domain name – this will demonstrate its potential value to buyers.
  • Create SEO content for the site to drive traffic, making the domain more valuable.
  • Establish a social media presence with the domain to boost brand awareness.
  • Register domain variations like .com, .net, .org and localised variations like .co.uk – this can make the domain less vulnerable to cybersquatters and therefore more valuable.
  • Similarly, you can protect your domain and increase its value by trademarking it.
  • Ensure your domain is targeting a specific, in-demand niche to appeal to buyers.

By following the steps above and managing your domain appropriately, you can make your domain name more appealing to potential buyers compared to new domains they can register themselves. This is because your domain will have SEO value, traffic, and brand authority built in from the start. 

Interested in flipping domain names as a side hustle? Always buy domains with resale value, such as those within popular niches you’re familiar with. If you have a good understanding of the target audience, you’ll have a much better idea of what they’re looking for and what they’re willing to spend compared to other domain sellers.

Selling a domain name: How much is it worth?

Once you have a domain you’d like to sell, the next step is to determine its approximate value before advertising its sale. Wondering how much your domain could be worth? Use the following factors as a guide.

Domain length

Shorter domain names are much easier for people to recognise and remember. Because they can offer much better brand recognition for customers, short domains can be a lot more valuable than overly long, complex ones.

Domain age

Older domains can be more valuable because of their pre-existing traffic and page authority. In fact, search engines like Google even use domain age as a ranking factor for websites.

Domain extensions

Certain domain extensions, or top-level domains (TLDs), tend to be more valuable than others. Domains with a .com TLD usually sell well because of the overwhelming popularity of this extension. New TLDs like .bar or .game may have less overall interest, but they could sell for a lot more if you find a buyer within the right niche.

Keywords

Keyword-rich domain names (i.e. domains that contain relevant keywords for a specific niche) can be very valuable because of the traffic they attract. If your domain contains a relevant keyword with at least 200 searches per month, this is a good sign.

Existing traffic

As established earlier, domains linked to an existing website with a decent amount of traffic will be more valuable than domains with no existing online presence.

Brandability

Similar to domain length, domain brandability is a key factor in determining the value of a domain name. Is the domain unique, snappy, easy to remember, and easy to advertise? If so, your domain could be pretty valuable.

Niche

Local or industry-specific domain names will be particularly attractive to certain buyers, meaning you can sell your domain for more if you know who to market it to.

Expiration date

Sometimes, recently expired domain names can be bought cheaply from owners who aren’t interested in them anymore, allowing you to sell them on for a good profit.

Selling a domain name: Domain valuation

In addition to considering the factors above, you can use an online domain valuation tool to help you set a reasonable price for your domain name. These domain appraisal tools use SEO-related metrics like backlinks and domain authority to calculate an estimated value for your domain. 

As part of your market research, you can also use these valuation tools to look at similar domains within your niche to get some ballpark figures. Make sure you research previous domain sales to discover what these similar domains have sold for in the past, as this will give you a better idea of what to expect when selling your domain name.

However, price estimates aren’t everything. Even if you’ve done plenty of research and used the best tools available, your domain is only worth what someone is willing to pay for it. Use your estimate as a tool to help you get the best price possible – not as a guarantee that you’ll earn a certain amount of money from a domain.

How do you sell a domain name?

The actual selling process can be fairly lengthy, but as long as you follow these steps, you should be able to complete the sale smoothly. 

In a nutshell, here’s how to sell a domain name:

  1. Park your domain. This means your domain name isn’t currently connected to an online service like web hosting or email hosting, making it less vulnerable to cybersquatters.
  2. Appraise the value of your domain name. Use domain valuation tools and the information listed above to come up with a good price estimate.
  3. Choose a pricing strategy. You can choose between fixed pricing, flexible pricing or selling via auction.
  4. Choose how to sell your domain name. You can sell domain names privately, on a domain name marketplace, via a domain broker, or on an auction site.
  5. Advertise your domain. You can advertise directly on the domain’s website, on social media, and more.
  6. Update your Whois information. This will ensure that potential buyers can contact you directly. 
  7. Arrange payment. You can handle this privately, but we would recommend using an escrow service to keep the money safe.
  8. Transfer your domain name. You’ll need to contact your domain registrar so they can start the domain transfer process.

For a more in-depth explanation of each stage in this process, make sure you read our comprehensive guide on how to sell a domain name, or check out our Ultimate Guide to Domain Names for more information on all things domain-related. 

Take the stress out of buying and selling domain names with Fasthosts – the UK’s best domain registrar. Buy your perfect domain from just £1, and get all .com domains for FREE for the first year!

Get in touch today to learn more about our amazing domain deals, or to get personalised domain advice for your business at any time.