How can you sell domain names?
Domain names are still surrounded by an ambiguous atmosphere of 'making money fast'. With one exception, that time has passed: the first .com domain name was registered in 1985 and the first .nl domain followed in 1986. So we are heading towards the 40 years of domain name history and the real cowboy times are behind us. That does not mean that there is no more money to be made with a domain name sale. It means that things are better regulated (regulations on 'domain hijacking' for example) and the market (the 'trade') has become more professional in recent years.
Now Businenessforsale.eu is (or will be) not a marketplace for domains, but it will be clear that this element can be a valuable part of a (successful) e-commerce business. We certainly recognize this potential value and feel that a domain name can be listed separately on our platform as an intangible asset. We are selective about this: the focus is on online businesses and active intermediation. In this article we will provide background information about domain names, why they are interesting, what they (can) be worth and how users sell domain names through us.
What is a domain name?
To start with the basics, the Internet is a worldwide public network of computer networks. The servers in these network(s) must be able to identify each other so that it is clear where what information resides. This identification takes place on the basis of assigned IP numbers. These look like the following: 192.168.173.174 or 126.155.255.254.
This works fine. However, imagine navigating to the website of the NOS (or Businessforsale.eu :) and having to remember these IP numbers. That obviously does not work, and this is where the Domain Name System ('DNS') comes in: this system acts as a telephone directory of the Internet and links unique domain names to unique IP addresses. This linking, of course, takes place in the background, so you only need to remember a domain name to get to a website. A huge user benefit that also brings huge branding opportunities (and let's not forget the potential for search engines).
There are now over 150 million .com domain names and over 6 million .nl domain names (2023). Most of these registrations have value primarily to the registrant (the "registrant"), but a smaller proportion of these registrations are also valuable to a broader audience. The latter group includes domains where Businessforsale.eu may be able to play a role in mediating the domain sale.
Domain name value
But where does the value of a domain name lie? In this article we focus on the market value, i.e. the value of a specific domain for a broad target group. So not 'Allotmentgardentherosewater.nl' but 'Allotmentgarden.nl': the first domain name is in fact only interesting for the association with that specific name. The second domain name is interesting for a broad target group and therefore has (more) market value. Now, determining the value of a company is already difficult (and by definition subjective), but with a domain name (without directly related cash flow) it is even more difficult. We will limit ourselves in this article to the elements of a domain name that we see as valuable (to an e-commerce business).
Genericity of the domain
The larger the potential group of users that might be interested in it, the higher the value. So this ties in 1 to 1 with the Allotmentgarden example and is the core of a really good domain name. These are also called "category defining domain names. If you sell (only) bicycle locks, then in my opinion there is no better domain for your online business than Bicylclelock.nl or Bicyclelocks.nl. Of course, this does limit expansion to other target groups, but within the niche the advantage is great.
Availability
Domain extensions where it is now difficult to find a suitable free name anymore (and .nl already falls into that category), by definition have higher prices for the registered domain names that change hands. In addition, within each extension, there are availabilities based on the number of characters: for example, only 676 domain names are technically possible with 2 letters and only 17,576 with 3 letters. So length has a positive impact on domain name value (in the sense of "the shorter the better"). Now we do see a wave of new domain name extensions since about 5 years. The so-called generic TLDs like .shop, .site and .whatever you can think of. In some cases these do well (think .shop), in many cases you have probably never heard of them and I wonder if that time will come. Call me old school, but in my opinion a Dutch online business should have a .nl domain name (and many SEO experts happily agree with me :).
Brandability
Good domain names are easy to remember and (thus) brandable. Short domain names have an advantage in this regard. So are existing words. And make sure you have a domain name that doesn't have to be spelled out in a radio commercial, otherwise the listener won't know how to find you online....
Historical use
Domain names that have been used in the past may have additional value due to domain authority already built up. Among other things, consider backlinks (which support in the rise in search engines). Note that historical use can also be a negative factor.
Business case
The business to be made certainly plays a role. Do a quick and dirty calculation for a specific domain according to the following line of thought. Let's say 'Dogleash.nl': Take the search volume on 'Dog leash', make an assumption of the position your online business with this name will occupy on the keyword and the traffic this will generate. Multiply the result by the average conversion rate and the average absolute gross margin on orders received. This is approximation work of course, but it will be clear that, according to this reasoning, Dogleash.nl should be more valuable than Thimblehats.nl.
Selling your domain name
Once you have decided to sell your domain names and you have an impression of the domain name value, the next question is where to offer it. As will be clear by now, Businessforsale.eu will in most cases not be the obvious party. In addition, we are extremely selective with placements on our platform. However, we can confidently refer you to (other) specialized platforms where you can offer your domain names for sale: Sedo.com is the oldest and most well-known player. Dan.com is a relative newcomer with a more user-friendly interface. With both platforms, do keep in mind the fees that are charged: with both platforms, these are 15% that come off your agreed price. So a sale for 25,000 pays 3,750 commission. And you will receive a net of 21,250.
Sell your domain name through Businessforsale.eu
We work with a model of active mediation. This means that you cannot simply place domain names on our platform yourself. You approach us (sander.scholten@businessforsale.eu) with the domain name or domain names you want to sell. Upon a shared perception about the value of your assets, we sign an order confirmation together, before drawing up a proposition to distribute within our own network and beyond. Buyer contacts we initially handle for you and both your data and exact domains remain anonymous by default (unless you wish otherwise).
When can we be of service to you?
- Generic top level domain names ("Exact Match Domains")
- Only .nl and .com
- No IP
- Minimum expected deal value of 10k
A successful domain sale
Determining the value of a domain name is the first step in any sales process. We have over 20 years of experience within this field and are able to give a good indication here, but it is not an exact science.
FAQ - Selling a domain name
1 - Where can I sell my domain name?
Selling a domain name can be done through several platforms. Well-known examples are Dan.com and Sedo.com. These parties work on the basis of No Cure No Pay but charge a substantial commission on successful sales. This commission can be as high as 15%.
Another option for selling your domain name is to offer a domain name via Facebook groups such as "Domain Name Group" without mediation.
If you are convinced that a domain name is valuable for companies or individuals in a specific industry you can of course also write to these parties directly, who knows that a perfect match will come out of this. The advantage of this is that these parties often assign more value to the domain name because the name fits well with them.
2 - How do I transfer my domain name?
Transferring a domain name is easy via the registrar or provider. You can tell the new owner to the registrar who will then update the name of the domain name holder and the relevant details. The registrar checks that you are the owner of the domain name but otherwise has nothing to do with the deal.
3 - What is my domain name worth?
The value of a domain name can be estimated with the help of specialists, however, it is important to remember that the value of something non-physical is even more difficult to determine than the value of a used car, for example. There are no parts whose value can be determined by production cost, lifespan, use, etc. Therefore, the value depends entirely on the value that buyers assign to the domain name.
There are several parties, such as domain name marketplaces, that use an auction process. This allows potential buyers to make bids that make the current market value somewhat tangible. Examples of such marketplaces are the aforementioned Dan.com and, in the Netherlands, Domeinstock.nl.
4 - Which domain names are worth a lot?
The most valuable domain names are generic, applicable to a large audience, short and powerful. By this we mean; easy to remember and written as it is pronounced.
5 - Where do I register my domain name?
You can register domain names with a so-called registrar. A registrar is a company that mediates in the buying and selling of domain names and manages them. There are many in the Netherlands, so check which registrar suits your needs.