The Secondary Domain Market: A Primer for Small Business Owners

For small business owners, establishing a strong online presence is indispensable in today’s digital age. A crucial aspect of this presence is your domain name, which is your brand’s address on the web. While everyone’s familiar with purchasing a new domain, there’s a lesser-known market that can prove advantageous: the secondary domain market. This article dives deep into the intricacies of this market and how small business owners can leverage it.

What is the Secondary Domain Market and What Domains Belong to It?

The secondary domain market comprises domains previously registered but are now up for resale. These could be domains that were purchased and never used, domains from businesses that no longer operate, or domains bought explicitly as investments. Unlike fresh domains available for standard registration prices, secondary domain prices are dictated by demand and perceived value.

What Are Released Domains (Drops)?

Released domains, often termed “drops,” refer to domain names that were once registered but weren’t renewed by their owners post their expiration. These domains enter a grace period, after which they’re released back into the market. Drops can be valuable, especially if they had a significant amount of traffic, a short and memorable name, or specific keywords.

Domain Parking: What Is It and How to Make Money on Resale?

Domain parking is a method where domain owners direct their domain to a temporary web page when the site is under development or when the domain is up for sale. Monetized domain parking involves displaying ads on this parked page. When visitors click on these ads, the domain owner earns revenue. Besides this passive income, a well-parked domain with consistent traffic can fetch a higher resale price.

How to Make Money by Reselling a Secondary Domain?

Research Potential Domains: Use tools like NameBio to understand the sale history of similar domains.
Assess Domain Value: Consider factors like domain age, keyword relevance, and traffic potential.
Negotiate Smartly: Whether buying or selling, honing your negotiation skills can ensure you get the best deal.
Use a Reliable Platform: Platforms like Sedo or GoDaddy Auctions are credible spaces for domain transactions.

Practical Advice on How to Choose a Secondary Domain (Drop):

Prioritize .com: It remains the most recognized and trusted domain extension.
Check the Domain’s History: Ensure it hasn’t been used for spammy purposes using tools like the Wayback Machine.
Aim for Short and Memorable: Avoid long-winded or complex names.
Avoid Numbers and Hyphens: They can often lead to confusion.
Consider SEO Value: Domains with relevant keywords can give you an edge in search rankings.

In essence, the secondary domain market offers a plethora of opportunities for small business owners. With astute decision-making and thorough research, this market can serve as a game-changer in establishing a robust online brand presence.