A domain can sell for a lot more than it costs to register. If you’ve wondered how to buy and sell domain names for profit, it’s simple to explain and a bit harder to do well. You buy a name someone else will want, then you find that person.

Toys.com once sold for $5.1 million, but don’t let that set your expectations. Most people doing this make much smaller amounts, and plenty of names never sell at all.

Before you buy anything

This takes time. A domain can sit for weeks or years before anyone asks about it, so you need to be OK with waiting.

Stay away from trademarks. Buying a domain with a brand’s name in it can get you in legal trouble, and you could lose the name anyway.

Set a budget you can afford to lose. Domains are cheap one at a time, but renewals add up fast when you’re holding a lot of them. Start with a few and see how it goes.

How to buy and sell domain names, step by step

Step 1. Look for words people search for

Start with a niche you know, because you’ll spot good names faster. Fitness, pets and home services are good examples. Then use a tool like Google Trends to see what people are actually looking for.

Local names can work well too. Something like ChicagoLeakyFaucets is exactly what a plumber in Chicago might want.

Step 2. Check what’s available

Run your list through a domain search. Most people will want a .com, but a .org or .net can still be worth it. Our post on picking the best TLD explains the differences.

Step 3. Buy your best few

Pick the names you’d actually feel good about owning. If a great name is taken, it may be for sale or up at auction. Here’s how to buy a domain name from someone else.

Keep everything with one registrar so you always know what you own and when it renews.

Step 4. Find a buyer

This is the hard part. Nobody will find your domain unless they’re already looking for it, so you’ve got a few options:

  • Wait for someone to find it and reach out. It works sometimes, but it’s slow.
  • Contact companies that could use the name. That plumber in Chicago isn’t going to find you on their own.
  • Park the domain on a simple “for sale” page so anyone who visits knows they can buy it.
  • List it on a marketplace like Sedo or Flippa, where buyers are already shopping.

Set a fair price

Big sales get the headlines, but they don’t tell you what your name is worth. Before you name a price, read our guide to estimating domain name value. It’ll keep you from asking too much, or selling too cheap.

Start small

We’d start with a handful of names and treat it as a side project. Learn what sells, drop what doesn’t, and only buy more once you’ve got a feel for it. Our post on how domain flipping works goes deeper if you want more.

When you’re ready for your first one, see what’s available.