If you are looking for making some extra money, you should look into the domain names field as reselling domain names can be a very good opportunity for improving for financial status. But under one condition: to plan your every step very well.
Nowadays, domain names registrars are everywhere. This is a good thing are more domain names registrars bring better services and stronger competition, but it also means lower domain name fees. And lower domain prices represent an easy way of getting into this business.
So, if you are already involved into an Internet-based business, you have to sell domain names too. Why? Because everyone is doing it: Web design firms, hosting companies and programming companies also sell domain names or domain name management services in order to improve their business offer.
But before jumping to this business opportunity, you should first be aware of the fact that the most important thing to do is to choose a domain name registrar. And if you want to be guaranteed with success, than you should decide on a registrar which has been approved by the Internet Corporation for Assigned Names and Numbers
(ICANN). The reason is simple: these companies have been legally authorized to create and sell domain names on a direct way basis. Otherwise, you would be reselling the domain names of another reseller, which means a more expensive registration process and a very unpleasant step back for your business.
And even after your have decided on a domain name registrar, there are some aspect that you should take into consideration.
The first one regards volume discounts. You can make a lot of profit if you jump into the volume-based registration services opportunity but only if you have a very strong pricing and marketing strategy. This is a very profitable aspect of this business as the price for a domain decreases as the volume of sales goes up. But this has a negative side too: resellers have to sell a big amount of domain names before actually making a profit.
Another important aspect is advertisement. This domain names reseller business may be inexpensive, but it is a very difficult job if you don’t have an active marketing strategy. You have to draw attention to your offer using all the advertisement tricks you can think of.
Upselling has to be taken into consideration too. You have to make sure you are keeping your entire customers close, as this is the trick to have recurring revenue. One method of achieving this is to persuade your customers into securing their domain names for more years instead of paying for them every year. The positive strategy of this move is the fact that you don’t have to worry about selling those domain names and you get money every year for sure. And there is also an advantage for the customers: they don’t have to renew the domain names every year. They do it once, for a longer period. But this approach comes with a catch: customers aren’t jumping into this deal because the price is rising as the period of the ownership is longer. If you want to outweigh this downside, keep you multi-year prices low.
Or you can go for the value-added services and partnerships opportunity. You can close partnership deals with other Internet service companies to offer some other services that will bring you more customers. The trick here is to diversify your business offer.
These are only some basic rules you should keep in mind when going into the domain names business. Remember that running a successful business in this field requires strategy, high-quality services and lot of work. And don’t forget that creativity will make you look different and more attractive to customers! So be active and creative!
