How to Resell Domain Names and Make Money

How to Resell Domain Names and Make Money

Several of the large registrars allow individuals or small businesses to buy website names and then re-sell them to other customers. You’re not buying up a whole bunch of old website addresses and trying to sell those names. Instead, you’re basically becoming a registrar and selling domain names on your own. In other words, you’re a domain name reseller.

Basically, you buy a reseller package that guarantees you a lower price from the registrar. Often times, the registrar provides a turn-meaningful template website for you to use so you can sell those domain names at a higher price and make your commission.

For example, let’s say you become a reseller for eNom. They set your price at $9.95 per year for website name. If you sell .coms for $15.95 (your retail price), you’ll have to pay $9.95 to register the domain, $0.95 as a “merchant service fee”, and then an additional $0.47 (3% of your retail price) as a “merchant sets convenience online access fee.” Bottom line is that you make $4.58 as your net commission from the sale of one domain name. Depending on how much business you get, how much traffic you can move by, and how much you’re willing to pay upfront as a set-up cost to be a reseller, you can get different rates when you buy your domains.

In the eNom example, in order to get your domain name price at $9.95, you would need to pay $495 in set up fees. If you wanted to sell eNom names without a setup fee, the domain name price that you would get is $10.95 per year which eats into your commission. however, you could pay a larger set up fee like $995 and get price of $8.95 per year. If you were willing to pay $1595 in set up fees, you could get pricing of $7.95 per year. You get the idea.

To put this all in perspective. eNom allows their strength resellers to domain names at $7.95 per year. If you wanted to buy a URL from eNom directly, you have to go to their eNom Central website which website addresses at $29.95 per year. This indicates that eNom is making over $20 commission on the sale of their domain names. Would you be able to domains at $29.95 per year? Probably not. There are several good domain name registrars out there that names at $10 per year including domain name privacy registration. You just need to know where to look.

As an interesting side observe, eNom advertises on their reseller FAQ page that they never request your retail customer and that all tools and email communications are private labeled with your company name. The fact that they need to state this information on their website raises some questions about what the other registrars are doing.

leave your comment