Lots has been said about selling domains, but not enough about buying domains.
People and posts constantly mention the major drop services, auction houses and sales platforms, but what most won’t tell you is that those are actually NOT the best places to buy domains, not by a long shot.
The minute a domain goes into auction at a major service, there is global attention on the domains. A lot of bidders might have better industry connections to place higher value domains than the average domain investor.
When a domain investor does get into a bidding war with what potentially could even be an end user, he is no longer certain of a decent return on investment.
Which brings me to, so what is the best place to buy domains?
They have users with a certain level of expertise and knowledge that sell great domains on the cheap, just because they would prefer to concentrate on a fewer domains or prefer operating within a known industry. One man’s trash could really be the others treasure.
These two forums are also fairly strict when it comes to monitoring fraudulent users, sale orf stolen domains and other ‘due diligence’ issues which plague other domain platforms. Nothing is perfect but dealing with users with a higher reputation and trader rating at these two forums generally provides one with a modicum of security.
Whether it is psychological, as in “i’m selling to other resellers”, or fiscal, “I really need the cash to pay for these renewals or that development”, prices are remarkably lower on the forums.
There have been innumerable reports of a domain getting passed at $200 on the forum ending up selling for $900 – $2000 price range to end users. And most domain investors are aware of this fact, but somehow choose to ignore it. I find it funny that people will spend hours researching a domain they ‘might’ win at a drop service and pass the $20-$200 priced domains on the forum with nary a second look.
So the next time you think of buying a domain and are looking at reselling it below the $2k mark, check out these domain forums – NamePros & DNForum, might just end up saving you a lot of time and effort in getting the right bargain.