Is Buying Domain Names Profitable?

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Is Buying Domain Names Profitable?

This is in response to a question a fellow Moz community member once asked in Q&A, and we thought that it deserved its own article. Buying up expired domains, or purchasing keyword-driven domains is becoming more popular amongst the internet "get rich quick" crowd. The big question is: Can you make a profit by buying and selling domain names? If you get the right one, sure. If you plan on repeating the process over and over, probably not.

Something wise my father once told me "Something is only worth how much someone is willing to pay for it." This small seemingly unimportant statement has guided me in many selling and purchasing decisions in my life. Sometimes, it makes the reality all too apparent. So, …show more content…

This is a very basic example used to put the costs in perspective. Most SEO providers charge more than $50 per hour, and you get what you pay for. The above example of a final labor estimate is probably much higher, or if the domain is already ranking high and the owner wants to sell, so is the initial purchase price. Since this is often repeated many times over for multiple domains, it could get time consuming, and expensive.

2. You might get someone's dirty laundry

It's ranking high today! What could be the problem? NO. JUST STOP. Unless you know the entire history of a domain, you may be setting yourself up for failure before you begin. SEOs (and business owners) use a variety of tactics to get a site ranking high in search results. For some of these methods, we'll just call them "questionable". These methods could include everything from buying links, overuse of directory submissions (non-industry related), duplicate listings, poor quality backlinks, and guest blog comments.

With a domain of this type, it could be very easy to get it to rank quickly, before the powers that be see the domain for what it is, and put it on the blacklist. While that study is being done, you could end up with a domain that has a lot of problems coming down the pipeline that you are completely unaware …show more content…

It undermines your quality and reputation

If you know how to get websites to page one, why are you not marketing that fact to potential clients and consumers or would-be domain purchasers? Trying to get a keyword driven domain to rank high and sell it off for a profit isn't a good investment, either time wise or for the long-term success of your company. Instead, use sites that you have already ranked high as an example of how awesome you are and sign them up for a monthly fee, rather than trying to sell them a "make money now" domain.

Demonstrate SEO prowess to potential client using existing sites as proof of results
Sign up client for basic SEO services at $600-1000 (depending upon site and competition) per month
Invest 30-40 hours in making the client's site soar in results
Client is happy. Refers friends and other business owners your way
You get: More clients, better reputation, month recurring income, and gain a positive reputation for being a quality SEO provider.
4. It's not sustainable income

Remember that guy we said we knew? in the second paragraph? Well, we talked to him to find out if all the bling and glamor behind selling domains was true. This is what he

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