Ever heard of a website domain auction?
While you can buy vintage art, antiques, and even expensive wine at traditional auctions, in the digital world, website domain names are considered collectible—and for good reason.
In this guide, we will explore what a website domain auction entails and how it works. Let’s dive in!
So, What Is a Website Domain Auction?
A website domain auction is essentially an online marketplace where you can buy and sell website domain names — or the web address you type within your browser to view a website.
So, how does it work?
In a website domain auction, sellers offer domain names to the highest bidder (with the end goal of making a profit, of course).
On the other hand, buyers can acquire a domain name of their choice.
But when buying a domain name, it is critical to remember the following tips:
- Older domain names typically demand a higher price for obvious reasons (such as better top-of-mind recall).
- You can buy generic but highly valuable domain names (read: business.com) or go for more niche-specific ones.
- Most of the domain names in these auctions have already been registered by someone else in the past. They may have used the domain previously or might have bought it as an investment.
Either way, a domain only goes up for auction when the current owner wants to sell it. That’s where you come in.
You can bid on the domain name you want, and if you have the winning bid, you’ll become the owner of a new domain. It’s that simple!
Pro tip: Always do your research to see if the domain name is available or not. You don’t want to bid on a name that isn’t available in the first place — it will be a waste of money and time.
7 Tips on How to Auction Website Domain Names
If you’ve got a domain name to sell, these seven tips can help you to auction it like a pro:
Take Your Time to Evaluate
After you create an account with the right marketplace, think about what the ‘right price’ for your domain name should be.
This value is often dependent on various parameters, such as:
- Domain length
- Keywords used
- Relevance to the target audience
- Domain extension (such as .com, .net, and so on)
Pro tip: Consult with domain experts to get an idea of the market value of your domain name. You can also enquire if the marketplace has any in-built pricing tool to determine your domain’s value.
Auction Platforms are Next
The next step would be to browse through two to three online platforms that specialise in driving domain auctions.
Some popular platforms that should be on your research list include Sedo or Flippa.
Work on Your Listing
Once you’ve chosen a platform, you’ll need to create an in-depth listing for your domain. Make sure to provide all details about the domain (think: name, registration information, and a USP-oriented description) to make it appealing.
Pro tip: Add metrics such as website traffic, income earnings, etc., to upsell your domain name.
Decide Your Reserve Price and Deadline
You can set a reserve price — or the minimum amount you’re willing to accept for your domain. If the bidding doesn’t reach this amount or doesn’t sell within the predefined timeline, you’re not obligated to sell.
Pro tip: Think about the duration of your auction. While most auctions last a week, shorter auctions can create a sense of urgency for potential buyers, making it a smarter choice.
You must also enquire if the online marketplace has any auto-extension features that can extend the deadline of the auction.
Promote Your Auction Across Channels
Share the news of your domain auction on relevant social media platforms that your buyers frequent, across relevant forums, or with potential buyers within your professional and personal network.
Remember, the more exposure your auction gets, the better the chances of attracting high-quality leads.
Engage with Bidders Organically
Throughout the auction, engage with potential buyers. Promptly respond to their inquiries. Be upfront and honest about your domain name.
Remember, you want to build trust and encourage more active bidding at every step of the way.
The Final Step
Once you have a winning bidder who meets (or exceeds) your reserve price, the platform will facilitate the transfer of the domain name to the buyer.
This typically involves domain transfer instructions and a secure escrow service to ensure a safe transaction.
Website Domain Auctions Are Worth the Investment
Here’s the long and short of it: A website domain auction is a place where you can buy domain names from a seller. It’s a foolproof way to get a memorable web address for your website or invest in a valuable digital asset that will only be appreciated with time.
So, whether you’re a small-time business owner looking to establish a rock-solid presence or an investor seeking revenue-making opportunities, website domain auctions are worth exploring.
If you still don’t have a domain, register yours from a reputable domain provider like Crazy Domains. We’ve got a wide range of domain options you can invest in and put up for auction in the future!
