Well-planned resale of domain names can be an inexpensive way to create a successful business. Currently, there are more domain name registrars than ever before; as a result, not only increased competition, but also significantly reduced prices for domain names, which makes it easy to enter the market.
If you already have a business on the Internet, then you should all the more be engaged in selling domain names. Most companies that are engaged in web design, hosting and programming, offer domain names and domain name management as an additional service.
Choose a registrar
If you want to become a reseller, then one of the most important aspects for you is choosing a registrar. The best way to succeed is to choose a registrar who has been approved by the Internet Assigned Names and Numbers Corporation (ICANN) – such companies were allowed to create domain names and sell them without intermediaries. If your choice falls on a registrar who has not been approved by ICANN, then this essentially means that you resell the reseller domains, which is an extra step in the registration process and that usually costs you more.
Once you have chosen a registrar, you should think about a few things:
* Volume discounts: registration services and volume packages can be an extremely profitable business if you a) choose a good pricing structure; b) advertise your business well. For large resellers, this approach is extremely cost-effective in view of the volume, since the price for a single domain will decrease with increasing sales. The only drawback of volume discounts is that resellers will need to sell a very large number of domain names before they receive a tangible return on such discounts.
* Promoting your business: In addition to the fact that reselling domain names can be an inexpensive way to create a successful Internet business, this path can also be very difficult – as mentioned earlier, the business associated with domain names is full of competitors. As a result, you will need to figure out how to make your business stand out from the rest, no matter if it comes from stocks, trademarks, advertising, or a combination of the three methods listed.
* Increased sales: Customer retention is the key to repeated profit. One of the methods of obtaining such a profit is an attempt to increase the sales of your domains; in other words, to encourage buyers to purchase a domain name for several years in advance, and not to renew registration every year. For the buyer, such an agreement benefits from the fact that for several years he should not worry that he needs to renew the registration, and you benefit from the fact that you guarantee yourself a reward every year. However, most buyers are often reluctant to ensure the safety of their names for a period of more than one or two years, because the price of a domain name increases with the increase in the tenure of the domain name. Therefore, try to keep your annual tariff rates as low as possible.
* Additional services and partnership: If you successfully retained the buyer, then why would you stop on domain names? By establishing partnerships with other companies that offer such Internet services as web hosting and web design, you can offer additional services, which can turn into an additional source of significant income.
These sentences are just the tip of the iceberg. Bringing a domain registration business to success under a reseller program needs strategic planning, high-quality service and creativity. Open your eyes and you will find a way to rise above those thousands of resellers who have already flooded the market.