3. How to be successful as a Domain Reseller

When a particular industry booms, multiple avenues of business appear. With the expansion of the World Wide Web and the ever-increasing number of websites, dozens of distinct online businesses that have been started from the comfort of one’s living room have emerged.

As domain names have become an in-demand commodity, the domain name registration industry has generated new business avenues for smart entrepreneurs. One such avenue that doesn’t get much attention is domain reselling.

This business model represents a fantastic opportunity for individuals and organizations to make profits based on reselling previously registered domain names. Domain reselling is basically the activity of buying domains from domain registrars on behalf of clients who want to develop brand-new websites but encounter difficulties in securing a domain in the direction they want.

If you’ve been mulling over the possibility of starting your domain reselling business, this blog post is for you. You can take a look at what domain reselling is, what it takes to run a reseller business, as well as how to get your business off the ground.

Who Is A Domain Registration Reseller?

First things first, a reseller is a person or a company that buys products or services to sell to others for a profit. Domain name resellers shouldn’t be confused with speculators who register domains, develop and host websites and then sell them to gain economic profits.

Domain name resellers, or domain registration resellers, are representatives or agents of domain registrars. What they do is they buy domain names from domain registrars on account of their clients who want to establish a website but find it challenging to get a desirable domain name of their choosing.

Such clientele usually approach domain registration resellers who explore various alternative domain names and purchase a domain of choice for their clients. Domain resellers typically get a commission fee from the domain registrar, make a margin on the domain registration cost when reselling the domain name, or bundle the domain names altogether with the services and products they offer to their clients.

The Emergence Of The Domain Name Reselling Business

Establishing a domain registrar calls for a serious investment in infrastructure, and recovering the start-up costs can take a while. And in the current ultra-competitive and overcrowded marketplace, beginning a new domain registration company can be a risky proposition because of the small margins and need for large volumes to make the business viable.

However, becoming a domain name reseller calls for a significantly lower investment. It’s comparatively easy to launch a domain name reselling business. Becoming a domain name reseller is a low-cost way of entering the domain name market. This is the main reason why domain name reselling has grown as a widespread business extension or diversification for many digital marketing agencies, web designers, web hosting companies, freelancers, etc.

How To Become A Domain Reseller?

There are two ways to become a domain name reseller. The first one is to approach the Internet Corporation for Assigned Names and Numbers, the international non-profit organization that regulates the domain name industry. ICANN offers guidelines and regulations for accredited agencies and demands you to have a certain level of assets. Once you become an accredited provider, you will get lower costs on domain name registrations.

Alternatively, you can use an ICANN accredited domain registrar that offers domain name reselling packages. To become a reseller, you will need to create and register an account with a web hosting firm so that you can host the domain names you resell.

Like all other serious businesses out there, a domain name reselling calls for elite business practice, marketing, and hard work. Registering and reselling domain names requires buying domain names. As the market is already flooded and new domain resellers are entering the market each day, becoming a domain name reseller is not a business venture for everyone.

Even though the business’s nature is unpretentious and straightforward, not every domain reseller makes profits. To become a successful one, you need to have the ability to market your services well and lure a significant number of clients for the business to be profitable. If you have all that it takes and want to test the waters, feel free to sign up for a reseller account with NameSilo and conquer the domain reselling industry.