Registration Fees -Domain Name Auction Everywhere in the world, thousands of great domain names are expiring, and since thousands of domain name holders did not renew their expired domain names, thousands of people are also bidding for such terrific domain names. With this fact, the concept for domain name auction was born. In the domain name auction, those domain name holders who have not paid their registration fee or did not renew their domain names could find their corner of the internet, their domain names in general, being sold off to the highest bidder. Well, this is how domain name auction works. Numerous research studies about the domain name auction process have considered that many companies today are catering to domain name auctions for the reason that they wanted to gain some benefits from those expired domain names or for those domain names that are not paid. So today, many domain name registrars have told the domain name holders to pay the renewal or registration fees for the reason that they have only a few days left to hand over the cash. And the concept of domain name auction came out when the money is not forthcoming. With this domain name auction, thousands of people are expected to come under the hammer. The domain name auction also surfaced due to the fact that there are some domain name companies who do not settle their debts. With such situation they were forced into a domain name auction for their own name. Since the domain name auction greatly involved

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Domain names, are, for the most part, are sold on a first come, first served basis. That is to say, the first person to register any particular name, retains control of that name until they either transfer (often by selling) that domain name to another person, or fail to pay their annual renewal fee.  This means that the person who is first to recognize the value in a previously unregistered domain name, can register it, and keep it until able to sell it for a profit. Since many types of domain names, including, com, net, org domains can be registered for just a few dollars per year, and but the value of owning some domain names is many times that, there is a potentially lucrative fee in selling on (“flipping”) these domains in what is known as the aftermarket.

There are however some important facts you need to realize before considering entering this business:

1. Most domain names are not particularly valuable in themselves – so if you register the wrong names, you will probably have a hard, maybe impossible, job of selling them on. In this case, you will of course be out of pocket for the registration fees of those domains that you fail to sell.

2. Most of the obviously valuable domain names, such as commercially lucrative single word com domains have been registered a long time ago. You can’t expect to find low hanging fruit like that. Instead, you must know what types of domain names are in demand, and look for available but potentiallysaleable domains in those particular areas.

3. If you register domains that infringe trademarks (this is known as “cybersquatting” or “domain squatting”), you are unlikely to be able to sell them. Furthermore,the trademark holder may come after you using domain dispute procedures to try to get the domain, or may even sue you in court.

4. As well as knowledge of the research, sales and marketing aspects of domain flipping, to be successful, you will also need to learn about the technical procedures for transferring domains, as well as when and how to use domain escrow services.

In short, like any other business, success with domain flipping does require knowledge and expertise. There are also risks involved (some of which are mentioned above), and you also need to know about these. Some of these things you can learn along the way, but you may also find it helpful to talk to other people with experience in the domaining industry, and perhaps to read guides such as Brian Pubrat’s “Domain Cash Vault” or Edwin John’s “How I Sell My Domain Names”.

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Domain names are names that are used to identify web sites, the best known varieties ending in .com, .net, and .org. Some examples of well-known domain names include,,,, and With a couple of caveats, people can register almost any domain name that they like (although their are certain rules about what characters in names are allowed, etc.) for just a few dollars per year. The most important caveat is that only one person can have a particular domain name registered at a particular time, and for the most part, it is first come first served.

The first come first served philosophy behind the domain name system, has resulted in the creation of a marketplace. Those people who are the first to identify a valuable domain name, can register it for just a few dollars, and potentially resell it (“flip it”) for a much higher price, making a hefty profit. In some cases, although these are exceptional cases, domain names have been resold for hundreds of thousands of dollars.

There are however a few things that you however need to be aware of:

* Many, perhaps most, domain names registered for resale purposes are never resold. Identifying the kind of names that can potentially be sold requires knowledge of the domain marketplace, and knowledge of how to market a domain for resale. Even for expert domain resellers, it may be hard to sell any particular name – so instead they typically rely on having a portfolio of names, and making a profit from selling just a few items in the portfolio. Obviously however there is of course a risk, especially if you don’t know what you’re doing: if you buy domain names and fail to resell them, then you are out of pocket for, at least, the price of registration fees.

* Bad faith registration of domain names containing trademarked terms (known as “cybersquatting”) can lead to loss of that name, or perhaps even getting sued. Therefore, if you want to be a domain flipper, you need to educate yourself about these issues, and also stick to registering generic domain names.

I won’t pretend that I myself am an expert in this area – I’m not – however I do find the whole subject fascinating, particularly the fact that people are making money simply by flipping domains. If you want to learn more about domain name flipping, you might consider reading one of the guides written by people with personal knowledge of this business, such as Edwin John’s “How I Sell My Domain Names”, or Brian Pubrat’s “Domain Cash Vault”.

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