Buying domain names across different registrars and/selling them is a popular business and one which can produce a lot of sales. Since 2016, I have been involved in this type of business and have made over $1,000 (I’ll show you the figures).
This is a case study I’ve been wanting to do for awhile, but I wanted to wait until the sales estimates crossed 4 figures, now I can do that. Now before I get going, I know what many of you may be thinking and that is that $1,000 in 2 or so years is a joke and amounts to $40+ a month, but that’s not how this whole thing works, it’s actually an upward climb meaning the longer I keep doing what I am doing, the more these profits will grow (You’ll see).
Firstly, let me say that there are 2 ways to go about this business:
The first is that you can become an affiliate for popular registrars like Godaddy, Namecheap, Wealthy Affiliate (the one I used) as well as others and have people buy websites through you. For each domain purchased through you, there is a small but recurring commission paid out.
It can be $1-$2 depending on the program you register with. It’s a tiny amount and it’s one of the reasons why many affiliates don’t really get too involved with this, but I have made it work and it’s growing and I’ll show you how I did in this case study.
The second is actually owning a domain name, building up your own website through it, having it accrue traffic and sales to raise it’s value and then sell it on the same registrars or sites like Flippa.com. This can produce incredible profits for people and I have talked about how to do that here.
This case study however focuses on the first option I mentioned.
How I made $1,000+ selling domain names (the formula):
1) First I created a big website in 2013 on making money online (you’re on it now!) and have made it grow considerably since. For proof of how it’s doing, I have provided this case study.
2) On it, I promote a program called Wealthy Affiliate.
3) Wealthy Affiliate, in addition to being a program on online marketing education has also expanded and actually entered the domain name world in 2016 and began selling them to it’s members.
4) Each member I refer to WA, who buys a website name from them, earns me a commission. It is only $1 a year and that’s considering the person who purchased it, renewed it. Now this is $1 for EACH domain and some people buy multiple ones.
5) I’ve been able to generate over $1,000 in sales since this began with about 20% of those sales coming from people who have renewed the domain they purchased.
Here’s proof of this:
Because that report is too long to show on this article (it’s 2 years worth of reports!), let me just break down the specific numbers for you:
Since 2016, there were 972 people who purchased websites inside WA after they joined through me. Thus I was given the $1 for each person which totals to $972.
Then out of those 972 sales, 195 people RENEWED their websites (that’s a 20% renewal rate) and for that I made an extra $195.
It’s actually a lot more than $1,000 and here’s why…
While the amount made of domain registrations is indeed over $1,000, the fact of the matter is that Wealthy Affiliate is more than just a registrar, it is also a big program that teaches people awesome stuff on online business and charges them about $50 a month for a membership, which I also promote and that’s really where the REAL money comes in.
So in addition to the sales made from this case study, it is quite honestly just a small drop compared to the membership sales I’ve been making for people who signed up to that site and stayed on it as a member. The website purchasing part of this business model is just a small piece, but it adds to it.
An ever increasing opportunity:
The basic idea is that the more members I get into that program (who benefit from it), the more people will sign up and buy websites, which will continually earn me $1 for each one initially and then $1 recurring for the same people who renew it.
Overtime, these numbers can snowball into big profits and this is why despite there being only $1,000+ in sales for over 2 years, it’s actually been an upward trend, meaning…
The first year, I made a few hundred from it.
Then the next year, I made even more because there were more, new people buying up websites from Wealthy Affiliate through me AND added to it was the renewals from the previous year.
Why not go for other registrars? Don’t they pay more? Yes and no.
I once looked into promoting these kinds of things from GoDaddy. They would actually pay me more than $1 for each website registration from what I saw. But I decided not to go for it and there’s numerous reasons why (including financial):
1) While I like Godaddy and they offer a good affiliate program, the problem is that they offer too many necessary things and I felt like I’d be ripping off my customers if I sent them there.
2) To add merit to my first point, I have to personally point out that I’ve actually moved a lot of my sites/services away from Godaddy and into Wealthy Affiliate (domains AND hosting) because Godaddy kept increasing the prices every year and many of those services were just unnecessary and costly for me. In Wealthy Affiliate, a member can get many of those services INCLUDED in their membership.
Example: Hosting, SSL, and other tools are part of your WA membership, in Godaddy, they cost separate.
3) And finally, I believe the services and benefits in WA, in addition to the website registration opportunities pay me more and give the customer more in the long run. Remember, it’s not just the $1 commission I am making off my referrals, it’s actually A LOT more and the benefits of those other services make it far more financially lucrative for me to be involved in and more importantly, far better for the customer to be involved in because they get cheap domains, great tools for their businesses and awesome training, and they would actually end up overpaying for that in other places and eventually leave.
Through WA, because they stick around, I make more money every month than I would with the other places. It’s basically not the front end sales you need to analyze, it’s the long run sales. For example:
If I were to promote a Godaddy services and get 100 people to buy, say domain services and a few other things, I’d probably make a few $1,000 in a year for this. It’s not bad at all!
But through WA, if I were get the same 100 people in, and each of them would earn me $1 for a domain they’d buy, plus pay the monthly membership, I’d probably make 4-5 times as much in the same year. And they’d also be happier and that’s because they get more value out of WA and all the benefits that are inclusive there.
Are you interested in doing this same thing?
You can basically do this same thing I am by becoming a member of Wealthy Affiliate. Here is a full review I recommend you check out prior to joining.
But once inside, you are already an eligible affiliate to do the same thing I am here.