It becomes clear, then, that buying and selling domain names can be quite lucrative if done properly. The more registered domain names you own and are willing to sell, the more money you can make from people who want to use them. If you are interested in buying and selling domains, however, you must first do a little research. If you own several domain names, but they aren't ones that most people would be interested in using, then you are sitting on inventory that isn't going to move – and this inventory costs you money. Domain name registrations need to be renewed periodically, and this always involves a fee. To actually make money selling domain names, you need to own names that are popular. If you own a domain name called “JustSomeStuff.com”, there probably isn't going to be a big market for it. If, however, you own a domain named called “Plumbing.com”, you may find that more people are interested in using this name

The most popular method that people use to make money from selling domain names is to become a domain name reseller through a domain name registrar. Using this method, you buy and register available domain names from a licensed registrar at wholesale prices, and then you can turn around and sell these domain names for a profit. Licensed registrars usually welcome this type of business transaction, as it drums up more business for them, since the resellers provide most of the advertising. Many large domain name sellers are actually resellers for even larger domain name registrars. This type of business relationship is common.