Buying expired domain names can be a fantastic way to nab some excellent domains. Many new Domainers gravitate towards expired domains after they learn that all those incredible domains they hand-registered weren’t quite as incredible as they thought. It’s almost like the next step in the process, a movement to the next-level, which is why many Domainers convince themselves that buying expired domains means they are making real investments.
While there are incredible opportunities in the expired domain space, just like hand-regs or end-user purchases, you need to make sure you’re buying domains that make you money in some way or another. It can be all too easy to convince yourself that you’re making solid investments because your favorite droplist recommended a domain or tons of other Domainers were bidding on it.
Remember, at the end of the day an investment is something that pays you which is why it is so important to ask yourself the question, “What are you doing with your expired domains?”
Make a spreadsheet and plugin-in the last 20 expired domains you’ve purchased. Now look at what you’ve done with them, have you parked them? Sold a few? Developed one or two? Whatever you have done, how much income has that produced?
You should have a clear gameplan with every domain you buy, don’t think that just because it’s expired and other people are bidding on it, then it must be a good investment. There are expired names getting lots of bids everyday that you might not be able to make a dime with. This is why you need to take a step back and make sure you take the time to properly evaluate every expired domain you buy.
If you’re buying domains to sell to end-users then look on Google, use the Estibot Lead Generation Tool or LeadRefs, but do it before you buy. This will save you from spending a few hundred (or a few thousand in some cases) on a domain that you find-out doesn’t have the same kind of liquidity that you initially thought.
The same is true when you’re buying an expired name for development. Look at who is already on the first page of Google, do you stand a chance of out-ranking them with your current budget? Can you think of at least three affiliate programs or lead generation options you can use to monetize your traffic?
The point here is simple, these are the questions you should be asking yourself before you buy an expired domain name. It can be easy to get wrapped-up in the excitement of an auction with dozens of other bidders or a recommendation from a droplist you really like. It is critical that you look at your expired domain purchases and make sure you’re making good investments for yourself. If you’re not, don’t fear, just take the time to do the research and properly understand the investment you are making before you buy.
Like any investment strategy, you will get out what you put in. Don’t be fooled by the hype of a popular auction, take your time, do the research, and buy with purpose, it will take more time but in the end you’ll be making better investments.