If planned well, reselling domain names can be an inexpensive way to build a successful business. Today, there are more domain name registrars than ever; but while this has led to an increase in competition, it has also resulted in a significant drop in domain name prices, making it an easy business to enter.
If you already operate an Internet-based business, selling domain names is almost a must. Most Web design firms, hosting companies and programming houses offer domain names and domain name management as a value-added service to their offerings.
Choosing A Registrar
One of the most important aspects to becoming a reseller is choosing a domain name registrar. The best route to success is to choose a registrar approved by the Internet Corporation for Assigned Names and Numbers (ICANN) - these firms have been authorized to create and sell domain names directly. Choosing a registrar that has not been approved by ICANN means you are essentially reselling the domains of a reseller, a redundant step in the registration process that will typically cost you more.
Once you have chosen a registrar, here are a few things to consider:
* Volume discounts: Offering volume-based registration services and packages can be very profitable should you a) choose a solid pricing structure and b) promote your business well. The volume approach is extremely cost-effective for larger resellers, since the cost per domain will decline as the volume of sales increases. The only downside to volume-based discounts is that resellers need to sell a great deal of domain names before they truly benefit from the discount’s value.
* Promoting your business: While becoming a domain name reseller can be an inexpensive way to online success, it can also be very difficult – as mentioned previously, the domain name business is packed with competitors. As a result, you will need a way to make your business stand out, be it through promotional offers, branding, advertising, or a combination of all three. For more information on building an online brand, click here.
* Upselling: Customer retention is key to generating recurring revenue. One way to secure this revenue is to try and “upsell” your domains; that is, encouraging customers to secure their domain for several years instead of on a yearly basis. The customer benefits from this arrangement by not having to worry about renewing their name for several years, while you reap the benefits of repeat fees on a yearly basis. Many customers, however, are often reluctant to secure their names beyond one or two years because a domain’s price rises with the length of ownership. As a result, try to keep your multi-year fees as low as possible.
* Value-added services and partnerships: Once you have secured a customer, why stop at domain names? Forming partnerships with other Internet service firms, like Web hosting and Web design groups, to offer additional services can result in a significant deal of supplementary revenue.
These suggestions are only the tip of the iceberg. Running a successful domain registration business using a reseller program takes strategic planning, high-quality service and creativity. Try to think outside of the box and discover a way to rise above the thousands of resellers already crowding the market.
