What is Domain Reselling?

November 24, 2011 by  Filed under: Domain 

The subject of Domain Reselling is one that has grown rapidly over the past few years with more and more people becoming involved in the idea of it. As the Internet has expanded to include numerous personal websites and sites that are being used as an extension of a business; Domain Reselling has started to dominate of lot of online activity.

This idea of Domain Reselling was first brought to light by web design companies who wanted to serve their clients as best as they could. So in order to fulfil this, these web design companies decided to provide extra services in addition to the basic site design and web development that was already on offer. This is when a lot of these companies approached ICANN to form a partnership. ICANN is a worldwide corporation for accredited domain name registrars. If a partnership is formed between ICANN and these web design companies then these web design companies can begin to sell domain names directly to their own clients using their partners’ registrar system.

Starting a domain reseller business involves finding an ICANN Accredited Registrar that offers a reseller program. In most cases the reseller is provided with a user interface through which they may register, renew, and transfer domain names using the registrar’s own system. Often they are also provided with software to create their own branded interface to present to their clients, allowing for domain name search and registration from the reseller’s own site. Resellers generally receive highly discounted rates from the registrar because of the volume of transactions they process. This enables the reseller to set competitive prices for their registrations while still making a profit.

If planned well it can be an inexpensive way to build a successful business and due to an increase in people wanting websites there are now more domain name registrars than ever before; 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.

Over the past few years the benefits of Domain Reselling have been brought to light and as a result Domain reselling has now expanded from merely being a few web design companies running reselling along with their web development. Many Domain Resellers are now stand alone Internet businesses. Domain resellers provide registration of available domain names for their clients, and often also engage in the process of acquiring expired domains from a Drop registrar for later resale.

With the increase in Internet business revolving around Domain Reselling there are now more ways being brought about of Domain Reselling occurring. A domain name auction can provide the reseller with another means to buy and sell domains, and a savvy investor can build a successful business around the right domain properties.

In the society that we live in today it is safe to say that if you already own an Internet based business such as web design or web hosting then getting into the business of Domain Reselling is a must, which is why most web design, hosting companies and programming houses offer domain names and domain name management as a value-added service to their offerings.

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