Why You Shouldn’t Resell Domain Names

November 24, 2011 by  Filed under: Domain 

Right now you’ve probably got a one track mind just like I had when I wanted to become a domain name reseller a few months ago.  I got off to a slower start than I would have liked, but after heavily marketing and promoting my domain registration and web hosting site, I’m starting to make sales.  This was not easy and has led me to write on why you shouldn’t resell domains.

First, there seems to be a saturated market.  You’ll have several people just like you and then the top registrars all to compete against.  It’s not that you can’t beat the competition and get your share of the pie, it’s just that there may be easier outlets to get money.

Another drawback is the up front cost.  For example, the pro plan is about $200 and basic is $90.  That’s a decent chunk of change out of your wallet for something you will need to invest more time and money in.

Furthermore, you should not to buy a reseller package is to save money on your own registrations.  If you’re a savvy enough domainer or webmaster, you can find promo codes lower than reseller prices.

I was also discouraged in that you really can’t SEO the store front unless you want to redesign it. 

Last, if you plan on going the sponsored ads route, it doesn’t appear effective in an immediate ROI outlook.  As you would expect, PPC prices are high and my conversion rate hasn’t been great.  I’ve read the same from other resellers.

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