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.
Now that you’ve read the worst, if you still want to become a domain reseller there is a lot to be positive about. Domain Names are an absolutely huge market with huge room to grow. Also, if you’re willing to take a loss up front, you’ll see profit in the long haul. Remember that domains renewal annually and you can also offer other tools, apps, and software such as web hosting, private registration, web design, and more. Read more about my experience as a domain name reseller and how you can get a 25% off promo code on a basic or pro resell program.
On the site, I give a price comparison chart on the cheapest domain reseller and how you can get a reseller pro plan for $65 less than Godaddy or WildWest but still get the same package. The savings should be a factor, but the real determination of whether to become a domain reseller is how determined you are to become your own registrar. To be successful, you have to utilize a great marketing campaign and make sure everyone knows they can buy domains from you.
{ 7 comments… read them below or add one }
I’m not really sure what you mean with reseller. Do you mean a person who people can register their domains through or do you mean a person with a lot of domains? When it comes to registering domains for others I used to do this for free for some of my friends. I made 10% as a affiliate and it didn’t cost them a dime.
Question, why someone like me will buy from someone like you and not from big names like Go Daddy? What will make consumers buy from a reseller?
MichaelR makes a valid point. Domains can be had pretty cheaply from even the giant registrars. Why should I deal with a small scale reseller when I can just go to Namecheap or Godaddy or wherever. I really don’t see the incentive.
Nice post. I wish I read it last month when I considered becoming a reseller too. I researched the idea for 3 days and then decided not to go with it because the only way to succeed in this business is to invest heavily in advertising.
MichealR I currently have all my domains transferred to a small registrar. They are usually better at providing technical support and I like the interface of their tools. One of the web hosting companies I have an account with is a small company too. Yet they were among the first to provide .NET 3.5 and they have developed their own web hosting application that I found to be much more intuitive than Plesk or cPanel.
Usually the ones that get in first are the people who make the most money. So if you heard about it on some blog or a banner ad so hasn’t everyone else in the world. The people who are a year or so ahead of everyone with the next great thing are the ones who profit.
In France resell domain is a poor activity
An affiliate for the larger companies such as GoDaddy has access to coupons and coupon codes that they share with you. It doesn’t cost you any more money but they get a commission for referring you.