Making Money Selling Domain Names
First, you will need to find a search engine keyword that is highly searched yet not used much by other websites. You can do this by using a keyword analyzer. The best keyword analyzers are those that you pay for, such as Word Tracker or Keyword Analyzer. The reason why these are preferable over free ones is because they let you know how much competition you are facing with a potential keyword. Free ones only tell you how much the keyword has been searched. If money is a problem, try to get a paid keyword analyzer that is offering a free sample, such as Word Tracker. You can upgrade to the paid version once you return profit from the sale of your domain name.
With your keyword chosen, you will need to get a domain name and web hosting. Why do you need web hosting if you're going to sell just the domain name? It's because you're going to need a website to drive traffic to that domain name. Without a website visitors won't want to return to whatever domain name you selected. This lessens the main element that gives a domain name profitability: traffic.
Anyway, try to get a package that will include both web hosting and a domain name at the same time, since you won't have to worry about transferring anything later. When you choose your domain name, make sure you include your selected keyword in its phrasing. If you find that your selected keyword is taken as a domain name, try making alterations like saying "a1", "123" or "101." For example, say the keyword "Careers" is taken as a domain name. You could say "A1 Careers," "Careers 123" or "Careers 101." Alternatively, you could try searching for a related keyword that isn't taken as a domain name. Either way, keep trying until you get a memorable yet keyword-rich domain name that still has a .com extension.
Now, you will need to create a website for your domain name. It doesn't have to be big... even a one-pager could do the trick, if you don't mind a website so simple. Write an article related to the keyword you chose and create a simple site using Microsoft Word, (make sure you save the document as an .HTML file). Sign up for Adsense and/or an affiliate program, so you can offer additional resources for your visitors. You will also earn a commission if a sale is made or a clickthrough generated, (depending on the program you joined).
Once your website is uploaded, you need to focus on traffic-building. You can get an initial boost by buying traffic, though make sure the company you buy your traffic from uses expired domain names rather than bots or even incentive traffic, (such as paid emails). But even after this you will need to try to build up inbound links. These are websites that link to you. Post your site on any free site, such as directories, message boards or online classified ads. Also, make sure you submit articles to free article directories. Additionally, try to initiate link exchanges. You can do this by emailing the webmaster or finding link exchange networks such as Link Market.
Keep building up your links until you get a steady stream of traffic. If you get enough traffic, you will get an Alexa rating. If the rating is pleasing, find a domain name appraiser and see how much your domain name can go for. This will give you some idea of how much you can realistically get, but don't get discouraged if the number seems low. Why? It's because some people will care more about the traffic your domain name is receiving over the supposed SEO elements of it.
Either way, when you feel you are ready put your domain name up for auction. You may even want to include your original website, though this is optional. When the domain name sells, you will need to transfer it over to the new webmaster's account... your web hosting company can help you with this.
With your profit you may want to consider doing the venture again with an expired domain name. This will get you a traffic boost without having to go through the actual process of traffic-building, (if you decide you don't want to do that).
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