Buying an expiring domain name can be a good strategy to earn money online. There are many reasons why you would want to buy an expired domain name. You might need it for your own business, or you might even want to buy it and put it up for sale.
One thing to keep in mind is that domain names do not expire on the expiry date itself. There is a 40 day grace period where the domain can be re-registered by the previous owner. During this time, all services are usually shut off. Domain names in this grace period are a sign that the previous owner may not be too keen on renewing his or her ownership.
Once these 40 days are over, the domain name goes into a redemption period. During this, all internet registration data –such as Whois information – will be removed. The owner can still pay an additional fee to reactivate the domain.
Finally, once this phase is over and the domain owner decides not to renew the domain, it goes into the deletion period. At the end of this period, the domain is released into the open market for purchase. This entire process lasts for 75 days after the initial expiration date.
You can then use services such as SnapNames, Enom and Pool.com to buy your domain.
These services will, for a fee, keep your chosen name on a watch list, and attempt to buy it once it’s released onto the open market by the domain registrar. Keep in mind that if other people also attempt to buy the same domain as you, the domain will go up for auction, and the highest bidder will win the bidding game.
Snapnames will charge you USD 60 for each domain name you wish to buy. However, you do not have to pay if you cannot get the domain. Also, if there are other interested buyers, the domain will be put up for auction.
You can pay USD 60 for the domain you want and if successful, Pool.com will ask you to place a fresh bid for the domain. If yours is one of the two highest bids, you will be then asked to bid against the other high bidder.
Enom charged you USD 30 to become a preferred bidder and the higher you pay, the better your chances are of buying the domain of your choice. Emom will also ask you for a confirmation fax stating that you wish to bid on a domain.
Of course, if you don’t wish to pay for these services, you can just go to a domain registrar such as GoDaddy and try to buy the domain before someone else snaps it up! However, with the proliferation of automated and specialised services such as Pool and Emom, it might be very difficult to succeed in this.