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  1. #1

    Is There Any Money/Benefit of Being a Domain Reseller?

    Is there any real benefit to reselling domains? It seems like GoDaddy has enough coupons and ads that make them untouchable. Even for you own personal use, GoDaddy has the bulk domain discount and the discount domain club which makes them just as cheap as any reseller pricing.

  2. #2
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    A proper domain reseller platform (not GoDaddy..) is a good option. I'd even be willing to bet that the majority of businesses that advertise on WHT are domain resellers themselves. Otherwise you would need to pay thousands to become ICANN accredited and jump through many hoops to be able to directly sell your own domain names. Its a no-brainer to start off with a reseller. It's only as profitable as you set your margins.
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  3. #3
    As a domain reseller, yes it is worth it.

    Im with reseller club and there is a 3 tier network. The more you deposit the more profit you make.

    Im on the lowest tier and i make 15% profit on domains.

    I focus more on local B2B then personal websites.

    If i were to chnage my business model, i would defiantly go down this route

  4. #4
    Quote Originally Posted by Eased View Post
    A proper domain reseller platform (not GoDaddy..) is a good option. I'd even be willing to bet that the majority of businesses that advertise on WHT are domain resellers themselves. Otherwise you would need to pay thousands to become ICANN accredited and jump through many hoops to be able to directly sell your own domain names. Its a no-brainer to start off with a reseller. It's only as profitable as you set your margins.
    But is a proper reseller even a good idea to begin with? You can set your margins high enough, but then you have to convince people to use you over the 99 cent GoDaddy coupons. You can try to add more value and win on something other than price, but that is really hard with domain names. You can't over a larger selection, faster service, or more convenient shipping methods. Even with support, the domains don't really do anything. It would mainly be support for account related issues, like billing.

    Why go through the trouble of wasting resources on this when it looks like the odds of failing is close to 100%. Am I missing something?

  5. #5
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    Quote Originally Posted by sjaguar13 View Post
    Why go through the trouble of wasting resources on this when it looks like the odds of failing is close to 100%. Am I missing something?
    Exactly why reselling is a good option. It really depends on your target market and the other services you offer. For me it's more of a value-add/upsell service that some customers will take advantage of along side other services (ie. webhosting).

    Another reason a reseller platform is good is because most of the time it can hook directly into your billing platform for automation.
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  6. #6
    Quote Originally Posted by sjaguar13 View Post
    You can't over a larger selection, faster service, or more convenient shipping methods. Even with support, the domains don't really do anything. It would mainly be support for account related issues, like billing.
    Lol, did you really put Godaddy and support in the same sentence?

    Starting off reselling domains is a great idea. As a long you can market it, start by selling domains and hosting to your friends, they refer ect.

    It is highly profitable. Just dont expect to be rich over night.

  7. #7
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    Quote Originally Posted by sjaguar13 View Post
    But is a proper reseller even a good idea to begin with? You can set your margins high enough, but then you have to convince people to use you over the 99 cent GoDaddy coupons. You can try to add more value and win on something other than price, but that is really hard with domain names. You can't over a larger selection, faster service, or more convenient shipping methods. Even with support, the domains don't really do anything. It would mainly be support for account related issues, like billing.

    Why go through the trouble of wasting resources on this when it looks like the odds of failing is close to 100%. Am I missing something?
    It's really simple...you don't market to people that know about 99 cent GoDaddy coupons. You market to local business and little old ladies that want to show off the sweater they knit last night.

  8. #8
    I think you are talking about "unregistered" domain name selling. Godaddy charges you $100 a year to become their re-seller. I suggest you to try ResellerClub to start with. Your margin is profit so make sure you get profit even if USD rate changes in your country (If you are a non-US citizen).
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  9. #9
    Quote Originally Posted by whfm View Post
    Lol, did you really put Godaddy and support in the same sentence?

    Starting off reselling domains is a great idea. As a long you can market it, start by selling domains and hosting to your friends, they refer ect.

    It is highly profitable. Just dont expect to be rich over night.
    Everyone claims GoDaddy has terrible support, but I never had any issues with them. With their VIP account executive program, you get someone who you can call even on Saturday.

    Quote Originally Posted by Daniel B View Post
    It's really simple...you don't market to people that know about 99 cent GoDaddy coupons. You market to local business and little old ladies that want to show off the sweater they knit last night.
    I guess the point I am trying to make is if you can market it, why wouldn't you pick anything else to market instead? You would have to explain to little old ladies what the internet is, and then convince them they need a site.

    GoDaddy has a larger marketing budget than any reseller will. Plus, the sales funnel seems out of order at this point. Most people will want hosting AFTER they have a domain. It seems like wasted effort at this point to try to get them to get a domain.

    Now, if they bought a domain from GoDaddy, realized they needed hosting, and then found you, it seems more logical to offer the upgrades and products that would come next, everything from web design, custom coding, script installation, marketing/seo, ppc management, even promotional items that include the website address.

  10. #10
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    Most domain resellers are hosting providers who either include a free domain in their plan or simply offer registration to clients to give the convenience of having everything under one roof.

    Don't become a reseller to compete with big registrars. You won't sell as much as, say, Go Daddy, but with most reseller programs you won't have to.

  11. #11
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    Quote Originally Posted by sjaguar13 View Post
    I guess the point I am trying to make is if you can market it, why wouldn't you pick anything else to market instead? You would have to explain to little old ladies what the internet is, and then convince them they need a site.

    GoDaddy has a larger marketing budget than any reseller will. Plus, the sales funnel seems out of order at this point. Most people will want hosting AFTER they have a domain. It seems like wasted effort at this point to try to get them to get a domain.

    Now, if they bought a domain from GoDaddy, realized they needed hosting, and then found you, it seems more logical to offer the upgrades and products that would come next, everything from web design, custom coding, script installation, marketing/seo, ppc management, even promotional items that include the website address.
    Your point about other services (design, coding, etc) doesn't really have anything to do with the reason you started this thread though .

    The value of a domain reseller account is simply to add an extra service for current and future clients. There are plenty of people looking for hosting that don't yet have a domain name, and plenty of those people are more interested in a quality business relationship than price. This is where the benefit of a domain reseller comes from. Simply to add value to the brand.

    Using myself as an example, I offer domains as a secondary feature...I advertise hosting and web design, and if a client says "hey, what about a domain", then I can possibly sell them one because we've already built a relationship during the other previous contact.

    I don't expect someone to come to me just for a domain, but an extra tiny bit of profit for me and a single place to manage their website for them is a good value for both of us.

    So it just depends on what you want to use it for. Want to get into the business of just selling domains? Then yeah, reselling probably isn't the best way to do it because people that are only looking for a domain are going to probably be searching around and looking at prices. However, if it's not your first focus, then you are going to have more clients that are seeing it as an extra benefit and are therefore less inclined to focus on the price.

  12. #12
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    Back when I was a "General market" host in the early 2000's I offered domains secondary to the hosting, targeting resellers in particular. I sold the hosting company years ago, but still get residual income from the domain resellers almost 10 years later.

    Selling domains can be profitable, especially if you can get a low price and with all the new tld's opening up there is opportunity there. You can't compete with godaddy, don't try. Target specific markets and offer value with good service, don't focus on price alone.

  13. #13
    Resellerclub have a lot of discounts and promos. You can sell at low prices even you are a reseller.
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  14. #14
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    Quote Originally Posted by sjaguar13 View Post
    Is there any real benefit to reselling domains?
    As others have stated there is some money that can be made but you have to try to either target and market to a specific audience or use the reseller program as an additional service that is compatible in some way with the services that you already offer. Many web designers who build sites have used a reseller program as a way to add value and legitimacy to their already existing portfolio of services that they offer. Also many hosting and server companys are domain resellers because it goes hand in hand with their main featured product.
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  15. #15
    Quote Originally Posted by Daniel B View Post
    Your point about other services (design, coding, etc) doesn't really have anything to do with the reason you started this thread though .
    It's the exact reason I started the thread. All the other services are far easier to sell and market, so why would someone pick domains over them?

    Quote Originally Posted by Matt View Post
    I sold the hosting company years ago, but still get residual income from the domain resellers almost 10 years later.
    That's actually one benefit I didn't think about. Renewals would be easy money requiring no extra work.

  16. #16
    Yes, domain flipping can be highly profitable. There are people who are making serious money flipping domains

  17. #17
    Can be profitable if your customer is a so called "Domainer". But if its just the regular customer registering just one domain and nothing else, you won't be making a lot of profits.

    But like you said, they will mostly likely purchase hosting from you with the domain.

  18. #18
    As with any service or product there's always low-cost providers and high-cost providers, who are selling the same thing.

    Domains are no different.

    There is, however, a vast difference in the market who purchases the domains.

    A knowledgeable tech person who understands the industry and is comfortable with computers and "internet stuff" is more likely to go with godaddy and will spend the minimum possible.

    A non-technical person who already has a $50/month web hosting account and just wants to have the easiest possible user experience and keep everything at the same place is usually happy to spend $25/year purchasing a .com domain from their hosting service provider.

    They're purchasing the same thing, but the perceived value for what and how they are purchasing is much different.
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  19. #19
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    Yes, our profit margin is a good 35% of the actual price we sell the Domain at, add it up 100's 1000's and well, it could actually pay the wage for one person if you have enough.

  20. #20
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    More often than not, it's more about upselling. You *cough daddy* present your customers a thousand things before they are able to purchase a bare domain from you and one out of every few, buys hosting, SEO packages and what not. That is the money in domains - else Godaddy wouldn't have sustained to issue 99 cents coupon when the original Verisign price itself is close to $8

  21. #21
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    Benefit - if you're providing services which rely on domains, then absolutely

    Profit - probably not
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