Domain Name Resellers Explained

When an industry grows, various avenues of business emerge. With the growth of the world wide web and ever increasing number of websites, domain names have become an in-demand commodity. As a result, the domain name registration industry has created many business avenues for entrepreneurs. Becoming a domain name reseller is one such opportunity for individuals and organizations for making a profit.

Who is a domain registration reseller?

A reseller buys products or services for selling them to other buyers for a profit. However, domain name resellers should not be confused with speculators who register domain names, develop and host websites with the intention of selling them at a profit.

Domain name resellers — also called domain registration resellers — are agents or representatives of domain registrars. They buy domain names from domain registrars on behalf of their clients who want a website but find it difficult to get a desirable domain name of their choice. Such clients often approach web design companies or domain registration resellers who search for various alternative domain names and acquire a domain name of choice for their client. Domain registration resellers often get a commission from the domain registrar. Sometimes, domain registration resellers make a margin on the cost of domain registration while reselling the domain to their client.

Emergence of the domain name reselling business

Becoming a domain registrar calls for a heavy investment in infrastructure and recovering the start-up cost can take a long time. In a competitive and crowded marketplace, starting a new domain registration business can also be a risky proposition because of the low margins and need for large volumes to make the business sustainable. Becoming a domain name reseller on the other hand, calls for much lesser investment and it’s relatively easy to start a domain name reselling business. This is the reason why domain name reselling has emerged as a popular business extension or diversification for many web designers, web hosting companies, etc.

Who can be a domain name reseller?

Any individual or company can become a domain name reseller. Becoming a domain name reseller is a relatively low cost way of entering the domain name market. Most web hosting companies today are either domain registrars or domain name resellers. Many web design firms, SEO, search marketing agencies, and even freelancers are now becoming domain name resellers.

Becoming a domain name reseller?

To become a domain name reseller, you can approach ICANN, the international company that regulates the domain name industry. ICANN has guidelines for accredited agencies and require you to have specific level of assets. After you become an accredited provider, you get a lower cost on domain name registrations. Alternately, you can tie up with an ICANN accredited domain registrar like Ballistic Domains, who offer domain name reseller packages. You will need to register for a domain reseller account with a web hosting company so that you can host the domain names you resell.

A word of caution — every business opportunity can seem like a money spinner from the outside. If you think about it, there really is no such thing as easy money. Like every serious business, domain name reselling business calls for sound business practice, marketing and hard work. Registering and reselling domain names calls for investment in buying domain names. The market is overflowing and domain name resellers are more domain name resellers are entering the market every day. Becoming a domain name reseller is not a business for anyone and everyone. Although it is unpretentious and straightforward, every domain name reseller does not make profits. You need to have the ability to market your services and attract a large number of clients for the business to be profitable. If the business interests you and you want to test the waters, sign up for a reseller account with BallisticDomains.