Not every domain name purchased is put to use by the person or company that buys it. Sometimes they are purchased strictly for the purpose of resale; other times, their owner will sell them after finding they don't have a use for them, or when a third party expresses interest in buying it.
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The process of selling
If you decide to sell a domain name, you must authorize the transfer of domain ownership registrar before the transaction can be completed. It's not like purchasing something over the counter, where ownership changes hands immediately; for the protection of both the seller and buyer, some sort of authorization or notice is usually required, and is typically given to the registrar which will be relinquishing control of the domain. Also keep in mind that a processing fee may be involved; you may want to consider incorporating this fee in to your selling price.
There are typically two ways to sell a domain name:
1. PRIVATE TRANSACTION: Like the name implies, a private transaction is strictly between the buyer and seller, with no third party involved. This option requires a level of trust between the two parties, as someone is typically left waiting while the transfer authorization is completed and the money to the seller is sent.
In order to conduct a private transaction, you will require the necessary paperwork, which can often require a notarized signature. Each registrar has different policies, and it is therefore crucial that you contact your registrar to find out what exactly is required of you in order to sell a domain name.
2. USING AN ESCROW SERVICE: An escrow service is a third party that will essentially hold on to the buyer's payment while the transaction is completed, thereby protecting both the buyer and seller. The downside to using an escrow service is that it adds another step to the selling process, and is another expense; however, escrow services will often do much of the administrative legwork for you, and will sometimes also accept alternative payment methods that may not be available in a private transaction, like credit cards. You can find a number of escrow services here.
Regardless of the path you decide to choose when selling your domain name, be careful. When selling a domain name, you will rarely meet your buyer face to face; as a result, it's important to err on the side of caution.
