5 Reasons to Consider Becoming a Domain Reseller in 2024

In a world where a digital presence is crucial for brand recognition and loyalty, domain reselling is entering the scene as a profitable venture to achieve this.¹ The Web Domain Sales industry generated $9.5 billion in revenue in 2023 alone, significantly outpacing the initial projection of $8.6 billion.²

Businesses capitalize on this trend by integrating domain sales into their platforms, driving revenue, and enhancing customer experience. This upward trend is expected to continue, making domain reselling a strategic opportunity for businesses to leverage the growing demand for virtual real estate.

What is Domain Reselling?

Domain reselling simplifies domain registrations by connecting customers directly to top-level domain options from accredited registrars. As a reseller, you streamline finding, registering, and managing domain names within your platform. 

You enhance the user experience and provide easy access to valuable digital assets by serving as a bridge between customers and registrars. This all-inclusive approach improves customer satisfaction and boosts your brand's reputation.

Domain Reselling in 2024: Top Benefits to Consider

Building a digital identity through a custom domain name is relevant across all industries, making domain reselling an enriching opportunity for countless digital platforms. Discover how domain reselling can become a core element of your brand’s digital strategy by exploring its key benefits below.

1. Increased Customer Value 

Offering domain services as a reseller enhances your platform's appeal by providing customers with valuable branding tools and a means to connect with their digital audience.

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Offer a Domain Portfolio for Your Customers

Connecting your customers with domain services allows them to seek a custom domain name that complements their needs. However, they may not immediately recognize how domain names are relevant to their bottom line. 

By curating a customized domain name portfolio that targets your specific audience, you can demonstrate the value-add of domain name services. Consider these examples: 

• Creator-based platforms can showcase the brand-building power of domain names through top-level domain (TLD) offerings like .bio, .social, and .community

• B2B tech platforms can demonstrate the forward-thinking nature of their products through TLDs with relevant keywords like .solutions, .technology, and .software 

Brainstorm how your audience represents themselves online, then coordinate a domain portfolio that reflects your findings. 

2. Scalable and Affordable Administration

Testing the waters as a domain reseller doesn’t require a significant up-front investment or an overhaul of your existing platform. In fact, you can enjoy the financial benefits of the reselling model without interfering with your current financial plan. 

Here are two options to consider:

Low Initial Investment

Because domain resellers connect customers directly with products from registrars, they don’t have to shoulder up-front costs for maintaining inventory. Compared to the financial and time investment of launching original products as a revenue stream, domain reselling is an affordable way to expand your offerings.

Scalable Revenue Model 

Because you earn revenue from each domain name you sell, domain reselling becomes a fully scalable income stream with exponential growth potential. As you target new audiences and grow your customer base, you can enjoy a consistent increase in revenue from domain sales. 

Depending on your pricing strategy, you can garner anywhere from  10% to up to 50% profit on a domain name.³

• Offer lower prices to target a budget-conscious audience and earn income at scale
• Aim for a higher profit margin by positioning yourself as a premium domain provider with high-value domain name options 

3. Easy Entry Without Major Technical Lift

Domain reselling works by leveraging a domain registrar’s existing services through your platform, significantly reducing the technical burden of going to market. 

This means you can quickly join the domain sales market without taking on complex technical administration duties or majorly altering your platform’s infrastructure.

Easy to Implement

Domain service platforms enable easy domain name sales without requiring extensive technical expertise. Following a short setup, you can swiftly begin selling domains and accessing new revenue streams. Identity Digital offers two integration methods: iFrame and API.

• An iFrame is a simple, low-code integration that embeds your registrar’s services into your platform. Simply enter the iFrame code to offer your customers domain services immediately. Because of its simplicity, iFrame does have limited options for customization and setting up recurring revenue from domain renewals. 

• APIs connect your platform to registrar capabilities, enabling seamless user experiences and customizable domain sales engines, though initial and ongoing technical management is required; consider working with a technical support team for a smooth launch.

Efficient Resource Utilization

By directing your current customers to your domain offerings, you can optimize your platform’s efficiency and get more out of your existing digital resources. And, as your operations grow, you can funnel your growing traffic through your registrar’s back-end infrastructure, effortlessly capturing increased sales without increasing your own cost or labor requirements.

4. Additional Stream of Income

Reselling domains allow you to diversify your product offerings with a valuable digital asset relevant to various audiences. 

Once you begin reselling domain names, you can enjoy an automated, scalable revenue stream requiring little maintenance. 

Incremental Profit Generation

Since you earn income with each domain registration you sell, your revenue can increase consistently as your audience expands. And, because domain reselling easily complements existing business models, it becomes a reliable way to increase profits without needing a substantial upfront investment or a total restructuring. 

5. Elevate the User Experience

Domain names have an unmistakable value in today’s digital marketplace. By acting as an intermediary between your customers and this in-demand product, you improve their overall experience on your platform through multiple channels:

Streamlined Services

If your product connects with domain names in any way, offering in-house domain services streamlines your customer journey. Customers can seamlessly set up their domain names and link them to your products, eliminating the pain points associated with setting up domain names manually through a separate registrar.

Integrated Solutions

Domain reselling solutions can fully integrate with your existing platform alongside related services like website hosting, email management, and web security. Coordinating these services within your platform positions your brand as a one-stop shop for digital identity management. 

Becoming a Domain Reseller: Where to Start

Domain reselling lets you connect your customers with a core element of their digital identities, positioning you as a forward-thinking brand within a competitive digital marketplace. But this is far from the only benefit.

Becoming a domain reseller in 2024 can strengthen your connection with your audience, enhance your user experience, and unlock a revenue stream with vast growth potential without a large upfront investment or advanced technical knowledge. You don’t even need to eliminate your existing interface or business model. 

Ready to get started?

Identity Digital equips you with the tools to incorporate domain sales into your platform and a diverse portfolio of in-demand domain name options. Learn more about our Reseller Solutions today to start earning as a domain reseller. 

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Sources:

¹Ibis World. Web Domain Name Sales in the US - Market Size (2005–2029).  https://www.ibisworld.com/industry-statistics/market-size/web-domain-name-sales-united-states/

²Domain Wheel. 35+ Must-Know Domain Name Statistics (2024). https://domainwheel.com/domain-name-statistics/#gref

³Chemicloud. Become a Domain Reseller: How to Quickly Start Your Own Business. https://chemicloud.com/blog/domain-reseller/