An entrepreneur accidentally bought an unused domain and later sold it on Dan.com’s marketplace. This experience gave him the idea to start a domain name auction business.
By leveraging Truehost’s affordable bulk domain registration and seamless transfer capabilities, he can acquire inventory and efficiently run his auctions.
The Challenge: Sourcing Inventory for Domain Auctions
The entrepreneur sought to buy unused domains and resell them through auctions on sites like Dan.com. However, domain registration costs could erode margins. He needed a provider that could support bulk registrations at affordable rates.
Specific requirements included:
- Low per-unit cost for bulk purchases
- Smooth domain ownership transfers after auctions
- Ability to quickly scale up purchases as business grew
High domain registration fees or friction during transfers would make the model unprofitable.
The Solution: Truehost’s Bulk Domain Registration
To secure affordable inventory, the entrepreneur used Truehost’s bulk domain registration which offers:
- Discounted bulk pricing – Cost-effective rates, even for large volumes
- Streamlined transfers – New owners get access right after auction sale
- Scalability – Easily grow domain purchases as business expands
The bulk discount rates enabled profitable acquisition of inventory.
Quick and smooth transfers let the new owner utilize the domain immediately after purchase.
Scalable platform supported easy growth of domain purchases.
The Results: Lucrative Domain Auction Business
Leveraging Truehost’s bulk domain registration and transfer capabilities provided the core infrastructure to efficiently run a domain auction business:
- Low-cost inventory – Bulk domain rates preserve auction margins
- Faster liquidation – Transfers increase auction sales velocity
- Profitability at scale – Business can grow without platform limits
“The low-priced domains have a high return on auction making it more profitable.”
By providing affordable and seamless access to inventory, Truehost unlocked a lucrative domain auction model. Inventory costs stay low while aftermarket sale velocity remains high.
For domain arbitrage businesses, sourcing and transfers are crucial. Truehost’s bulk registration enabled this entrepreneur to build a profitable auction marketplace.