Domain selling can be a profitable business. Some people even manage to make a living off of it. However, you have to be quick and know what will be most profitable in the long run. Here are some tips to get started.
Pick the right service
godaddy.com seems to be the most popular and widely used service, but it is not the best. The website has a great setup and is easy to get started. However, some of the more advanced services you need to make money they will charge a monthly fee for. You must join a monthly paid subscription service to park your domain (parking will be explained later). The pro to counteract this con is that they offer a 24/7 help service, have lots of domains to buy and sell and will do a domain evaluation for little money.
The best site for starters to use is sedo.com. It has a similar service to godaddy.com, with many domain options. Their service is still quite good, and parking your domain through them is free with up to 80% of ad revenue going to you.
How to make short and long term money
The best way to make money as soon as you choose a domain to buy is to park that domain. Parking means having the website you bought filled with ads so that when someone views the page, you get payed. An example to these pages can be most likely found when a popular domain name is typed in wrong (like gogle.com instead of google.com). Most of these pages have search bars on them. When a search is done through that bar, you get payed as well.
To get money in the long term, you need to be patient and use some foresight when buying a domain name. They more in demand the domain name, the higher someone is willing to pay for it. Start off with searching for domain names that contain popular companies or products in them. Businesses often do searches for domains with their names in them and offer to buy out the owner for the domain (especially if the domain is somehow insulting their company). Another to sell high is to find that will soon to be popular. Search twitter and news networks for things that will soon be big and buy the domains for those services so when the product hits big, the demand for those domains will go way up (think about the old spice guy commercials and the popularity that brought up or future video game release titles). Finally, just try finding cool domain names that you like and others might as well. Titles with alliteration in the name tend to sell for big bucks (likesandyshores or giantgiggles etc.)
While you may not get rich selling domains, it is a good way to earn some cash, providing you have the patience and time to wait for the best price. Good luck!