The domain reselling business is competitive, and even experienced resellers can run into pitfalls that hurt their profitability and reputation. Here are eight common mistakes and how to avoid them.
Ignoring niche markets
Many resellers focus only on popular TLDs like .com, .net, and .org. While these are important, niche and specialty TLDs can offer better margins and lower competition. Tech startups look for .ai and .io, while small business owners may be looking for .agency or .store domains. Local businesses benefit from city-based domains like .berlin and .nyc. Offering a wide selection of TLDs gives your customers more choice and increases your revenue potential.
Neglecting marketing and content
Did you know that small businesses with a blog get 126% more lead growth than small businesses without?
Resellers who don’t invest in marketing struggle to stand out. An outdated website, inactive blog, or ignored social media profile makes it harder for potential customers to find and trust you. A strong online presence helps drive organic traffic and conversions.
Try a mix of content formats – blogs, landing pages, e-books, videos, and even podcasts. In addition to organic content, targeted ads can help attract the right audience.
Underestimating the power of bundles
Domains are just the starting point. Customers often look for a package deal that includes additional services like web hosting, business email, SSL certificates, privacy protection, and website builders. Not offering these essential add-ons can be a missed opportunity for additional revenue. To stand out further from your competitors, consider offering products that only some people are selling, such as DMARC solutions or VPNs.
Not keeping up with industry changes
The domain industry evolves constantly – new TLDs launch, ICANN policies shift, and cybersecurity threats emerge. Falling behind on these developments can put both you and your customers at a disadvantage. Stay informed by following industry news from trusted sources and attending webinars and industry events. We regularly cover the latest domain industry updates on our blog.
Overlooking customer support
Customer support plays a major role in customer retention. Poor service leads to high churn rates and damages your reputation. The numbers don’t lie – 91% of customers who had a bad experience with a company will not do business with them again, and 95% of these people would tell others about it, damaging your reputation.
Make it easy for customers to reach you through multiple channels. Besides email and phone support, live chat and WhatsApp are popular options, especially among younger customers. A smooth onboarding experience and an intuitive control panel also contribute to overall customer satisfaction.
Failing to offer competitive pricing
Resellers who don’t optimize their pricing risk losing customers to competitors. If your domain prices are too high, potential buyers will look elsewhere. If they’re too low without a clear strategy, you could erode your margins.
Instead of competing purely on price, look at long-term value. Long-term affordable pricing (as opposed to large discounts on the first year of registration followed by high renewal prices) and discounts on bundled services can make your offering more attractive. Openprovider Members, for example, get domains at cost price, making it easier to stay competitive while maintaining healthy margins.
Not automating domain management
Manually managing domain registrations, renewals, and transfers is time-consuming and error-prone. Forgetting to renew a customer’s domain can cause major issues, and slow processing times can frustrate buyers.
Using automation tools and APIs streamlines operations and reduces the risk of human error. With Openprovider’s API and integration modules, resellers can integrate domain registration directly into their platform, saving time and improving the customer experience.
Failing to build long-term customer relationships
Many resellers focus only on acquiring new customers but don’t put enough effort into keeping them. Long-term customer retention is what sustains a profitable reseller business.
Build relationships by offering great customer support and providing relevant recommendations based on a customer’s needs. A satisfied customer is more likely to renew domains and web hosting bundles with you, purchase additional services, and refer others to your business.
Build a sustainable reseller business
Avoiding these common mistakes can make a big difference in your success. Focusing on niche markets, bundling value-added services, investing in marketing, automating your business, staying updated with industry trends, and building long-term relations will help you grow a strong and profitable reseller business.
Want to improve your margins and gain a competitive edge? Openprovider Memberships offer access to domain registrations at cost price, plus discounts on SSL, Premium DNS, Plesk, business email, and other services.
A Basic S Membership costs just $49.99 per year and delivers an average of 6X ROI, saving you around $240.48 annually.
Use our savings calculator to see how much you can save today!
