5 common mistakes all domain resellers make

As the internet continues to expand, the business of domain reselling remains both lucrative and competitive. Domain resellers and web hosters play a crucial role in helping businesses and individuals create and maintain their online presence. However, even experienced players can stumble over common pitfalls that can affect their profitability and reputation. Here are five frequent mistakes that every domain reseller should be aware of and actively work to avoid.

Ignoring niche markets

One of the most significant oversights by domain resellers is focusing solely on popular and generic TLDs, such as .com, .net, or .org. While these are undoubtedly important, there’s a growing demand for niche and specialty TLDs that cater to specific industries or interests, such as .store, .art, or .eco. Meanwhile, extensions like .ai, .io, and .ly are currently in high demand in the tech industry, and many localized businesses are interested in geographical domain names, such as .berlin or .nyc. Due to their tailored appeal and lower competition, these specialized domains can offer higher margins. These are even expanded when you combine a large offer of TLDs with the ability for your customers to buy high-value domain names on the aftermarket.

Neglecting marketing and content

Many domain resellers fail to invest adequately in their own marketing and branding. They don’t update their website frequently and neglect their blog sections, knowledge bases, and social media accounts. It’s harder to stand out in a crowded market without a strong brand presence and strategic marketing. It’s important to invest in content. Experiment with tried-and-true formats like blogs and landing pages, to newer formats like e-books, videos, and podcasts. It’s a proven fact that content will help boost your business and make it easier for people to find you organically – did you know that small businesses with blogs get 126% more lead growth than small businesses without?

Besides organic content, consider the benefits of targeted advertising to reach specific demographics that are more likely to convert, such as tech startups for .io domains or local businesses for geographical TLDs.

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

Although from the outside it may seem like a static industry, the domain world is subject to frequent changes – be it new TLD releases, changing ICANN policies, or evolving cybersecurity threats. Resellers who do not stay updated may find themselves and their customers at a disadvantage. Stay up to date with the latest news by following relevant industry accounts on LinkedIn and attending webinars and events. We regularly share industry overview articles on our blog for you to keep up, such as this one about five domain industry trends for 2024.

Overlooking customer support

Excellent customer service is critical in retaining customers and maintaining a good brand image and reputation. Poor customer support can lead to high churn rates and damage your reputation, which is especially detrimental in an industry that relies heavily on trust and reliability. 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. 

Prevent customer churn by providing great customer service and making sure that your customers can easily reach you through a variety of channels. Besides the classic options of email and phone support, live chat and WhatsApp are popular new support channels that younger customers, in particular, like to use. 

Do also remember that customer support is just one part (although an important one) of the overall customer experience. Other factors, such as an intuitive, easy-to-navigate website and control panel, as well as a smooth onboarding journey, are crucial here as well.

Conclusion

Avoiding a few common mistakes can significantly improve your success as a domain reseller. By recognizing the importance of niche markets, bundling value-added services, investing in marketing, providing excellent customer support, and staying updated with industry developments, you can build a sustainable business that stands out from the competition. Remember, in the domain reselling business, the key to success lies in being proactive, customer-centric, and well-informed.

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Openprovider Memberships offer many extra benefits that can help your domain reseller business grow. These include discounts on products like SSL certificates, Premium DNS, and EasyDMARC, the opportunity to resell our Member-exclusive business email solution, and access to exclusive webinars, marketing materials, and sales toolkits. Web hosters will also be glad to hear that we lowest prices on the market for Plesk, and our API is a great way for larger domain resellers to integrate our domain and SSL registration modules with their own websites and systems.

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