When it comes down to domain acquisitions or sales, I observe a basic law of trading: money must change hands.<\/p>\n
In other words, I sell domains for money, and acquire domains for money; no exchanges or trades of any sort form any part of my business model.<\/p>\n
On several occasions I was contacted about trading, exchanging or “swapping” domains.<\/p>\n
For my personal modus operandi, there is a high risk factor involved in such exchanges.<\/p>\n
First and foremost, pinpointing the exact value of the domains involved is quite difficult. As assets, domains fluctuate in value, so all trades must complete either quickly, or be “coinage” domains, such as three letter .coms.<\/p>\n
Logistically, every domain sale involves the subtraction of the acquisition cost and renewals from the final price, before determining the taxes; for domains held over a year, that falls in the capital gains bracket, otherwise it’s regular income. Trading or swapping domains complicates this process.<\/p>\n
By exchanging domains, both parties must enjoy mutual trust. There are quite a few cases that one of the domains involved was tied to litigation, or a UDRP, or had a not so kosher past.<\/p>\n
Such domain trades that are done casually, without an underlying agreement or contract, can become problematic in the long run. Still, as long as the parties involved are trusting each other 100%, there is room for domain swapping, if it’s done right.<\/p>\n","protected":false},"excerpt":{"rendered":"
When it comes down to domain acquisitions or sales, I observe a basic law of trading: money must change hands. In other words, I sell domains for money, and acquire domains for money; no exchanges or trades of any sort form any part of my business model. On several occasions I was contacted about trading, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[193,1104,1102,1103],"class_list":["post-4313","post","type-post","status-publish","format-standard","hentry","category-domains","tag-acronet","tag-domain-exchange","tag-domain-swapping","tag-trade-domains","entry"],"yoast_head":"\n