Even though everyone is looking to adopt IPv6 protocols, the demand for IPv4 addresses is still quite high in today’s digital world. This has led to substantial growth in the IPv4 buying and selling market, as there are only a limited number of IPv4 addresses available. It means understanding the intricacies of buying and selling IPv4 addresses is imperative to ensure that you can gain maximum profits while also making sure that you comply with all regulations.
In this article, we will discuss everything you need to know on how to sell IPv4 address, including what makes these still valuable and the key things to note while entering the IPv4 market.
What Makes IPv4 Addresses Still Valuable?
The IPv4 address exhaustion issue has been doing the rounds for quite some time. The Internet Assigned Numbers Authority (IANA) completed the official allocation of IPv4 addresses by 2011, so the move to IPv6 was inevitable. However, IPv4 is still used across the globe for a lot of reasons. Some of those include the below.
Legacy Systems
A lot of Internet Service Providers (ISPs) still use legacy systems that employ IPv4 addresses. This is because migrating to IPv6 needs significant investment as well as infrastructure changes. So IPv4 addresses are essential for such ISPs and businesses to maintain operations.
Compatibility Problems
There are a lot of applications and networks that are built on IPv4. This makes it difficult for organizations to transition to IPv6 completely. In fact, with many such software relying on the old networking protocol, the demand for IPv4 has even increased.
Limited Availability
There is a very limited number of IPv4 addresses left to supply for the demand. This has in turn made IPv4 more valuable, especially for those businesses that are looking to expand their existing networks. Those looking to sell IPv4 address can cater to the needs of such organizations.
How Does the IPv4 Address Market Work?
Unlike any other commodity, buying and selling IPv4 addresses requires compliance with many legal frameworks. These include following the standards established by Regional Internet Registries (RIRs), such as APNIC (Asia-Pacific Network Information Centre), RIPE NCC (Réseaux IP Européens Network Coordination Centre), and ARIN (American Registry for Internet Numbers).
In general, IPv4 addresses are sold in blocks, with the standard block size consisting of 256 IP addresses. However, businesses can also opt to buy or sell IPv4 addresses in smaller or bigger blocks as per their requirements. Below is an outline of how the IPv4 selling process works.
Validating Ownership of IPv4 Addresses
It is necessary to validate the ownership of the IP addresses before entering the market to sell IPv4 addresses. This includes checking the registered name and address in the RIR. If the IP addresses are registered under another organization’s name, then it can lead to legal complications when you try to sell them. Likewise, the IP addresses should not have been blacklisted for any compliance issues or flagged for malicious uses.
Determining the Price of IPv4 Addresses
The basic pricing for IPv4 addresses sold in blocks can range from $20 to $30 per address. However, it can vary based on the location, size, and current demand. Sometimes, the estimated value can even go up to $100 per IP address if the demand is too high. This is why it is important to do proper research and understand its value based on the current market conditions.
Finding a Reliable IPv4 Broker
When you set out to sell IPv4 address, having a reliable broker on your side can help to make the process much simpler. IPv4 address brokers have all the expertise and knowledge required to facilitate the transactions, and they will also make sure that the trade is compliant with all the regional laws. Your IPv4 address broker can also negotiate prices to help you get the best deal in the market.
Negotiating the IPv4 Address Sale Terms
Once you find a potential buyer, you need to agree to the pricing and payment terms. This is where your IPv4 broker can help again to handle the transaction transparently and ethically. You can use an escrow service for the payment and initiate the transfer process for the sale. Note that the transaction should be recorded adequately in the RIR to ensure the ownership transfer of the IPv4 addresses.
Transferring IPv4 Address Ownership
The IPv4 ownership transfer process includes submitting the applicable documentation to the relevant RIR. The RIR will then assess the transfer request filed by the buyer and seller and review other details for the transaction. You will also need to submit a nominal fee for the IPv4 sale, and the entire transfer process takes around 2-4 weeks in general.
Things to Note When Selling IPv4 Addresses
The most important thing to remember while selling IPv4 addresses is to ensure regulatory compliance. IP address transactions are subject to strict local and regional regulations, and any kind of compliance issue can lead to legal consequences. There is also a risk of scams like any other commodity trade in the digital world. So make sure you get an IPv4 broker who is affiliated with the relevant RIRs and can verify the legitimacy of the buyer.
In addition, make sure that the transaction is fully documented and the payments are done through secured channels. In some cases, there could be tax implications on selling IPv4 addresses, so you might have to consult with a tax professional for that as well.
As the demand for IPv4 addresses fluctuates in the market, you also need to consider the timing of the sale. This will help you maximize your profits. So if you own unused or excess IPv4 addresses, you can use them to generate significant revenue with the right strategy.
