How do you create and sell domain names?

[Jake]

You have to buy, really license a domain name for around $12 a year, all the best .com names, some that have resold for millions of dollars are already spoken for, there are a variety of domain name prospecting tools on the internet, some are paid services. Some are for finding the best available names some are for buying existing names up for resale. A professional domain speculator, domainer may own thousands of names that they site on until someone with a burning need for one is willing to pay top dollar.

There are domain name search tools that automatically try combinations of words, the Godaddt bulk search link under Find Your Domain tab allows you to check availability of a list of names at a time.

The Godaddy auction is where previously owned domains of all prices are available, an aged domain is generally better in search ranking terms, as long as it hasn't been blacklisted for evil doing. The web business auction site Flippa.com I believe also deals in domain names.

There are sites with tools that help you come up with fictitious names, including: wordlab.com, naming.net, wordoid.com, lingzini.com, namestation.com, some of these tools look up the domain name availability as you go.
Any name not already used in a .com web site name is probably not trademarked.