Do you have an account with Sedo already? If so, the first step is to sign up. It can take a bit of time to get your account approved as they verify who you are.
Then, all you can do is list it on Sedo. To send it to an auction, you need a minimum $60 bid.
The transfer of the domain normally goes through Sedo. Seller pays Sedo --> once Sedo has the money, you push the domain to Sedo's account --> once Sedo receives the domain, they pay you.
You can sign up to be paid pretty much any way you like - paypal, cheque, wire, etc. I think there are fees and minimums for some payment methods. I use paypal and it works smoothly.