Domain flipping is becoming more prevalent. This well-liked technique of buying and selling is frequently an excellent method of generating additional online income.
The profitability of flipping domains is without a doubt. In 1999, the domain name Business.com was valued at $7.5 million and it was sold for $345 in 2007 [1]. Although these numbers were astronomical, anyone can begin buying and selling domains with a limited budget.
Today, this guide will assist you in comprehending the fundamentals of domain flipping and the necessary steps you should follow to begin flipping websites.
What does it mean to flip a domain
Domain flipping involves purchasing a website domain and then selling it later at a higher price, aiming to generate a profit and earn additional income. By implementing an effective approach, domain flipping has the potential to transition from being a part-time endeavor to a full-time profession.
Do you want to know the process of purchasing, developing, and reselling content-based websites? Observe how investor Mushfiq Sarker successfully sold a WordPress site for $175,000. Similarly, renowned domain broker Ali Zandi earned a profit of $58,000 by selling eight domains only 60 days after acquiring them.
How much are domains worth
The dollar value of domains can fall anywhere within a massive range. Some domains are free, some are worth a couple hundred dollars, and some are worth thousands or millions. The most valuable domain name of all time — Cars.com — was actually sold for
$872 million, which soars over $800 million above the value of the next most expensive domains.
Although every domain flipper aims to secure a multi-million-dollar sale, it can be quite challenging to locate such high-value domains, akin to searching for a needle in a haystack. Even domains that can fetch a price in the six-figure range can prove elusive, particularly when seeking a favorable buying price.
Estimating the average earnings from flipping domains is difficult, making it crucial to understand that it is not a fast track to becoming wealthy.
Once you have purchased and listed your domains, a domain flipping business can essentially operate on its own. However, it may require some prior experience before generating enough income for you to leave your current job.
Ways to make money by domain flipping
Flipping domains to make money is not based on luck but rather on investing time and commitment to learn which site domains are profitable and which ones should be avoided.
1. Choose a legit domain marketplace
If you are planning to purchase technology, the recommended option is to visit Amazon. However, if your intention is to sell your iPhone, it might be worth considering listing it on eBay. Similarly, when it comes to flipping a domain, the most effective approach would be to explore domain name marketplaces or listing sites. Presented below is a compilation of the leading domain marketplaces in the year 2023:
You can browse through numerous domains based on business category, price, and age on these platforms. They provide a straightforward registration process, allowing you to promptly negotiate with domain owners or sell your own domain with a single click.
2. Search and evaluate the domain
When considering purchasing a domain, it is important to keep in mind a few aspects. In order to identify a domain with the potential to expand, concentrate on those that fulfill the following requirements:
The most commonly used Top Level Domains (TLDs) are .com, .net, and .org, which are known and preferred by people when purchasing a domain. Examples of domains following this structure include https://www.example.com or https://www.example.net.
When it comes to purchasing a domain, nobody wants to invest in a lengthy and cumbersome one. Therefore, it is advisable to opt for domain names that are distinctive and visually appealing. Aim for a domain name that falls within the range of six to 14 characters, ensuring it is effortless to recall.
To discover domains associated with popular keywords, utilize tools such as Google Trends and Google Keyword Planner which provide insights on the popularity and search relevance of keywords over time, without any cost.
To estimate the value of a domain before purchasing it, you can follow these two steps.
Research domain market trends
You can refer to DN Journal, a popular domain news magazine, for a biweekly domain sales report that showcases the latest global domain sales. Use this ranking as a guide when purchasing a domain name, as it provides insights into popular industries, selling prices, domain length, and relevant keywords.
One can deduce from the list that Gaming.io ranked as the fourth highest reported domain sale between August 1st and August 14th, 2022, indicating the trendiness and profitability of domain names in the gaming industry.
Use a domain appraisal service
To determine the potential market value of a domain, visit a domain appraisal tool like Estibot. These tools provide estimates of a domain’s price based on factors such as its length, wording, and SEO-friendliness.
In order to obtain a domain valuation report on Estibot, you simply have to visit the homepage, enter a domain name into the search bar, and select ‘appraise’. Following that, a table displaying overall details along with a brief list of the domain name’s advantages and disadvantages will be presented.
3. Buy the domain
After selecting a marketplace and a domain name to purchase, the next step is to proceed with bidding. Auctions operate similarly to other online auctions, where you have a specified starting price and a time limit within which to submit your offer.
The domain auction at Namecheap is depicted in the image above. Upon registering on the platform, you will be able to retrieve information including the domain’s SEO rating, length of the name, and the extensions registered with the keyword. Utilizing these statistics may assist you in making a considerate choice.
The amount of money you should spend on a domain depends on your budget. There are those who are willing to invest $1,000 in order to gain $5,000, whereas others begin with just $10. You are free to choose the starting point that suits your comfort level.
4. Prioritize memorable domains
As we have stated before, the simplest way to sell domain names is by having ones that are easily remembered and typed. The most desirable domains are those that are brief, real words or familiar abbreviations, and have the .com extension.
Some domain flippers may also consider the previous level of traffic a domain has received, as this can potentially enhance the value of a seemingly arbitrary domain name. Domains with a substantial number of backlinks from reputable websites can also be appealing, as this can provide a business with an advantage in search engine optimization (SEO).
It is crucial to refrain from purchasing trademarks when buying brandable domains. Although you desire brandable domains, trademarks, encompassing names of businesses and individuals, are safeguarded by the US government. Thus, your investment could ultimately prove to be fruitless.
It is advisable to use commonly used words or phrases (such as “pizza.com” or “travelmore.net”) that cannot be legally protected as trademarks.
5. Research keywords
If you are aware of what consumers are looking for, you will have a better ability to make smart decisions when purchasing a domain. Google Keyword Planner is an excellent tool for individuals who want to discover the most popular variations of keywords.
You can supplement your keyword research by using a domain name sales history tool such as NameBio. With NameBio, you have the ability to enter the keywords you have found, explore associated domains, and gain insights into their historical worth.
When conducting research, it’s important to consider the significance of local domains. Take into account the number of daily searches for phrases like “NYC pizza” and the potential benefits it would bring to a local pizza shop if they owned the domain “NYCpizza.com.”
These often overlooked domain names can yield a surprising profit for you.
6. Research similar names
It is crucial to avoid using trademarks, but you can think about buying domain names that are similar to a particular brand and do not have trademarks. For instance, the American Farm Bureau Federation successfully sold the domain name “fb.com” to Facebook for a staggering $8.5 million, making it one of the most costly domain sales ever.
If your occupation is owning a business, ensure that you do not acquire a domain that is connected to your rival’s brand. Engaging in this act could be interpreted as purchasing a domain with dishonest intent, and it may result in legal consequences.
7. Create a landing page
Some domain flippers choose to invest in hosting and activate a landing page as a marketing tactic. This landing page serves as an advertising platform for selling their domains, providing information on how potential buyers can contact them.
By following a logical sequence of actions, you can establish direct contact with potential buyers who are conducting domain name research and potentially improve your bargaining power for pricing. If you require assistance in developing a landing page, Name.com offers a one-page website builder for a minimal cost of only 99 cents.
Side notes
Flipping domains can result in significant profits, as valuable domains are consistently sought after. As you gain experience, you will become skilled at recognizing the domains that can generate the highest earnings.
Although flipping domains may not result in million-dollar sales for the average investor, it can generate additional income with little effort. To reduce your hosting expenses while creating landing pages to market your initial domain names for sale, familiarize yourself with available HostGator discount codes.
