Domain Flipping Wont Make You Rich Overnight
Yes, we all love to hear motivational stories on how some lucky ones made millions out of selling a high profile domain name but in reality, this does not happen too often. Very few domain names out there can be sold in exchange for six figure sums, so your chances of becoming a millionaire overnight are slim.
But if you are thinking of starting a part-time business where you buy domain names and sell them off for a decent percentage of profit, then it is reasonable.
Okay How Much Can I Make Flipping Domains
If youve done a bit of research then you probably know that domain names can sell for A LOT of money.
Voice.com sold for $30 million on Godaddy recently.
Strength.com recently sold for $300,000 on Flippa and there are new sales every single day in the mid-six figures and up into seven figures too.
Not only this. But there are reports for domain names sold for millions of dollars. In fact, some of the domains have been sold at such a high price that you wouldnt believe your ears when you hear.
Below are some more domain names sold for millions and made their owners millionaires for just owning the domains.
This is how some of the worlds greatest domains have been sold in millions.
The truth is:
But the question is how you will make the same amount of money.
Truly speaking this is not everyones cup of tea. Because most people never take action on the information they get.
If you are one of them, you are not going to make it. But if you are not one of these people, you can probably make $100,000 a year.
Asking me how?
Thats what I am going to tell you. Honestly speaking, people really make thousands of dollars flipping only domain names.
Theres a special report you may like. .
In fact, at any given moment, there are hundreds of domains being sold at Flippa marketplace for hundreds of thousands of dollars.
The only purpose I have to show you all this data is to make you realize the true earning potential in this business.
Do you now realize its power?
Registering Or Squatting Domains Is Not Unethical
Another point of concern is that many people feel that squatting or registering domains is unethical. This is because many web developers have a hard time finding relevant domain names for their projects since most of them have already been registered. Many corporate giants also frown upon the domain flipping industry because many domain names relevant to them are already registered.
However, domain flipping is legal because buying domain names has been a legal practice ever since the internet came into being in the 90s. Treat domain names as real estate property sold in the offline world.
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Determining A Sales Path
There are different ways to sell a domain. For example, you can place a visible advertisement on the domains home page a for sale sign. Interested parties can then contact you directly to discuss the sale. Other domain dealers find great success through eBay. The auction platform has a well-known, reputable infrastructure. If you choose to trade domains through eBay, you can access the same features you already know from other products.
There are also other sites that you can use specifically to buy and sell domains. Platforms like Sedo or Flippa provide where you can advertise your domain. If you are also interested in the buying side of domain trading, perhaps to then resell them for a profit, these platforms are important.
Use Charm Pricing To Increase The Likelihood Of A Sale
Theres a reason a lot of products on store shelves have prices that end in 99 or 98. This is called charm pricing and it has to do with retail psychology.
You can and should apply this best practice to your domain name pricing. For example, even though a domain name priced at $1,999 is only $1 less than a domain name priced at $2,000, the $1,999 domain will feel like a much better deal to many potential buyers.
Domains, like most products with charm pricing, have been statistically proven to sell much faster. I know this may sound crazy, but it works!
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Godaddy Is Not The Only Kingpin When It Comes To Domain Registration
Indeed, GoDaddy is perhaps the cheapest and biggest domain registrar in the world of domain flipping so much so that people use the term GoDaddy with domain registrar interchangeably. This is because they run massive marketing and advertising campaigns that pique the interest of buyers.
However, GoDaddy is not the only kingpin when it comes to the domain registration business. There are many other great places for buying domains with excellent customer service and security support like Namecheap, Domain.com, Name.com, etc.
Some Things To Consider When Looking At Domain Sales
1. Not all sales are published
While many sales do happen publicly, most sales dont. The 3 sites above only document public sales. Public sales are still a good enough sample to get a picture of domain values. A good reason to follow DNJournal is that they sometimes get some details on private transactions that take place.
2. Some sales are outliers
An outlier is a sale that falls outside of what the rest of sales may show. Highly motivated buyers with an exact domain in mind often buy the domain even if its well above what all others would pay. If a domain is the right one, its still worth the cost in those cases. Those sales however dont clearly indicate what similar domains would generally be worth.
3. Evaluating domains is not an exact science
You could get opinions of value from every domain expert in existence on a domain and you still wont have it truly appraised. Domains are not like real estate there is no science for evaluating them. Looking at sales comps or appraisals could still have you be way above or way below how much a domain could sell for or cost.
At Domainate, weve sold over 15,000 domains and research domains daily. We have a clearer understanding of domains than most and can help you get the best one for your business within your budget. Contact us to get assistance on getting the right domain for you.
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Can I Sell My Domain Name But Keep My Website Online Too
Absolutely. The great thing about GetDotted’s domains for sale service is that you get to choose how everything works. As well as specifying a price to sell for , you also get a choice between keeping your current website up and running or having a free ‘holding page’ which will neatly present that your domain is for sale to any visitors.
Find Out What People Are Willing To Pay For Your Domain Name
Taking the time to do research and use estimation tools will undoubtedly be useful. This gives you an idea of the potential price you may be able to charge for your domain. However, its often best to go straight to potential buyers for a definitive answer.
For instance, a domain could theoretically tick many of the boxes we outlined earlier, but still not be one that people are keen to purchase. It could be that the domain simply isnt relevant to anyone, is too similar to an existing prominent site, or it has an unfortunate connotation that makes it less desirable.
On the flip side, the opposite could also be true. A domain that shouldnt be particularly valuable might be just what a particular website owner is looking for. This can make it much more lucrative than anticipated.
The best way to find these things out is by putting the domain name up for sale. That might sound drastic, especially if you dont actually want to lose the domain just yet, but it doesnt have to be a risk. In fact, many sites that enable you to buy and sell domains will also let you set a reserve price for them. If youve ever sold anything on eBay before, this should be a familiar concept.
Lets try this out for ourselves to illustrate the process. The site well use is Flippa, which is an online marketplace for domains.
If you decide that the cost of entry is worth it, click Sign Upon Flippas homepage and enter your personal details.
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Availability Of Alternative Top
Now with new TLDs, the combination possibilities of name and extension in the web address area have increased considerably. So, if you want to determine the value of a domain, the availability of alternative top-level domains must also be considered. For example, if you own domain.com but the alternative domain.org is still available, this reduces your chances of achieving a high sales price for your address. If you buy and register domain names with a wide variety of endings right from the start, you will have a better basis for negotiation especially if you focus on the most popular domain endings.
Often, companies and online services secure the desired domain name right away with the most diverse available top-level domains. In addition, there is the approach of publishing content under different sub-level domains. This is referred to as a multiple-domain strategy.
Consider Turning Your Domain Into A Profitable Website
Sometimes you might come across a domain that is a great option to build a profitable website on and instead of flipping it, you can choose to build a business out of it.
Whether your goal is to start a blog, build an e-commerce business, or grow various other types of websites, it’s important to remember that it’s okay to NOT flip a domain just because it may be profitable. You may have the possibility of making significantly more money by keeping the domain and growing a business with it. Once your business and website have grown, then you could consider selling it to cash in on your efforts.
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How To Sell A Domain Name At The Highest Price
Are you in domain flipping business and want to learn the art and techniques of selling a domain successfully and profitably?
Then this article is certainly going to help you.
Domains are like internet real estate and as a domain flipper, its crucial to learn the art of selling a domain name at the highest possible price.
There are domains that have been sold for millions of dollars.
Heres an Wikipedia article listing the most expensive domain names ever. Its true that people have paid that much to acquire just a domain name.
So you can imagine how much you could have earned if you were the owner of one of these domains. What could have happened if you registered such a domain on your name before it was sold.
You would have been a millionaire now.
But what made those simple domains sell for millions?
The fact is that the names may look pretty simple in your eyes. But the people who purchased the domains definitely saw something entirely different or they were made to see something different.
This is the art of selling a domain name at the highest price.
You need to learn the art of showing the highest possible value of your domain names in the eyes of buyers.
Thats what will make people buy your domain names.
A domain name is not just a name. But its so much more than this.
Every online business starts with a domain name. Its the first thing people would have to remember when they want to visit your site.
Is Domain Flipping Legal
Yes, domain flipping is legal. Whats not legal is cybersquatting, which is when you purchase a domain that incorporates a trademarked name with the intention of profiting from that trademark-holding entitys reputation. The Anticybersquatting Consumer Protection Act of 1999 protects business entities from cybersquatting.
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Beware New Tld Promises
Every time new TLD extensions are released, there tends to be a feeding frenzy of buying new domain names.
TLD refers to the back part of the web address like .com, .net, or .org.
While there are often going to be some winners with every new batch, many people drastically overestimate how much a new TLD domains worth will actually be worth.
This is a case of since there are so many different extensions now, theyre really worth less and less. After so much time, the .com is the gold standard with some sites cutting out a .net or .org reputation.
Although even those last two are far less common now than they were even ten or fifteen years ago.
Most people dont care about owning a domain name of their brand with .xyz or .increasinglyobscurelocation.
Unless you have dibs on a really unusual one that you know there might be interest in, its best to stay away from these. Theres way more hype with these than there is actual value to follow up.
Where To Sell Your Website
As with any sale, its incredibly important to make sure that you sell your website through a safe, secure, and reputable website broker to avoid issues.
We looked at Flippas business valuation calculator above but Flippa is mainly a marketplace for buying and selling online businesses. Once youve figured out what your business is worth, you might want to take the next step.
Describing itself as the #1 platform to buy and sell a business, Flippa has a handy directory of trusted business brokers, showing their location, specialties and the price range of the businesses that they represent. You can then list your business with your chosen broker through a Flippa account.
Again, Empire Flippers offer a great business value calculator and they can take care of the next step, allowing you to make more money than if you sold the site on your own.
When you list your business with Empire Flippers, it will be sent out to over 90,000 . This gets your site seen by more people and attracts more genuine interest. These connections allow Empire Flippers to target buyers that they know are looking for a particular type of site.
FE International is a professional website broker offering direct access to a global network of over 41,000 pre-qualified investors.
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Selling Domains And Selling Websites Are Two Different Things
This article has talked about domain name sales, not website sales. But, its worth taking a minute to talk about selling domains attached to websites.
Sometimes when you see that a domain name sold for a certain price, that sale price included the website and its files attached to the domains. The value of an existing website is easy to calculate, usually based on the income earned by the site. The domain name can be part of that value, but most of it is based on the amount of money generated.
Websites are often specifically developed to be sold. That can start with an established site that is given a quick cosmetic overhaul and flipped, or it can start with only a domain name.
The seller buys a keyword-based domain and then creates content based around that keyword to try to attract traffic to the site. If they can establish enough traffic to create advertising revenue, they have a sellable website.
If that sounds like a speculative and potentially costly way to make a website sale, it is. But the risk can be reduced by studying keyword popularity, employing successful SEO tactics, learning how to createor discoverattractive content, and keeping your hosting costs low with multi-site reseller accounts.