Is Domain Flipping Risky
As with any business, there is some slight risk to domain flipping. But heres the good news: your losses can be extremely small. Because a domain name only costs roughly $10 annually, thats the amount you can lose.
With that said, if you end up purchasing hundreds of domain names, those annual renewal costs can become costly so youll want to ensure you have a plan for each domain.
Dome name flipping can be as risky as you make it.
What Is Domain Name Flipping
Domain names can be extremely lucrative, and companies are willing to pay top dollar for some of the premier names. For example, a domain with a name like sidehustles.com might be worth significantly more than another domain. Typically, shorter domains will be worth much more than longer domains. More on this below!
Domain flipping is the process in which you purchase a domain and sell it for a profit. The price you can sell your domain for is completely arbitrary.
When flipping domain names, youll need to put in the time and effort to succeed. You can check out the video below to learn how this person has made great money flipping domains.
If youre looking for something more lucrative, you might give website flipping a try.
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Online Domain Real Estate Has Real Value Here’s How To Understand It
While there are an infinite number of possible domain names, each can only be used by one person or company. You might wonder why some domain names are worth $2.00 and others $2 million. According to Godaddy.com, some of the most expensive domain names publicly reported include: CarInsurance.com for $49.7 million, VacationRentals.com for $35 million, and Sex.com for $14 million. Why? Well…it’s complicated!
There are a few reasons you might want to know the value of a domain name. You could own a domain name and want to sell it. Maybe someone has approached you, and you need to know what’s fair value.
You might decide to invest in promising domain names to resell later at a profit. Each online address can only represent one company, and a limit in supply combined with high demand means profit.
Over the last 25 years or so, virtual assets like domain names have created millionaires and even billionaires. You could want the best possible domain name for your business.
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The Importance Of Long Term Thinking
All of the above wont work if you list too few domains, or if you dont list them long enough. For example, consider what would happen if you listed the same 30 domains on Brandpa for only 3 months:
- Domain renewals for 1 year = 30 domains x $10 each domain = $300
- Brandpa one-off listing fees = 30 domains x $5 = $150
- Total costs: $450
On average, your expected earnings would be zero in this time:
- Number of domains sold over 2 years = 30 domains x 0.25 years x 0.066 STR = 0
- Total profit = -$450
This is with the exact same domains as the previous scenario, only not enough time. You shouldnt expect domains to sell in weeks or even a few months. Plan for 6.6% to sell each year and hold accordingly.
Tips To Get A Great Deal Selling Your Unused Domain Name
Domain names can sell for anything from a few hundred dollars, to tens of thousands of dollars in some cases. There are even sales in the hundreds of thousands of dollars in some unique cases. The real valuation of a domain name comes from a number of factors, and by understanding those factors, you can increase the value of your domain before you make the move to sell it. A lot depends upon where you are in the process as well.
Domain Name buying and selling is one of those things that many people don’t even realize is an activity that goes on, yet there are a surprising number of entrepreneurs out there that are making a tidy profit from domains within that online marketplace. All you have to do is browse the list of top 100 domain name sales on DN Journal to realize just how much money is at stake here.
Domain names can sell for anything from a few hundred dollars, to tens of thousands of dollars in some cases. There are even sales in the hundreds of thousands of dollars in some unique cases. The real valuation of a domain name comes from a number of factors, and by understanding those factors, you can increase the value of your domain before you make the move to sell it. A lot depends upon where you are in the process as well.
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Where Can I Sell My Domain Names
There are lots of different domain name marketplaces which you can use to flip a domain name and each of them has their advantages and disadvantages.
The selling of your domain is something I cover in my guidebecause if you are smart you can slowly reduce the reliance on these marketplaces to avoid their fees and make even more money.
If you would like to buy domain names and sell them online, then to start with you will need a platform or a marketplace. Below are some of the most popular marketplaces where you can start your first domain flipping venture.
Since, its all about buying and selling domains, you should choose only the best platform to start your business. Why I highly recommend Flippa is because Flippa is one of the top website and domain brokers in the world.
It is visited by thousands of sellers and buyers on a daily basis. Although there are many other sites doing the same job, Flippa is the best place because of its high number of visitors.
Tons of high quality domains are getting sold on Flippa at any given moment.
Flippa is the most visited site of its category.
It is one of most visited 1000 websites in the world and United States.
More visitors means more earning potential and obviously more opportunities to grow your business. Its a place to get thousands of potential buyers.
Flippa is not the only place where you can sell domains. There are some other big names also. One I will like to recommend is Brand Bucket.
Prepare Your Domain Listing
Once youve chosen your marketplace its time to optimize your listing. A lot of sellers just upload their URL and call it a day. However, you can maximize your chances of selling your domain by making it more attractive.
For example, does your domain have any existing traffic? Does the domain have considerable age? Does your domain have any existing authority?
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What Factors Make A Domain Name Valuable
Knowing whether you have a valuable domain on your hands doesnt require a ton of work, but it does require that you understand the factors that lead to a domain being valuable.
Often, the value that a domain holds will be determined by how desirable the domain name is. The list of factors below can help to illuminate whether or not your domain is valuable, but its not a science or always right.
Theres always the chance that your strange and unique domain could align with a phrase from another country, or be the ideal name for a new startup.
Overall, the conditions below will be a good indicator of how valuable a domain actually is.
How To Sell A Domain Name
Did you purchase a domain name with every intent of starting a website? But time caught up and you lost interest or never got around to starting the website? Now youre thinking about how to sell a domain name. Instead of just letting the domain sit there, there is a way to make some extra cash from your unused domains.
Now, not every domain you own is going to sell for a huge fee. But, you might be sitting on some unexpectedly valuable domains.
Below youll learn how to sell a domain name, the best ways to find buyers, and places online where you can list your domain for sale.
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How To Sell On Opensea Without Paying Gas
If youre familiar with Etherium blockchain, gas fees on OpenSea are similar to the transaction fees you already know. When you transfer crypto to a different wallet or purchase an NFT on OpenSea, you should have enough ETH in your wallet to cover the initial transaction and the gas fees.
However, OpenSea recently introduced a new marketplace Polygon, where you can sell NFTs without paying gas fees.
To create a Polygon collection, follow the steps below:
Now that youve created a Polygon collection, heres how you can sell your NFTs.
What Details Do I Have To Share With The Buyer At The Time Of Domain Selling
In most cases, you will have to provide all the necessary information related to your domain name, including its age and history. In some cases, you may also be required to share the reason for selling your domain online or offline. You can also create a list of backlinks that will help potential buyers check out your websites performance in search engines.
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Places To Find Out How Much Domains Have Sold For
Posted: November 6, 2011| Steve Jones|Filed under:Domain Questions | Tags:domain sales, domain valuation|
If you have trouble figuring out a domains value, youre not alone. Domains are simply impossible to pinpoint the values of. 3-letter domains have the most documented value trends and still the value might vary by hundreds of percent depending on buyer.
Purely brandable domains vary even more in value, by thousands if not tens of thousands of percent. What one person wouldnt even register, another might buy for 5-figures.
What can you do to understand more about the values of domains?
In the real estate world, appraisals are done by looking at comparable sales . Different real estate appraisals usually vary up to 10%, or 20% in rural areas where less sales happen.
Domains may be much harder to evaluate, but looking at comps is still vital to understanding domain values. Seeing past domain sales, especially multiple ones similar in niche or industry, guides you toward an answer.
Use An Escrow Service To Receive Payment
One way to safeguarding the selling of your domain is to use an escrow service. This will help you avoid being scammed or tricked by a potential buyer.
An escrow service will act as a neutral third-party that will safely hold and process the funds.
Some selling platforms like Sedo have a built-in escrow process for every transaction done through the site. This will take a percentage of the final price, but safeguarding your domain is well worth it.
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Is It Profitable To Sell Domains
If you are looking for a good business venture, then it is good to look at domain names as one of the options. However, before trying your hand at selling domain names to make money fast, it is good to have some basic knowledge about this type of business that will help keep your mind open to new opportunities and possibilities.
Domains With Similar Names Can Be Sold For A Profit
Now here is something you need to understand when it comes to flipping domains successfully just because someone spends an enormous amount of money on a domain name does not necessarily mean they will throw big bucks to get a similar name too. Never base your domain flipping strategy on such assumptions because that rarely ever happens.
Every domain name piques the interest of the buyer due to a unique reason and the sale that follows is just as unique as the reason why the buyer wants to spend a huge sum of money on that particular domain name.
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Is There Money To Be Made
Yes, but its not as easy as it sounds.
These are the main ways that Ive observed how people have made their money when it comes to buying and selling domains
Early adopter
These are domainers that started registering premium domains back in the 90s and held onto them until an offer they were willing to accept came their way. Since we cant go back in time, this isnt really an option that can be utilised now.
Drop catcher
These are domainers that will spend lots of time looking at lists of domains that are expiring. They then set up a bot or piece of software that will register or catch the domain to the millisecond of it becoming available to register.
Many great domains can expire for whatever reason, perhaps the business no longer exists, the domain is no longer wanted, or someone simply forgot to renew it. I recently had a personal experience where I forgot to renew a domain and a drop catcher caught it, put it on an auction website, and sold it for £1,550. So there is money to be made here, but its not as easy as it sounds. It can be time consuming trawling through lists of domains that are about to expire and often a good domain will have many drop catchers after it, almost turning it into a raffle for who wins it.
Often drop catchers are looking to turn a profit and sell their freshly registered domain quickly, and because they dont want to hold onto them for too long this can sometimes present a buying opportunity for other domainers.
Research What Similar Domains Are Sold For
To figure out what people may be willing to pay for your domain name, you need to know what people are charging for similar domains. We mentioned earlier that the value of a given domain can shift dramatically over time, so you probably cant use what you initially paid for the domain as a baseline.
At this stage, you will need to do some digging to see what domain names are currently being sold for and compare them to the ones you own. Fortunately, several sites collect information about domain sales. One of these is DN Journal, which can tell you about the past three weeks highest reported sales.
Another site that does something similar is Domain Name Wire. On its blog, you can find regular roundups of prominent, recent domain sales.
If your domain is concise, you may find ShortNames especially useful. This site also collects recent sales, but specializes in short domain names.
These sites are all handy resources to help you track what names are selling for the highest amounts. For example, if we take a look at the most recent list provided by DN Journal , we can spot several domains that match the criteria we outlined earlier.
Featured prominently in this list are short, memorable, clear, and keyword-heavy domains. If one of your domains is very similar, you might be sitting on a potential goldmine. These roundups can also help you catch recent trends in domain names.
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