Is Buying Domain Names Profitable
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Is Buying Domain Names Profitable?
This is in response to a question a fellow Moz community member once asked in Q& A, and we thought that it deserved its own article. Buying up expired domains, or purchasing keyword-driven domains is becoming more popular amongst the internet “get rich quick” crowd. The big question is: Can you make a profit by buying and selling domain names? If you get the right one, sure. If you plan on repeating the process over and over, probably not.
Something wise my father once told me “Something is only worth how much someone is willing to pay for it.” This small seemingly unimportant statement has guided me in many selling and purchasing decisions in my life. Sometimes, it makes the reality all too apparent. So, is buying a domain with the intention of selling it a good idea? Let’s break down the details, and talk to some people that actively pursue this method. Yeah, we know a guy.
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.
Attract Attention To Your Domains
When youre ready to display your domains to the public, you want to make sure youre advertising with the right venues. Make sure that the avenue youre using is trusted and well known. You dont want to get stuck in a scam that takes your money or seems untrustworthy to potential buyers.
It will pay off to use a place that not only has great ratings but also has licensing from a trusted government source. This will help clients want to pull the trigger because they know they can trust the brand selling the domain.
Another thing to consider is the distribution network. You need to make sure that you get your domain name in front of the right buyers.
Contact us today and let us help you make sure that you are approaching the right people, putting your domains in front of potential buyers, and getting the most value from the buying and selling process.
We have the resources and experience you need in order to start buying and selling domain names for profit. We actively help business owners and entrepreneurs buy and sell domains at the best prices on the market. What are you waiting for? Reach out to us today and let us help!
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How To Make Money Flipping Domains
If you havent heard of domain flipping yet, dont worry, many people havent. Flipping domains can be an extremely lucrative side hustle capable of making you thousands of dollars per month by acquiring the right domains and selling them for a profit.
Need a reason to give domain flipping a try?? Its EASY! Super easy. And it requires as little as $10 to get started. Thats right. For the same cost as your next lunch, you could get started flipping domains.
The process is simple. Just like flipping furniture or anything else, youll need to purchase your inventory before selling it for a profit.
In this post, Ill explain how you can get started flipping domains, how to pick the perfect domain names, how to sell a domain name, and much more. Keep reading to learn how you can start making money in no time!
Its Highly Important To Choose The Right Place To Sell
Although there are so many different places online to sell domain names, its important to stick to the best ones always.
One of my favorites is Flippa. Once you list your domain on Flippa, you may buy some targeted traffic to advertise your domain listing page.
Read Where Should You Start Your Domain Flipping Business?
The above article describes some of the best online platforms to sell a domain name. Hopefully you would make a profitable sale.
But still you should remember to write a great description that focuses on the value of your domain and why someone should purchase it.
Write a description that answers all the questions that an interested buyer might have in mind. Be realistic and dont make false promises.
Visit Flippa and read the descriptions of some of the recently sold domains.
This will help you write your own descriptions.
Selling domain names? Heres a few more domain marketplaces for you.
Afternic
List Your Domain on a Domain Marketplace
Many domain marketplaces attract repeat buyers who search through domain listings each and every day looking to find new domains to add to their domain portfolio. Several marketplaces also utilize domain name distribution networks, allowing them to partner with registrars and increase the visibility of your domain listing around the world.
Sell it at Auction
Similar to eBay, these sites let you create a domain listing, minimum opening bid, and reserve price. Some even allow you to set a buy-now price.
Flippa
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Building A Solid Domain Portfolio
Building a high-quality domain portfolio can take months or years to accomplish. Often, the key is looking forward to what domains may become popular in the future and hedging through numbers by purchasing hundreds of domains. Others choose to purchase a few already high profile domains and sit on them hoping that they appreciate in value.
How To Buy And Sell Domains From Flippa
To Buy or Sell Domain on Flippa, sign up with a valid Email Account and list your website or domain for sale. After listing your domain, it’s time for the description, people tend to write a long description, but thats not what it should be like. The description should be short and simple which does not bore the Buyer and gives the buyer a brief idea of your Blog or Website or domain.
Now the most important part is to Set Flippa bidding options.
- Set the Reserve price after evaluating it properly
- Set it to the price at which you can afford to sell your online property
- Set a Correct and reasonable Buy it now price
Keep the starting Bid price low, as you can encourage more users to Bid. After the Auction is successfully finished, do research about the user who has won the Bid and his history of the transaction. So that you can take proper measures before you initiate Blog/Website/Domain transfer and receive payments.
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Other Domain Name Value Factors
As mentioned before, existing traffic can make a domain name very valuable because traffic can be converted into money. However, there are several other factors that can make a domain valuable aside from traffic. The other factors that make a domain valuable include: type of extension, character type & length, hacks, and more. This is important because a domain does not necessarily need traffic to be profitable. As I will describe in detail later, I have made money by simply registering quality domains that have never been registered & then I flipped them for a quick profit.
How To Sell A Domain Name For Profit Step By Step
Wondering how to sell a domain name profitably?
Its not as hard as you think. You just need to have the right process in place and exercise some patience.
Heres the problem:
Many people undervalue their domain and sell it for far less than its actually worth. Just because they have no idea:
- How to value their domain correctly.
- How to get a good price for it.
Selling your domain name doesnt have to be difficult.
Im going to show you how to sell a domain name and make sure that you get a good price step by step.
What Will I Learn?
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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.
Domain Flipping Takes Time To Learn
Just like any other field of business, you need relevant experience to become a successful domain flipper. Buying domain names and then selling them at a higher rate is not a piece of cake. You need to stay under the radar for at least a year and learn everything related to domain flipping before you can start selling domains for a profit.
In the beginning, you will make several major blunders like losing money over useless domain names, missing prospective deals and much more but slowly, you will get the hang of it. The road to flipping domains for sums is not easy you need to climb a steep learning curve before you can become a pro.
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Be Aware Of The Risk Involved
Flipping domains is not entirely free of risk. There are three types of risks associated with domain flipping in terms of legality, liquidity, and subjectivity.
- Domain names can sometimes cause legal issues. This usually happens because some names are too similar to already trademarked names, which is why you need to think twice before picking domain names.
- From the liquidity point of view, you may have to wait for a couple of months or even years before you can make a profitable sale.
- Subjectivity refers to the fact that it is hard to realize the value of a domain name as compared to stocks. It is not easy to pinpoint the exact value of a domain name.
Now that you know all the details about buying and selling domains, we hope you start off your very own domain flipping business with ease. All you have to remember is to begin by learning all the tricks of the trade and invest a small amount of money before you decide to go pro.
Web Servers And The Internet
The Internet is nothing more than a large collection of computers attached to a telecommunications network and a set of protocols that establishes the rules for data to be sent and received by them. Most computers are linked to the Internet through a modem that directs traffic to and from a local phone or cable company. An Internet service provider directs the incoming and outgoing data through a local hub to regional hubs.
All the data that makes up a website is located on one or more specialized computers known as servers. Servers can be expensive to purchase and maintain, so companies, known as domain hosts or website hosts, lease server resources to subscribers in return for monthly fees. This allows most anyone to create a website that is available to the public on the World Wide Web , which is the collective network of all websites in the world that can be accessed through the internet.
In order for computers to understand each other, universal codes and protocols have been established. One of the most important of these protocols for websites and domain hosting is hypertext transfer protocol . It is this protocol that allows queries to be sent to specific servers so that the websites on those servers can be accessed.
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What Is A Domain Name
What is a domain name? That is the question many people ask when they first hear about them. In fact, I am often surprised that many people have no clue what a domain name is , much less how to profit from them. I am even more surprised that there are some people who have actually registered a domain and simply watched as their domain name expired after they decided to end their venture . So with all the confusion & questions, lets start with a brief definition & explanation of a domain name.
Sell Your Links Or Ad Space On Domain Parked Pages
If you have a website, then you probably know all about back links. As I already stated, search engines rely very heavily on back links as an indicator of a sites value. This is because links used to occur over the natural course of a websites development. They were slowly built up over months or years. A webmaster would link to another site if he or she felt like the site had good content or features.
After webmasters learned that back links could help get higher results in search engines, manipulations started to take place. Webmasters then started developing linking schemes designed to make their sites appear more popular than they actually were . Entrepreneurs have now realized that links can be valuable as well. This opened up a market to link selling and people now sell back links on their websites.
Some links can go as much as $50-200 a piece or more. But how do domains relate to back links? Well there are a couple of ways you can make money with this. First, if you have a domain that is generating traffic, you can offer to forward the domain to a site for a yearly/monthly fee. Secondly, you could build a simple one page site , write articles, and sell the back link.
Sell a Forwarding/Redirect Service
Now multiply that by 365 days in a year, and you come up with a value of $365. So roughly, the domain is worth at least $365 because it can generate this revenue in a year .
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Pricing Consideration While Selling A Domain
Domain For Sale
In 2009, insure.com was sold for $16 million which is equal to Rs. 1,14,46,40,000 . Mind-boggling, right? That’s just crazy and there are several other examples: insurance.com, vacationrental.com, etc.
This doesn’t mean you’ll also get astronomical amounts for your domain. A lot of the popular keyword domains have already been purchased. And it’s unlikely that you have a domain with common but attractive names To get an idea of the pricing, visit domain trading websites. You’ll know how much the domains similar to yours are being listed. Set the pricing expectations accordingly.