How Does Domain Flipping Work
If youre wondering how to make money flipping domains, rest assured that the process is fairly straightforward.
To get started with your own domain flipping business, youll need to purchase a domain name, which you can do from a number of websites.
Some places to buy domain names include :
- GoDaddy
- Namecheap
- Flippa
You can also buy a domain that recently expired in an approach known as domain drop catching or domain sniping. Website owners usually have a 30- to 90-day grace period to renew their domain name. If their payment lapses, you can often scoop up a domain name for a good price.
Some websites where you can monitor and purchase recently expired domain names are,
- NameJet
- JustDropped.com
- ExpiredDomains.net
When youre ready to sell your domain name, you have a few options. For one, you can keep your contact information public in the WHOIS database so a prospective buyer could reach out to you directly about purchasing the domain name.
WHOIS is a widely used internet database that stores the names and contact information of domain owners. If you dont want your details available to the public, you can usually hide them by purchasing domain privacy from your domain host.
You could also create a landing page at the domain page, where you state that the domain is for sale and direct a user on the steps they need to take next. You could also list the domain for sale on a website such as:
- Afternic.com
- Sedo.com
- GoDaddy Auctions
Domain Regulation & Authorities
Domain names are maintained and regulated by authorities and systems such as the DNS , ICANN , the IANA & more.
Basically, these systems & organizations are in place to deal with the technical aspects of domain names as well as making certain delegations & restrictions to ensure stability and expansion of the World Wide Web. For instance, ICANN oversees the introduction & approval of new domain name extensions, the regulation of the DNS, and much more.
Coms Dont Always Rank Higher Than Other Domain Extensions
There is a misconception that good .COM domain names are hard to find and so they are more expensive to buy. But once again, this statement holds no water. You can easily check out the .COM domain names that are on sale at highly affordable prices. However, the only downside to flipping .COM domain names is that you will have to discover them at different places like Flippa.com or private seller portfolios.
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What Risks Are Involved With Domain Flipping
As with almost any type of flipping business, domain flipping isnt without its risks.
You always run the risk of losing money instead of profiting.
Its much like those who buy houses to flip, spend a lot of money making the houses look the way they want, and find out that they could only sell it for the same amount theyve invested.
You could end up spending hundreds on your domains, only to get just about the same amount back, or maybe even less.
This isnt likely, though, once you get a hang for how it all works.
But, in the beginning, its a possibility.
Also, you should be aware that some of your domains could take months, or even years, to sell.
Its not always a quick process, so you should prepare to have some money available for your upfront investment that you wont need back right away.
And then there are always some legal issues involved.
You could wind up purchasing a domain name with a trademarked name without realizing it.
If that company wants to go after you for doing so, it can.
Or, if you buy a domain name that includes someones real name, he or she can fight you for ownership of your domain.
Things can get a little sticky when flipping domains, so its very important that you understand what youre doing, and know what to avoid, before you purchase domains for your portfolio.
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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Consider Investing In A Tool
If youre interested in purchasing an expired domain, there are several tools you can use to quickly browse many different auctions and domain stats. These tools will offer an easy way to view the domain authority of many different domains, their cost, and several other factors worth considering.
If youre planning on becoming a high volume domain flipper, these tools can become essential to grow your side hustle.
How To Make Money Flipping Domains 2021 Guide
For some reason, earning six figures is a big goal and target for many people online. Do you want to make $100,000? Probably.
To get straight to the point: yes, you can make $100k flipping domain names. IF you know how to do it properly.
The title says it all. Making over $100,000 a year is really not a big deal for successful domain flippers. In fact, you can literally turn $100 into over $1000 simply by flipping domain names.
In a rush? The latest version of my guide to domain flipping covers everything you need to make $1,000+ every month by flipping domain names.
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Why, then, do people get into the domain trading business?
Is there really a profit to be made on a $10 domain?
Absolutely.
Thats why people do it!
Its a legitimate way to make money, and its called domain flipping.
People who get very good at it do it as a business.
They earn money by buying domain names and selling them for a profit.
Those who really want the perfect domain name for their website will have no problem paying top dollar to be the lucky one to snag it.
For example, the domain Insurance.com sold for $35.6 million.
It was obviously one of those domains that someone knew would be profitable and worth the cost.
Most domains wont sell for nearly as high, but its possible that you can average between $2000 and $5000 for a profitable domain name once you learn how it all works.
Ill explain how to make domain flipping work for you in this post.
Lets get started!
How To Price A Domain Name
There are no golden rules when it comes to pricing your domain names.A domain name is only worth what an end-user eventually pays to acquire it. However, one of the best indicators of value in domain investing is the figures that similar names to yours sold for.
Generally, geo domain names are usually priced low for better turnover while other assets are priced according to your circumstances and goals at any point in time. This Namepros article discussed the pricing of domain names in detail
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Making Money With Domain Names
You don’t need to be the next Google to start making money online. Thousands of people are generating income by investing in domain names. They do this by buying, selling, holding, or developing domains to increase their value.
Domain names are the internet’s real estate, replacing land with virtual property. Like real world property, domain names can be bought and sold for profit, generate residual income, and developed to increase their value.
Buying and Selling Domains
Buying a good domain name and selling it over time is a common way for domain investors to turn a profit. Most good .com names are already registered and the ones that aren’t have to be developed from the ground up.
If you are looking into domains that are currently registered, you have a few options to consider:
Most recognizable and generic domains for the most popular tlds are likely to be registered. If you want to register a new domain with the intention of selling later, be prepared to put in a lot of time and effort into developing the domain. Any domain name has the potential to be valuable. One way to create value in a domain name is by adding useful content to the site to attract traffic.
Holding Domains: Parking for ProfitDeveloping Domains
How To Trade Domains The Most Important Tips & Steps
Now that youve got a glimpse into the domain market, youre probably wondering how you can get into the world of domain trading. In general, you dont need a lot for this and the amount that has to be invested is also very manageable. In theory, you can make profits with just one registered domain. How you should proceed if you want to earn money with domain trading, we tell you here.
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Selling A Domain Use Escrow
If you’re selling your domain name for a large amount of money, you’ll need to make sure the transaction is secure. The best way to do this is by using an escrow service.
This basically means that the funds are lodged with a third party, who only releases them when the conditions of sale are met. Be aware that scam escrow services exist, so we recommend you use escrow.com, which is undoubtedly the safest.
Feel your URL is worth more than the offers you’re getting? It might be time to think about spending some time on building a website around it, and making some money this way. Twelve months down the line, you should be able to demand a higher figure based on the income generated to date.
Domain Name Buying Tips
When it comes to buying your domains, you should seek the lowest price possible. Even a $0.50 difference adds up to a large amount if you register several domains. Here are some tips to save money when buying your domains.
1. Shop around The domain registrar market is highly competitive. You can often find that one company offers domains for a significantly lower price than another. You can typically buy new domains from $1.99-$8.99 . Again, you can use any company you want. I prefer Godaddy for the quick flips because you can simply push the domain to the buyers Godaddy account.
2. Coupon Codes Before I make a domain purchase with a registrar, I always do a quick Googling for coupon codes I could use. Often times, coupon codes can be found online for domains, hosting & more. I can often find coupons for: 10% off entire order, $5 off if the order is a certain amount, etc. This is a great way to cut down your registration expenses. It only takes a second to search, and it could save you a significant amount of money.
3. Register in the Bulk If you register domains in the bulk, you can often get a small discount. Again, you would want to check the registrars pricing information, but this may be better than using coupon codes.
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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.
When flipping domain names, you’ll 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 you’re looking for something more lucrative, you might give website flipping a try.
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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.
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Buying A Good Domain Name
For buying a domain name you can go to a domain name registrar like GoDaddy.com or NameCheap.com and create an account on any of these websites. Then you need to go to domain name search for the domain name in the domain name search bar of these websites.
You can search for a good domain name through a domain name generator website like Domain Name Generator from where you can get a good domain name idea with the availability of the domain also shown along with domain name ideas. In this way, you can easily find a perfect domain name to buy.
After you type in your desired domain name into the search bar of the domain registrar website and press enter, you will receive results immediately showing the availability of the domain name you are looking for. Either that domain name will be available for purchase or it will be unavailable for purchase. If it is available for purchase then you can add that domain to cart by clicking on add to cart button and check out. You need to have PayPal or Credit Card connected to your account in GoDaddy.com and Namecheap.com in order to pay for your purchase. After your payment for the domain is successful, you will immediately receive an acknowledgement receipt from your domain registrar mentioning the details about the domain you purchased.
1) Making a Well Monetized Micro Niche Website 2) Selling Domain Names 3) Domain Parking On Sedo.com
Look For Avenues To Sell
You have a strong collection of domains to sell, now where do you find the right buyers?
Investors looking for where to buy and sell domains will discover many platforms, but there are a few things to consider when selecting the best one.
- Figure out the venues reputation. When investing in domain names, it’s absolutely essential that the platform you choose for selling your domain is trusted. There should be guarantees that you get paid to trade domain names and that your buyers actually get the domain they paid for. Use the Better Business Bureau when sizing up trusted bodies. Using trusted venues will give your buyers confidence.
- Size up the distribution network. How many people are using the platform you selected to browse for domain names? Venues like GoDaddy, Flippa, and WebsiteBroker are platforms with a strong distribution network, making them the best places to buy and sell domain names. Read more about a place to buy and sell in this full Flippa review.
- Employ outbound sales. Reach out to people you know who would benefit from your domain names. If you selected domain names that are relevant to your industry as previously suggested, then you won’t find it hard to express the value proposition of the product to a potential buyer.
Outbound sales also include selling your domains to potential investors. This method will most likely end up with you having less profit, as investors are looking buy for cheap then flip domains for profit.
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How Much Money Can You Make Domain Flipping
Some people have made hundreds of thousands of dollars flipping just one, yes ONE, domain! Domains such as z.com, toys.com, and slots.com all sold for over $5 million, just for the domain name!
Now, theres a good chance you wont run into any of these domains in 2021, however, the ability to make money still exists. Even if you can purchase a domain name for $10 and sell it for $100, thats a $90 profit. Multiply that by 100 domains and you can easily make an extra $9,000 annually from this side hustle.
Domain flipping can be as profitable as you can make it. Every time you flip a domain name you can then reinvest your profits and buy another domain to flip.
What Is Domain Flipping
The high-level strategy behind domain flipping is simple. A domain name is a unique string of characters used to conveniently direct people to a website to use one, you need to register it, so you can have exclusive access to it.
If the domain name is available, you can buy it outright. If the domain name is currently held, youll need to make an offer to purchase it from the current holder.
Domain flipping is the practice of buying a domain name as cheaply as possible. Then, without doing anything with the domain, youll sell the domain to an interested party for more than you originally paid.
Theres a bit more to it than this, but this is the basic premise.
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