Flipping Domain Names
In some circles, domain name flipping is a controversial subject. It however remains to be a viable opportunity to make money for those interested. Unlike real estate where potential buyers see the seller privately, web domains are traded openly making it easier. Domain name flipping is the same as real estate flipping. You buy a domain cheaply and sell it for more and yeah, it is possible and profitable.
Domains are what makes a website easy to find plus the value of the website can hike with a good domain name. Before websites like LasVegas.com became what they are, the owners had to buy these names for a fortune from a domain flipper. Nobody ever thought a single domain flip can make a business fork out $90 million to own these names.
What is domain flipping?
Before we dive deep into domain flipping, what is a domain name? This is a distinct combination of characters used to direct internet users to a specific website. For you to use it, you must have it registered to give you exclusive access to it.
If the domain name you want is available, you can buy it outright. However, if the domain name is held by another person, you have to make an offer to buy the names from the current owner and this is domain name flipping.
Domain name flipping is the act of buying a domain name at the lowest cost possible and without doing anything with the domain, you sell it to an interested person for a higher price than you initially paid. There is more to domain name flipping but that is the basic principle. It is buying and selling domains to make money. Domain flippers have an eye for detail enabling them to choose domain names with domain authority in the market in a bid to make money out of it. This can be an amazing side hustle that can help you make some money online. If you are a beginner, you can start step by step and rise to become a successful domain flipper. You only have to be consistent and use search engines to your advantage gathering all information about the trade as possible.
Let me give you examples. In 2005, the domain LasVegas.com was sold for a whooping $90 million and in 2015, Qihoo a Chinese brand bought the domain 360.com for $17 million. Excited yet? You should be. But most people probably think, what are the odds of making these huge sales? And you are right, the odds are slim. But that doesn’t mean that domain name flipping isn’t profitable or it cant be a money making venture. There are people doing well selling domain names with much more modest and realistically achievable numbers. The mistake a flippa can make is thinking that domain name flipping is a get rich quick scheme. It’s not! There’s no way domain name flipping will make you rich overnight. However, with consistency and patience, it is bound to make you some cash. The domain name flipping industry is similar to the real estate industry. There are brokers, end users, consultants, and the domain name flippers. The gist of it is the same with real estate. You purchase a domain name and bet it is worth or will be worth more than you initially paid. If you are on the right side, you get a nice check and move on.
Why flip a domain?
For the better part, making profit is the motivation behind domain name flipping. Domains are pieces of online real estate and the right ones are incredibly valuable. There are domain name users out there willing to spend a fortune for that string of unique characters you have lying on your computer. Did you know that Cars.com is the most expensive domain name ever sold for $872 million? That is real money right? With flipping domain names, there are risks associated with it just like any other business. Some people go all in and end up hoarding a lot of domains without a buyer. Others aim at making achievable amounts with their domains as compared to waiting for a huge paycheck that might never come. If you choose a domain with a lot of potential, you might end up getting a significant profit after flipping the domain. The challenge here is knowing which domain to buy and the one to leave alone. All this is nice but how is it done? Lets take a look at the steps involved in flipping a domain. With this you will understand how people are making domain name flipping a full-time career.
Flipping a domain name?
Let’s assume you are very interested in domain name flipping. Many people make the mistake of thinking this is a get rich overnight scheme. If you have a new domain ready for sale these are the steps you have to follow to succeed.
Start with searching for a domain
Just like in real estate, you have to get a domain that is worth buying and has potential. To make the most profit, you have to optimize your strategy. This is achieved by finding a domain that is cheap to buy and has potential to make you a lucrative amount when you sell.
There are online tools used to scout for original domains. You can use a domain name search online to scour for domains related to a specific service, product, or topic. Godaddy is an excellent place to start. The aim here is to get a great domain with lots of potential. Godaddy lists a number of domain names ready for sale even the expired domains which is an excellent opportunity of making money online. Domain auctions are also good places to check where you get a list of many domains being sold and view your options. If you go for expired domains, make sure you know the risks involved. As a matter of fact, go for an expired domain only if it has domain authority potential. Otherwise, this is for the experts who know the ins and outs of how to sell a domain name.
Evaluate your choices
You now have one or two domains that are pocket friendly. You have to spend time evaluating the domain. Several factors make a domain name potentially valuable.
- Search friendliness
You might also be forced to do some independent research on your own to predict if you can sell the domain for more than you purchased it. Ensure that you check the historical sale prices for similar domains. This will guide your choice and help you make better decisions when evaluating your domain.
Remember the names you choose will be used by a website. Think like an end user and think of how easy it might be to access the website or websites once they purchase your domains. If you were to give the domains a rating, how much would you rate it for?
Register your domain name
Assuming you now have a single domain whose potential value is high, you need to register it. Purchase and register the domain to your name. It is a simple process that won’t take much of your time but it is a very important one. The domain name doesn’t become your asset by simply buying it. You have to buy it and register it under your name just like in real estate. The house isn’t really yours until it is registered in your name. If you want to sell your domain, you have to go through a domain registrar.
Find a buyer
This is probably the hardest and most variable step. A good domain has the potential to make you a good amount of money. For you to flip the domain for a profit, you have to find a person who is willing to pay a higher price for the domain that you initially did. This is the process that determines whether you make a profit for your domain or you will continue holding it waiting for a higher amount. This is a versatile step and there are a few angles you can take here. The first one is using the buy and hold strategy. This minimizes your effort and you wait for the interest in the domain to rise. You can make the registry public where potential buyers can find your contact information. With this, they might reach out to you privately with an offer or bid if they are interested. Another approach is the aggressive one where you create a landing page for the domain and appeal to the people interested in buying it. A faster and more direct approach is where you list the domain at an auction. A domainer who flip domains for a living must have patience inscribed in him.
Sell the domain
When you find an interested buyer willing to match your price, selling is easy. the buyer pays for the domain and you transfer ownership of the domain upon the new registration. This is a very simple task that takes little time. Some of the most difficult to sell are expired domain names but the issue for the flippa is just getting a buyer. otherwise, an expired domain has the potential to make you a decent amount of money.
Are there risks associated with domain name flipping?
Just like in any other business, flipping domains has its own risks. There are risks associated with being a domain flippa in terms of liquidity, legality, and subjectivity. Some domain names can cause legal issues. This happens when some names are too similar and already taken and trademarked. This is why you need to be vigilant and do a lot of research before picking your preferred domain name.
In terms of liquidity, you might have to wait for a couple of months and sometimes years before making a profit from a domain name sale.
With subjectivity, we look at the fact that its so hard to know the value of a domain name as compared to for example stocks. Nobody can easily pinpoint the exact value of specific domain names. Buying and selling domain names is an amazing side hustle. If you want to make some passive income flipping domains, arm yourself with information and be patient for the best results.
Domain flipping is a realistic way to earn some extra cash and get involved in the online real estate world. You will need a discerning eye, a bit of expertise, and timing. Most of these names have domain name value but you need to know how to goo about it. If you are consistent, you can then make a reliable income from domain flipping. For the professional domain name flippers or domainers, they have dozens and others hundreds of domains on their fingertips at any given time. They constantly buy and sell domain names to maintain their cash flow and momentum. These are the full-timers who have the expertise which allows them to go through this faster, have the ability to determine if a domain is valuable or not in a short span. You don’t even need a lot to get started or to make this a profitable business.
If you want to venture in domain flipping, start small and don’t rush your buying or selling decisions. Just like in business, stake what you can and don’t expect profits overnight. See how it goes and learn as much as you can from your mistakes then improve your tactics. If you are consistent in this, you will soon be able to succeed and make a career out of it.