Do you have these questions in your mind?
- Is selling a domain profitable?
- Want to know more about domain flipping business?
- What is the best way to sell a domain name?
- How can I sell my domain immediately?
- How much can you make selling a domain?
- Know about the best website to sell domains
In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.
Table of Contents
What is domain flipping?
Have you ever bought a property and sold it for a good profit margin? Maybe you have, or perhaps you haven’t, but one thing is for sure you must have heard of such businesses.’
Buying and reselling assets is an old business model, but did you know you can do the same with domains!!!
Yes, a domain marketing business is a digital version of the same idea.
Domain flipping is the process of buying and selling domain names for a profit.
Seems easy!!….. Is it that easy?
Well, it’s not that difficult too. You will know what I am talking about, once you glide through the article.
Let’s start with the basics first:
A domain name consists of a domain and a TLD; it is the name and address of your website.
In simple words, a domain is the name of your website; for example, www.100BusinessIdeas.com is a website; here, just "100businessideas" represent your domain name.
TLD (Top-level domain) A TLD is a domain extension that looks like a suffix beside your domain; for example, 100businessideas.com, here .com represents the TLD.
Why choose Domain Flipping Business?
Every business involves risk in one or the other form, and the same is the case with domain flipping but what’s exciting about the business is that it’s a one-stroke game.
Once you get hold of the business, there is no other business like it.
Domains could be precious assets when you know how to find a valuable one.
- It is a low-cost business to start
- Do not require any qualification; just the knowledge of it is enough in itself
- Any person, irrespective of age or experience, can start this business from anywhere, at any stage of life
- Thousands of people are already earning out of it, and you can too.
- Domains are just like any other digital assets you can buy, own and sell online.
The plus point with this business is that, unlike other companies, the scope of domain flipping is not limited; the market is undefined and infinite, as websites will never cease to exist.
Websites and domains will be more in demand as digital marketing proliferate into industrialization.
Did you know?
The domain, Cars.com was sold for $872 million!!
Budget to Start a Domain Flipping Business
It is one of the most common questions that you come across when you think of starting a business.
Well, that’s hard to answer. Domain flipping is a bit of a numbers game.
Sometimes you purchase a domain for a few dollars and end up making thousands out of it and sometimes, you may own a domain for months or even years and sell it for hardly any profit margin.
The trick is to purchase potential and inexpensive domains in bulk so that even if every domain does not make you a profit, a few selling a good appreciation could cover your losses and make a handsome profit.
But if you are looking for some advice, you'll probably need to invest at least $1,000 (100 Domains) upfront to get a good sense of what works and what does not.
How to start your domain flipping business (Step by Step)
Step 1: Search a domain
First and foremost, where to find domains?
There are thousands of ways by which you can find out potential domains.
You need to know about the available platforms and select the right one. Initially, try to look for a domain that’s both inexpensive and potentially lucrative to sell.
Step 2: Evaluate the Domain before buying
Various factors determine the value of a domain.
Some significant factors you need to keep in check are as follows:
Domain name
A valuable domain name is:
- Short
- Search Friendly
- Easy to remember
- Easy to spell and catchy
- Brandable
- Distinctive
Top-level domain (TLD)
Various types of TLD are available; a suitable TLD can add significant value to your domain name.
It would help if you choose a TLD that is either:
- Old and Popular like
- .com, .co, .org, .net, .gov
- Modern and New like
- .life, .info, .cloud, .store
Backlink profile
Checking the backlink profile can give a fair idea of the value that a domain hold checks for:
- Quality backlinks
- Domain Authority
- Optimized anchor Texts
- Sale/ traffic history
Step 3: Register the domain name
The next step is, if you have found a potential domain, you can buy it and register it to your name.
There are a few different ways to acquire domain names, including purchasing them directly from individuals or companies, bidding on them at auction, or finding them through domain name drop lists.
As you acquire domain names, be sure to keep track of the costs associated with each domain, as well as any renewal fees that may be required to keep the domain active.
You can register new Domain via
- Godaddy
- Hostinger
Registering your domain can cost you around $10 per year.
Step 4: Find a buyer for the domain
Usually, We look into parking domains for sale on platforms like Godaddy, Namecheap, eBay, Flippa, Sedo, and Bedo.
They provide you with all the services from searching to buying, selling, and registering a domain name. In addition, you can list your domain on any of these platforms.
Create a domain landing page that appeals to people interested in buying it. An investor may look into your page to find a suitable domain, but this approach works only if your website has a high Google ranking and considerably good traffic.
TIP – You can also consider making your Domain Registry public. This will allow prospective buyers to find your contact information and offer you a bid if they’re interested in your domain.
Step 5: Sell the domain
Finally, when you find prospective buyers for your domain, sell it to them at a good profit margin. Again, this is also a simple process and doesn’t take much time.
There are a few different ways to sell domain names, including listing them on domain name marketplaces, using an escrow service to facilitate the sale, or negotiating directly with buyers.
Here are some other platforms to look into for Domain purchases that regularly offer great discounts:
• GoDaddy
• Namecheap
• Domain.com
• Flippa
• Google Domains
TIP: Domain auction is also a good option; here, you can find a list of many domains currently being sold. Do check out the expiring domain auctions for possible options as well.
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How to find a valuable domain?
There are various factors that determine the value of a domain.
Research the market:
Before you start buying and selling domain names, it’s important to research the market to understand what types of domain names are in demand and what types of domain names are likely to sell for a profit.
This can involve researching trends in specific industries, looking at the types of domain names that have sold for high prices in the past, and keeping an eye on the current demand for different types of domain names.
Domain Brandablility
A brandable domain name is a memorable name that may or may not have any particular descriptive meaning.
Brandable domains are:
- Cranky
- Short
- Easy to remember
- Distinctive
Example:
Google, OYO, Adidas, Puma, xoxo, Amazon, Pinterest, etc.,
Before Google became a brand, who would have thought such domains could exist and be worth trillions of dollars?
Search-Friendly-ness
Did your domain name also affect SEO (search engine optimization)?
Domain names that contain an SEO keyword are more likely to get clicked on in the search engine result page (SERPs). Therefore, it might help the site rank higher.
Here’s how I determine a search-friendly domain:
• Keyword
The domain name should contain a keyword
• Searches per month
A SEO friendly domain name must have 200+ searches per month
• Bidding
Does your domain contain a keyword worth bidding for Google ads?
Niche relevance
When discussing Niche domain flipping, we refer to targeting specialization-specific domain names. Choosing a niche-relevant domain can help you target businesses related to that particular section.
Top Level Domain
The top-level domain (TLD) refers to the ending of the domain name, such as .com, .org, .in, .co, and the list goes on and on.
There are tons of different TLD options you can buy these days. But only some TLDs are popular and profitable.
You need to make sure you are buying TLD that adds value to your domain name.
Always Look into Backlink Profiles for an expired domain
A domain’s value is locked in its backlink profile.
Backlinks are the websites that direct traffic to your website by sharing your website link on their website page. A backlink profile shows a collection of such backlinks of a site.
A strong backlink profile makes driving referral traffic to your site and achieving higher rankings easier.
Some domains that can have a solid backlink profile include extensions such as .edu, .gov, and .org.
The three most popular old top-level domains are:
- .com
- .net
- .org
Some new extensions to check out are:
- .app
- .site
- .online
- .store
- .shop
Things you need to take care of before buying a domain name
- Copyright
People often need help getting domains that infringe the copyright of other businesses. These types of domains are less likely to be sold and can also cause you some legal trouble.
- History with Google
A domain might have been used earlier for activities that Google does not approve of, such as distribution of content opposite to Google’s policy.
If it turns out to be it, it can be a significant loss for you, so you better watch out for domains with bad history with Google (a Blacklisted Domain)
Tip – Use Google archive.org (Wayback Machine) to check out domain history.
- Keyword research
When it comes to the popularity of domains or websites, SEO sure is a significant factor, and one of the effective ways to target SEO is keyword research. SEO-friendly domains are always more in demand than other domains as they are more likely to be used for business or blog purposes. - Evaluate the value of your domain names:
It’s important to determine its value so you can price it appropriately when you’re ready to sell it.There are a few different ways to do this, including looking at the prices that similar domain names have sold for in the past and using online tools that can help you estimate the value of a domain name.
The way I evaluate a backlink profile is simple, I check -
• Number of quality backlinks the domain has
• Rank of each backlink
• Naturalness of the Linking Page
• Domain Authority of linking Root Domains
• Any optimized anchor Texts
• The Social Share Magnitude of each Backlinks
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Strategies To Make Profitable Domain Flipping Business
- Drop catching / Drop Sniping
Domain catching refers to buying and selling an expired domain. It is the most common domain-flipping strategy, sometimes called domain sniping.
Expired domains usually cost lower than domains sold directly at an auction. Sometimes expired domains have a Chance of having a good backlink profile with authority links, so buying an expired link can be a profitable deal. - Keyword research
Research trending keywords with tools like Google Keyword Planner as domains related to keywords are more likely to get clicked on in the search engine result page (SERPs) hence helping the site rank higher.
Also, look into domain name sales history using a tool like NameBio; with this tool, you can search for related domain names for your keyword, look into its sales history and learn about its value. - Consider targeting local domains
We often overlook local domains; by local domains, I mean the domains that relate to local businesses.
Just Think about it… Imagine how many people could be searching for something “NY Pizza” each day and how valuable it could be for any local pizza shop to own “NYpizza.com.”
Tip: Keep an eye on innovations, products, or services. Buying a domain related to such topics could be significantly profitable. For example, cryptocurrency, if you caught on to the very concept long before it became popular, you would have bought a domain like Cryptocurrency.com at a meager price, and today you couldn’t even tell what fortune it could have believed you.
Risks of flipping domains
- One significant risk of flipping domains is that you’ll make investments that might not pay off as expected. Some domains can profit you, while others will be wasted.
- There are no fixed factors determining the value of a domain.
- Domain-flipping businesses offer no guarantee that a domain you purchase will have a higher value in the near future, unlike investments in assets or properties.
- Invest as much as you are willing to lose. Start by flipping one or a few domains to determine market trends.
- Start small, and invest in an inexpensive but potential domain. You can buy a domain for less than $10 per year, so target the inexpensive ones first.
- Evaluate the domain thoroughly before buying, check out the TDL, and carefully search friendliness, backlinks, and sales history.
- Ensure that the domain name you are buying isn’t blacklisted
- Consider investing in local domains or domains resembling known brands.
- Invest in new domains or new domain extensions. Such domains have the potential to grow as a trend; for example, “.me” is trending now a days.
Domain Flipping Vs Domain Registration Company
While domain flipping is simple, business plan domain registration and hosting is a comprehensive and complex process.
You can start a domain-flipping business individually and scale up later, even if you start as a business.
You will need to take care of only 3 main operations:
- Searching a domain
- Evaluating a domain
- Selling a domain
While domain registering and hosting company would require a setup to start a business such as –
- Plan your Domain Registration and Hosting Business
- Form your Business into a Legal Entity
- Register your Domain Registration and Hosting Business for Taxes
- Get the mandatory Permits & Licenses for your Business
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Business
- Get Domain Registration Business Insurance
- Define your Domain Registration and hosting Business Brand
- Create your Business Website
- Set up your Business Phone System
Conclusion
Starting a domain flipping business can be a challenging but potentially lucrative venture. It requires a combination of market research, acquisition skills, and sales expertise to be successful.
It is a super flexible online business; you can operate however you want, part-time / full-time, with whatever budget you can afford.
As you sell your domain names, be sure to keep track of your profits and losses to help you better understand the performance of your domain flipping business.
As with other businesses, this business also involves many risks but has good potential to profit, making it an exciting business. All this business calls for is a bit of experience, a discerning eye, and some lucky timing.
Want to Save Time in your Business Launch?
- How to Create a Business Plan
- What is Market Research, USP, Niche & Positioning
- How to find a suitable name for your business
- How to create your brand image (Logo + Branding)
- How to Register Your Business
- How to Register for Taxes
- How to get Licenses / Permits
- How to Open a Business Bank Account
- How to Get Business Insurance
- Which Payment Processing Terminal (POS) to buy
- How to get Funds for your Business
- How to do Sales & Marketing – Offline & Online
- Why have a Website / Blog / Social Media
- How to build & train your Dream Team
- How to provide Excellent Customer Service
- Buying an Old Business Vs Franchisee Vs Own Brand from Scratch
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How to BUY & SELL Domain Names! | The Journey – YT Channel ‘Go Daddy’
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Make $26K Flipping Silly Little Websites? – YT Channel ‘ActiveGrowth’
Useful Website Links
A. Domain flipping is a subjective business, unlike investing in any properties or assets there is no security of profit in near future, no fixed factors to determine profit. However best domains have following features-
• Expired
• Short
• New
• Local
• Keyword-friendly
A. No, hosting is only required if you plan to develop a website on a domain name, which is not the case when it comes to domain flipping so, you can keep the domain for flipping without buying hosting for it.
A. There are some advantages of buying an old or expired domain.
1. You may find some high quality backlinks already present in the domain.
2. Might hold higher authority.
3. They have possibility of having a valuable sales history.
4. If they have a keyword there are good chances that your SEO will be boosted from the very early days of starting the website.
A. Yes, indeed it is a legal business as domain is just like any physical asset that you own such as cars, houses, mobiles etc. the only difference is that its digital but that doesn’t matter at all, as it is still your personal property.
