Domain flipping is the process of buying a domain name with a few bucks and selling it above purchased price for a good profit.
Domain Parking is one of the most popular and profitable online businesses that has been existing since the beginning of the internet era.
In this article, I am going to illustrate how to start domain flipping business from scratch and then state the steps to make it profitable.
- Must Read – How to Make Money Using Drones – A Guide
The definition of what is domain flipping is no more restricted to only domain names. Buying and selling websites for profit has become an integral part of it.
In other words, you have to buy a profitable domain name, nourish it to make it a piece of gold and sell it like a big diamond.
In this domain flipping guide, you will get all the strategies you require to pick the best domain names, methods to turn them into gold and how to sell them to make crazy money.
Flipping Domains for Beginners
First, let us see the potential of this business from some recent past transactions.
According to Wikipedia, mi.com was bought by Xiaomi for 3.6 million dollars in 2014, porno.com was sold at 8.8 million dollars in 2014 and something as basic as insurance.com was sold at 35.6 million dollars which is the most expensive domain name ever sold.
Hundreds of domain names are being sold every minute for a huge profit and you can check Flippa-Most Active to get an overall idea.
Now that you see the potential of the business, it is time to know the exact process. Broadly, there are four ways of making money in domain flipping.
#1) Tradition Domain Flipping – One buys a fresh domain name and starts selling it almost immediately through an auction on domain flipping websites.
It helps one to make a quick profit which is five to ten times the purchase price.
If you can write a great sales pitch and show the bidders the potential of the domain name, you can make more easily.
#2) Modern Domain Flipping – Instead of selling a domain name immediately after buying, one can nourish it and sell it when it grows big.
The higher it goes, the more valuable the domain name becomes. Once it reaches a respectable position, you can set it out in an auction and get a very high value.
#3) Make Money With Domain Parking – In this process, one needs to buy an expired domain name or a fresh domain name which gets a lot of direct traffic.
For example, yahoo.com is something that many people type in the web address bar to go to the website. Some people type yaho.com as well by mistake and hence, if you buy a domain name with yaho.com and place some advertisement, you can get some money from page views all over the world.
Similarly, an expired domain name of some repute always gets direct traffic and if you put up some advertisements on the website, you can draw some revenue from them easily.
DomainApps.com – It is a useful website where you can find relevant text that you need to insert in the body of the homepage when you park a domain name.
Then add Google AdSense or other CPV(cost per view) ad segments and earn money from them.
You need to be their paid member and avail domain parking service to park domain names and get benefits from it.
#4) Make Money Flipping Websites – In this process, one needs to put in quite a good labor. But the worth of the labor will be beyond imagination.
You need to buy a niche specific domain name, put up quality articles and stuff related to the niche, get backlinks, make it SEO-friendly to get organic traffic, get a good social media following and then after a year or so, you can sell it to make crazy money online.
Check out Flippa- Website Flipping to get an idea of the money you can make through this process.
The Complete Domain Flipping Tutorial
#1) Different Types of Domain Name Extensions
First things first, you need to understand the type of domain names extensions available. There are basically three categories of domain name extensions.
- Generic Top-Level Domain (gTLD)Extensions – Under this category, .com,.net, .org, .gov, .edu and other such valuable extensions fall. Out of these, .com is the most popular and valuable because it has high SEO value, it can get direct traffic and people type it all the time with any desired domain name.
From domain flipping perspective, .org and .net are not far behind and there are many such domain names with .org and .net that are getting sold at higher price than its corresponding .com version.
You cannot get .gov and .edu unless you have the right to.
- Country Code Top-Level Domain (ccLTD) Extensions – These are country specific extensions like .in for India, .au for Australia and so on.
If .com domain names are not available or .com domain name has become premium domain name with crazy valuation, you can look to buy country code extension domain name and sell it to local players.
It is going to be a worthy buy if you can spot a trending keyword in a country which can be a celebrity, any word of mouth or general meaningful word.
- Modern Top-Level Domain Extensions – Under this category, .info, .cloud, .academy, .actor and many such keywords fall.
If you buy and sell them with a great sales pitch showing the hidden value and purpose, you can make million dollars.
Out of these, .info is in trend now and the trend of domain flipping is slowly shifting towards this category as gTLD extensions are become less or already occupied.
#2) Different Types of Domain Names
There are following types of domain names that you can buy to sell for a profit.
- Creative Domain Name – Creative domain names are those that are your brainchildren. It has to be interesting and addictive.
Contrary to the popular belief that domain names with numbers are not good, domain names with numbers can do wonders in domain flipping business.
Domain names such as 360.com and 24by7.com have made record money.
It is more of a gamble that you must be willing to take. If it hits, it can literally make you a millionaire and if it does not, you get zero return and lose your invested money. Example – scoopwhoop.com.
- SEO Domain Name – If you do not like to gamble and use your money to invest in domain names that literally have the potential to get you more than purchased price, SEO domain names are for you.
You have to do research before buying such domain name. Just like keyword research, you have to find the words that have a huge demand in terms of search and traffic and do permutations and combinations to come up with the ones that are free to be bought. Example – BuyBooks.com
- Popular Domain Name – Popular domain names are the ones that are formed with commonly used words. They are obviously a part of SEO domain names but their values are in millions if spotted correctly.
The most popular ones are the adult words and useful products like insurance, fund, hotels, beer, diamond and likewise.
You will not find direct .com for them like beer.com, instead, you have to brainstorm to come up with innovation names around them such as drinkbeer.com.
You can also make short forms of popular sites like fb.com for Facebook and yp.com for YellowPages were sold for million dollars.
- Expired Domain Name – These are the ones expiring soon and you can buy them directly from the owner or from the domain registrar from where it was bought.
The reason for buying an expired domain name is its hidden potential. Before buying any expired domain name, you have to check its ranking, age, direct traffic, and backlinks.
If you find value and think that you can sell it at a high price than the price at which you are going to buy it, go for it.
Flipping expired domain name has three approaches.
- Buying it and selling it immediately by putting up on auction.
- Putting it up for domain parking and continue the website as it is.
- Add more value before selling it via website flipping process.
- Auctioned Domain Name – These are the ones that are up for auction through domain flipping auction sites (marketplaces) like Flippa.
You will buy them when you think that you are getting them at a very cheap price and you can see the future potential of the domain names.
There are so many instances where domain names are bought from auctions and sold at 100 times its purchased price.
#3) Automated Domain Flipping Tools
Brainstorming or doing permutation and combination and then finding whether the domain names you want are actually available or not could be tiresome.
To ease the process, you can use the following domain name generators to find domain names with a variety of combinations.
NameMesh – The most popular domain name generator that provides lists of domain names based on keywords entered.
It lists available common domain names, similar domain names, SEO domain names, short, funny, interesting ones in separate categories.
Domainr – This tool helps you to find top-level domain names and lists only those available for buying.
Lean Domain Search – It is a specialized tool to search unusual and undiscovered money-making domain names with prefix and suffix combinations.
BustAName – You can do all the possible combinations on one or multiple keywords to find superb domain names.
NameBoy is that tool which will help you discover creative domain name by using rhyming words.
Valuate.com – It is a very useful platform that gives you the estimated value of a domain name. It is useful when you are buying an expired domain name or domain names from auctions. You can try the same of fresh domain names as well.
#4) Running a Domain Flipping Business
Domain flipping has become a successful side business for many organizations and they drive huge revenue from it to invest in their main businesses.
- Domain name portfolio is a collection of domain names that an individual or organization buys to start the domain flipping business.
First, decide how much you want to invest and then divide it into different segments for buying different types of domain name discussed above.
Think of it as an investment and sell them immediately only if you can make a quick profit else nourish them.
At times, you have to renew the domain name annually to hold on to them because the greater the age, the better is the value for domain names.
Note: Never buy a domain name that has a brand name or trademark name. It can be very tempting because you are sure to get huge organic traffic through it. For example, googlephones.info is sure to get a lot of traffic because of its SEO value. But you can face legal consequences as Google is a trademark name and Google can fine you for that.
#5) How to Sell Domain Name on Flippa?
Selling a domain name on Flippa or any other marketplace is the most vital part of domain flipping.
It is same as selling a product to a customer.
You have to show its value to the customers and then the customers would fight among themselves to get it at a mouth-watering price.
There are a few strategies that you have to adapt while selling on Flippa.
- Sales Pitch – The sales pitch decides the actual value a domain name. You have to show its future potential.
An ideal sales pitch should mention:
- SEO value
- Page rank parameters
- Traffic information
- How it can be used
- How its competitors (similar type of domain names) are priced
And anything that would convince a customer that he is buying a diamond ring for the price of a gold ring.
You can visit Flippa.com and check out the sales pitch or seller’s note of most active domain names.
- Traffic and Bid Tricks – Just like search engine result page ranking, you have to be on the first page of active domain names on Flippa.
Hence, you have to do some tricks. Buy a web traffic service and send a few thousands of page views on your Flippa auction page for your domain name.
As the views grow, your domain name will come up on the first page and bidders will crowd with competitive bids.
But the best trick is to make a few fake bids from different accounts to get noticed. When a potential bidder will visit your auction page, he will see that there are some quality high bids and would bookmark you and hopefully send some high bids.
- Estimated Price Certificate (Domain Appraisal) – This can turn your domain name into a real diamond.
If you are confident about a certain domain name you possess because it has high traffic and page rank, you should go for an estimate price certificate.
You can also buy Flippa’s Featured domain name option to get your domain name listed in their featured list and get more attention and high bids.
# Flippa Alternative
Flippa is the best platform for domain flipping for a profit. It is user-friendly and very transparent. But it is quite crowded and it is hard to get noticed unless you spend bucks to get featured.
So, here are some other alternatives – Sedo.com, Godaddy.com, DomainNameSales, eBay, NameJet, and Afternic and are some other popular marketplaces.
DomainNameSales have brokers whom you can hire to sell your domain name by offering them a fixed commission.
# Domain Flipping Scams
There had been multiple domain name scams in the past decade when domain flipping used to take place directly without any third party.
With the marketplaces like Flippa and Sedo, scams are no more a possibility.
The most important thing you have to keep in mind is to buy fresh domain names from popular registrars like NameCheap, GoDaddy, and others so that when transferring the ownership of the domain name, no problems arise.
Similarly, selling domain name directly must be avoided and selling thorough popular marketplaces is always recommended.
The process of selling domain names through marketplaces is very simple. Once you choose the winning bidder, Flippa takes the money from the bidder and keeps it with Escrow service.
Then you have to transfer the ownership through your domain registrar and when the bidder acknowledges and the money gets released. If the bidder does not acknowledge but you have done your part, money will be released upon proper proof.
When the dealing is big, bidder asks for a warranty from the seller so that he does not face any future disputes. A notary is also signed to make the deal official and face legal consequences if situation arises.
Domain flipping is the business that is changing the fortune of many individuals and organizations.
Make flipping a side business and keep on investing your surplus income for a few years and then take a call
We hope you found this article useful and informative as always. Do leave your valuable comments below and don’t forget to share this article with your friends.