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Heard someone saying that, “domain flipping is profitable” and want to know the reality about it? Then you have landed on the right page.
But before learning about how lucrative it is, you should know what exactly is domain flipping?
What is domain flipping?
As the name suggests it is the process of flipping (buying & selling) domains.
It is the practice of buying a domain name at its lowest price possible with an intention to sell it to another party at a higher price to make a profit.
But what is a domain name and why someone would buy or sell it?
Let’s take a look,
Domain flipping – still lucrative or not?
In a world ruled by the Internet and computers, domain flipping can be extremely lucrative.
But keep in mind, being new in this is not easy. It is not something that will give you immediate returns.
It is a good option to be chosen as a side hustle. Once you get experienced and confident in your flipping skills, then you can switch over to it as your main business if you want.
It requires a lot of practice and expertise to be a successful domain flipper.
Being a beginner, you probably cannot buy domains for thousands of dollars. As a matter of fact, you actually do not need thousands of dollars as a beginner to make a profit.
Just like any other business, it is advisable to start with a smaller investment. The best part is that you can start even with just $10.
The fact is that in a world dancing over the internet, a domain name is something for which a company or a business person is ready to pay any amount if that domain is capable of bringing him/her huge profits in the future.
You can potentially make unlimited income finding and flipping domains—all from the comfort of your own home.
Once you get a solid system in place, the sky’s the limit. A full-time domain flipping business can generate upwards of $100,000+ per year. If you are just doing domain flipping part-time, you can expect to make $200 – $500 per month easily.
After learning that domain flipping is extremely profitable and not out of fashion, you would like to know how to get your hands on it and be a professional in it as soon as possible. Don’t worry, we got you covered.
Things you need to start flipping domains—
- An internet connection
- A laptop, PC, or Mac (Smartphone/Tablets would do just fine)
- A credit card
Now, before we dive into the process of domain flipping, you must be wondering that a business that is capable of bringing you unlimited wealth is not likely to be legal.
So, let it be the next point.
Domain flipping – legal or illegal?
Domain flipping is completely legal.
Remember, domains that have been trademarked or copyrighted cannot be bought and sold. Also, you need to be aware of your country’s tax requirements.
Any profits you make from domain flipping may be taxable.
With that out of the way, let’s dive deep into the process of domain flipping…
How to start domain flipping?
To start domain flipping, the following steps are to be followed:
Step 1. Search for a domain name
To sell a domain, first, you need to buy one.
There are inestimable domains available to buy. So to find the one which is cheap as well as capable of making a profit can be a little difficult.
Keep these points in mind while searching:
- Narrow your focus: It is much easier to sell a domain you know would be valuable to someone in a particular industry (or niche).
Remember to focus on the areas you know well and you will be much more successful than buying and selling domains you think would benefit someone in an industry you know little about.
- Find names that can be a valuable asset for the buyer: No matter physical or digital, an asset is bought only if it offers real value.
Once you boundary your focus, you need to know what kind of names are preferred by the people in that particular industry.
You need to possess a bit of distance sight, like what sort of names will be in demand in near future. And as we all know, what is in demand can be sold for a much higher price.
Let’s understand the importance of domain names through an example:-
With the world becoming digital day by day, companies have and are building many platforms like VR, Metaverse, NFTs, Earth2, etc.
If you were to register the domain “meta.com” as soon as the term “metaverse” came to your knowledge, you would have become a millionaire, if not a billionaire selling just that one domain.
Confused? Let me clear the confusion.
Facebook Inc., owned by Mark Zuckerberg, is changing its name to Meta, and they already have registered the domain meta.com for that.
Now, think about it, if you had registered this domain way earlier than Facebook, you could have asked any amount from Facebook to sell it to them.
- Check domain availability: You need to check if the names that you are looking for are available to buy as new registrations.
If this happens to you then trust me, you are today’s Alladin who has found his Genie. In case no one owns a domain name, you can immediately buy it.
But if the names are taken (as many probably will be), head over to the aftermarket or auction platoforms to buy from people who already own the names or who let them expire because they no longer plan on using them.
Sites that provide you such service are:
- GoDaddy Auctions – https://in.auctions.godaddy.com/
- NameCheap – https://www.namecheap.com/
- DomCop – https://www.domcop.com/
- NameJet – https://www.namejet.com/
Step 2. Evaluate the domain name
Once your search for the desired name is over, then it’s time to evaluate it.
Evaluation is to be done on the downlisted factors:
- Brandability –
Easy to remember
Often less than 10 characters
Unique and distinctive
- Search-Friendly –
The domain name should contain a keyword
The keyword should have over 200 searches per month
For instance, if you search for ‘food’, you will get to see such results along with their price, renewals, etc. These results are to be evaluated by you based on your needs.
Step 3. Register the domain name
Once you are done with the evaluation and satisfied with the reports, do not waste time. Buy it and register it before someone else takes the chance.
This step is comparatively simple. When you purchase the domain, the service you used to buy the domain from will provide you with the registrar where the domain is hosted.
They will require you to provide your registrar so they can transfer the domain.
Some of the famous and reliable domain registrars are:
- GoDaddy – http://www.godaddy.com/
- NameCheap – https://www.namecheap.com/
- Domain.com – https://www.domain.com/
After finding the best domain as per your wants, click on “Add to cart“.
Checkout from there to make payment and the domain selected by you will be registered in your name.
Step 4. Find the right buyer for the domain
As you want to do domain flipping, you will not just buy a domain and relax. You need to find the right buyer for it.
Who is the right buyer?
The right buyer is someone who understands the true value of your domain and is ready to pay it as well.
There are three ways to sell your domain for profit –
List your domain at an auction
This is the fastest method of selling your domain.
You simply list your domain on a domain name auction platform. Auctions usually go for 30 days or more and interested buyers can bid on your auction.
The domain at auction method is a great way to get lots of interested buyers.
Buy and hold
This method is the slow way of selling domains. But can yield a bigger return.
You buy the domain and hold onto it, waiting for it to increase in value and for someone to actively find you.
Create your own marketplace
If you want to make your career in domain flipping, then this is the best option to take your business to great heights.
You can create a small marketplace and list all of your domains for sale there.
The key to making your marketplace successful is curating a portfolio of valuable domain names. You don’t just want to offer one domain. You’ll need to build a bigger portfolio of domains.
As you are undertaking domain flipping as a business and not just for fun, you will need to –
- Build a brand.
- Establish yourself as a trusted provider of quality domain names.
Step 5. Sell the domain
The final step! It’s time to collect payment and transfer the domain to the new owner.
Do not hurry at this step. Domain fraud and stealing happen more than you think.
A little bit of carelessness can shatter all you efforts you made till now. So, be cautious and make sure to—
- Protect yourself, and
- Ensure a smooth transaction
To ensure these two things, you should use an escrow service (broker).
What an escrow service will do?
- The buyer will pay the escrow service.
- When the escrow service receives payment, they will send you a notification to transfer the domain.
- Once the domain has been received the escrow service pays you the money.
And you are done!
If you want to establish yourself as a successful domain flipper then keep one thing in mind that you don’t have to rush in and buy every single domain that seems like a good opportunity.
You need to have the patience to find the right domains at the right price.
Final Thoughts
That’s all. I served you with all the possible information about domain flipping and its profitability.
So, if you found this information useful and worth knowing then do share it with the people who might be searching for the same.
