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How to Make Money Online With Domain Flipping
You might have wasted countless nights researching different ways to make money online. The internet is a blessing and a curse. While it’s great to have endless amounts of information available at your fingertips, how do you sift through the scams and find the valuable material out there?
Are you knee-deep in your seemingly endless journey? Domain flipping might be what you are looking for.
Unbeknownst to me, this industry can be quite the cash cow. According to Dofo, in September 2020 alone, over 80 domain names sold for over $10,000, with the most expensive at $720,000.
Coming across these numbers, you must be asking yourself – how do I get started?
Here is my domain flipping guide to get started.
What Is Domain Flipping?
Most people are familiar with the term flipping when it comes to real estate, but in fact, flipping in its simplest form is the act of purchasing any asset with the intent to sell for a quick profit.
In that sense, domain flipping is not much different than real estate. Simply put, you buy domains at the lowest prices available and sell them for a profit.
What Is a Domain?
Every computer has a unique IP address attached to it to maintain its identity. The internet created a need for websites also to have unique identifying characteristics. Instead of having to memorize endless combinations of meaningless numbers like IP addresses, domains were created.
A domain name, or domain, is the unique identifying address provided by a website that appears in the browser URL. In sticking with the real estate simile, a website’s domain name would be the equivalent of a street address to a real estate property.
How to Buy a Domain?
Before purchasing, it is essential first to do your research to see domain names for sale. You can access NameCheap to check the availability of a domain name for free. After that, you can move forward with the purchase.
How to Buy a Domain if It Is Available?
Having an available domain is the ideal situation, but it is not always the case, as you can imagine. But, if you find strong domain names for sale, you can and absolutely should purchase them directly from the NameCheap right away.
How to Buy a Domain if It Is Not Available?
Although not the ideal situation, the good news is that even if the domain is not immediately available, you still have options to purchase. If you find that the domain name you are looking for isn’t available, you can hire a broker service at a charge to see if you can strategize a way to obtain the domain. Otherwise, the NameCheap will give you other similar domain names that are still available for purchase.
Purchase and sell. It seems easy enough, right? That doesn’t go without saying there is a ton of work that goes into building a successful domain flipping business. While not everyone is made for the industry, many have found bountiful success. Nothing is stopping you from finding out if you fit the mold.
How Much Can I Make Domain Flipping?
As domain flipping is a business, the ultimate goal is to turn over a profit while doing it. Much like real estate, there are times it can feel a bit like a gambling game. But, with proper market research, you can turn domain flipping into a full-time career.
What Are the Top Domain Name Sales?
While you might not necessarily see a sale of your domains reach these numbers, it is crucial to grasp the potential value out there altogether. Here are the top 5 most expensive domain names in public history:
- CarInsurance.com – $49.7 million
- Insurance.com – $35.6 million
- VacationRentals.com – $35 million
- PrivateJet.com – $30.18 million
- Voice.com – $30 million
If you happen to buy domains at a minimal price that sells for a number like these, it goes without saying that you have chosen the right career path. If not, don’t be discouraged. Domain flipping is a numbers game. Small domains for sale add up too, and as you grow your knowledge base, you will continue to see your profit margins growing. What is essential for you to keep in mind is that the sky’s the limit.
How Does Domain Flipping Work?
So now that you’ve got a little bit of background into domain flipping, you must be wondering how it all works. Here are five easy steps to follow if you want to get started:
Step 1: Search Your Domain
To make the most cash from domain flipping, you want to have the highest possible profit margin. Ideally, you will want to find domain names for sale that are inexpensive upfront and have the highest selling potential.
There are endless resources available online, including the Dofo Monthly Domain Industry Reports that even provide metrics surrounding top keywords of domain registrations, extensions, countries, etc. Industry reports could be an excellent place to begin some of your research.
Step 2: Evaluate Your Domain
Of course, at some point, you will be asking yourself how much is my domain worth? When determining the value of your selected domain, you want to ask yourself a few questions:
- How long is your domain?
- How easy would it be for a potential buyer to brand?
- How relevant is your domain?
- How easily can your domain be searched?
You want to be sure to cover all of your bases when doing your research and before purchasing your domain so that you can adequately determine the market value and the maximum price you are willing to pay for your domain.
Step 3: Register Your Domain
Once you have completed your research, you will proceed to buy your domains. Your domain names’ actual registration should be a quick and painless process.
Step 4: Find a Buyer Interested in Your Domain
Finding a buyer tends to be the trickiest step in domain flipping. Again, with your market research, you will determine the best course of action to take in the selling process. Whether you want to take a more laid back approach, buy-and-hold strategy, or a more aggressive approach, create a landing page for potential buyers, you will need to market the best way suited for your target audience.
Step 5: Sell Your Domain
Just as your purchase of the domain name initially was a relatively straightforward process, the transfer of ownership from you to your buyer should be the same.
Everyone you talk to about domain flipping will have their input, but we have found that following these five steps is the simplest way to get your feet off the ground.
What Are the Top Strategies for Domain Flipping?
Just like in any industry, there are secrets to being successful. Don’t worry about sifting through the countless pages of information on domain flipping strategies. Here are the top five:
1. Find Your Niche
When starting an online business, it is vital to niche down to a target audience. Domain flipping is no different. Think about some topics you are already familiar with and look for domain names and extensions relating to that field. In the end, when you are ready to sell, you will have an easier time selling something with which you are more familiar.
2. Find Your Value
Since you are picking an area you have some knowledge in, consider how you can make your domain name valuable to your seller. Put yourself in their shoes – why would you need this domain name and not any of the other hundreds that are similar and available for a nominal price.
3. Find Your Availability
Reference the NameCheap to see a list of domain names for sale. Don’t get discouraged if they are not. You still can either buy domains from the owner or wait for it to expire and grab it then.
4. Find Your Price Point
There are multiple sites available to do some market research, but check out Namebio to compare prices of similar domains for sale.
5. Find Your Right Exposure
When you are getting ready to sell your domain, make sure you do the proper research to determine that you are using the best-suited venue for your sale. Utilizing a trusted brand is crucial to your domain’s final sale in building confidence in both yours and the buyers’ end.
Much like getting your feet off the ground, there is a wide variety of available strategies out there. Find what works best for you, but be sure to keep these five things in mind as you enter into the domain flipping world.
Where Can You Sell Your Domain Names?
Another significant aspect of domain flipping is the access to resources available to run your online business at your fingertips. Included in this list would be the options you have in selling your domain name. As you get into domain flipping, you will see the following:
Although this does not happen all that frequently, it is a possibility that a potential buyer would reach out to you to buy domains directly from you. Like you accessed the tools to see if your domain name is available, buyers will do the same and see your information. They will reach out to you directly to negotiate your domains for sale.
One crucial thing to note is that you must not have any of your WHOIS information private to have this be an option for you. Some people do not like having their information completely public, but potential sellers will not have the opportunity to reach out to you directly without this information. I recommend keeping your email address public in this forum to keep this option open always.
If you are like most domain flippers out there, you will likely not have an abundance of sellers reaching out to you to negotiate sales. Not to worry – you still have many different reliable sources available to you. The same places you go to research and buy domains for yourself will be your tools in turning around and selling them. Some of them include:
- Namecheap Marketplace
- eBay Marketplace
Online Domain Forums
If you want to look even further than the leading marketplaces, there are still even more reliable options out there for you. Here are some forums you can look into as well:
- NamePros Forums
As you begin to develop your niche, you will also start to hone in on your target market buyers. The approach will be different for everyone, and possibly every other domain name you purchase. Make sure that your marketing plan is best suited for your audience and if all else fails, try out different methods if your go-to doesn’t seem to be doing the trick.
Is Domain Flipping Legal?
Domain flipping has always been and continues to be a completely legal practice. Keeping that in mind, there are a few legal situations you want to be mindful of when deciding to delve into this world.
- If you are a buyer, does the seller have the legal rights to sell?
- If you are a buyer, does the seller have the ability to transfer the domain?
- Is there anyone else out there who will want to fight you over the domain?
Most domain names sales go without any glitches, but much like many other things, the legal side only arises when issues arise. As always, make sure to cover all of your bases. Be confident in the sites you are utilizing for your domains’ purchases and sales, and you should not experience any issues.
Is Domain Flipping Right for You?
So, undoubtedly you can see the potential benefits domain flipping has to offer, but you might be wondering, is domain flipping the right fit for you? Yes, there is an element of gambling in it, but the potential reward is undeniable. Just like most things, it is a numbers game.
Everyone is most worried about job stability when starting an online business. Rest assured, as we can all safely assume the internet is not going anywhere, we can guarantee its continued growth. This includes the demand for more online businesses that will be demanding specific domain names for sale.
Do your homework. Do some research. Find a niche that interests you and figure out some domains that will become irresistible. You are your first resource in conducting the research needed in building a business out of domain flipping. The opportunities are out there, and you’ve been encouraged to find them. Now it is up to you to put this to action.