What is domain flipping?
Domain flipping is the practice of buying and selling domain names (in the short or middle term) with the intent of profiting from their resale value. If you want to hold awesome domain for long term you will be more likely called “domain investor”.
Domain flipping has been around since the early days of the internet, but it has become much more popular in recent years thanks to the availability of online tools that make it easier than ever to find and purchase domains.
In this guide, we’ll explain everything you need to know about domain flipping, from how to find good domains to sell to how to negotiate deals with buyers.
We’ll also cover some advanced topics such as how to use SEO. So whether you’re just starting out in domain flipping/website flipping or you’re looking for ways to take your full time profitable business to the next level, this guide will teach you everything you need to know.
Domain flipping compared to Real estate
The domain names business model looks similar with real estate businesses in several areas. There are enduser brokers and consultants as well as domain flippers/domainers.
Domain flipping is similar to selling a house or renovating a place (sometimes sitting on one). What does that tell you? It’s like: you buy the url to make the money worth what you paid for it. It is true, it’s your pay.
And we move forward. It’s no secret that domain names can earn hundreds of dollars if sold for several hundred dollars each. Domains can be sold for as high as a million.
How much does domain flipping cost?
Domain flipping can be a lucrative business venture, but it does require an initial investment to get started. Domain names typically cost around $10-15 per year, depending on a domain name provider and extension you choose.
In addition, you may also want to invest in some online tools that make domain flipping easier, such as a domain broker, auction site, Search engine optimization tools or specialized tools.
These tools can help you find good domains to flip and negotiate deals with buyers. However the price of them might be high. These tools can range from free to a few hundred dollars (typically monthly subscription), depending on what you’re looking for.
That said, you don’t necessarily need to invest in any of these tools if you’re just starting out – many successful domain flippers have made money simply by buying and selling domains without investing in any additional.
So how much does it cost to start flipping domains? In total, you could expect to spend anywhere from $50-200 per month to get started Domain flipping can be a lucrative business venture, but it does require an initial investment to get started.
How much can you earn with domain flipping?
Several domain names are selling for a fortune like toys.com and slots.com. The market for the highly demanded domain is likely to grow in popularity, which means the price is higher for the domain that can make big profits in the future.
Those who sell domain names for $100 can make 90 dollars in profits. Success is 10x the amount you have earned. It is fair to mention that there were many of domains sold hundreds of thousands of dollar.
In general, you could expect to earn anywhere from $50-500 per domain you flip. However, the amount of money you can make depends on several factors such as the demand for the domain name, its length and type (e.g., .com or .net), and how much time it takes to sell. Domain flipping is a business, and like any business, it takes time and effort to make money.
A second point you should keep in mind is that you will purchase domains that are not sold, and it only represents the expense of being the domain flipper in your field. Parttime Flippers can make between $5,000 and $8000 annually converting domain names. Fulltime flipper income is estimated at approximately $100,000 to $30 million yearly.
Real our article about 50 most expensive domains sales in history
The best way how to find valuable domain name
Godaddy auctions
Domain name auctions are a great way to snag a catchy, brandable domain for your website or next big project (or start with domain flipping instead).
And with GoDaddy’s large inventory of expiring and expired domains, there’s sure to be something that catches your eye. But before you jump in and start bidding, there are a few things you should know about how domain auctions work.
To start, all bids placed on an auctioned domain are completely sealed – meaning that neither you nor any other bidder will know what others are bidding. This ensures that the auction is as fair as possible. Once the auction ends, the highest bidder will be notified and have 5 days to pay for the domain. If they don’t, the second highest bidder will be given the chance to purchase the domain.
So if you’re looking to snag a great domain name at a reasonable price, keep an eye on GoDaddy’s auctions – you never know what you might find.
Expired domain names
When a domain name expires, it becomes available for anyone to register. This can be a boon for businesses that are looking for a domain flipping opportunity However, there are also potential risks associated with registering an expired domain name.
For one thing, the previous owner may have allowed the domain to lapse due to issues such as trademark infringement or cybersquatting. As a result, the new owner may find themselves embroiled in legal proceedings.
Additionally, expired domains may also be associated with spam or other malicious activity. As such, it is important to do your research before registering an expired domain name. By taking the time to evaluate the risks and benefits, you can make an informed decision about whether an expired domain is right for domain flipping.
Some of services that provide expired domain names:
Domain name backorder
Probably the best way how start with domain flipping. A domain backorder (or domain drop-catching) is a service that allows you to register a domain name that is already taken.
The current owner of the domain may let it expire, or they may simply forget to renew it. That is the moment where flipping domains starts being interesting! When this happens, the domain becomes available for anyone to register. However, since there is high demand for popular domains, the process of registering them can be very competitive.
This is where a domain backorder comes in. By placing a backorder, you ensure that you will be first in line to register the domain when it becomes available. This can give you a significant advantage over other potential buyers.
Domain backordering services are provided by many different companies, and they typically charge a small fee ($59 dollars for Dropcatch.com, $79 for Snapnames). However, the cost is typically very low compared to the value of the domain itself. As such, domain backordering can be an excellent way to secure the perfect domain for your website.
The best backorder services:
How to start with domain flipping step by step?
Let me list some tips how to start with domain flipping step by step.
STEP #1: Do general research of domain market
Research Keywords
Getting the information you need before domain flipping is important in making the right decision. Keyword Planner can help anyone learn the most famous keywords around.
You could even combine your keyword analysis into an automated domain name database such as NameBio. Name Bio lets you input your searches and find related domain names.
When you do research, do not overlook your local area. Think how many users search “New York’s pizza” every day. What an amazing opportunity a local pizza shop can have.
Research similar domain names
While trademarks should be avoided, you may want to consider using non-trademark domains whose name is identical to a trademark. After all, the Farm Bureaus had already been successful at flipping FB.com for $8.5million which makes it the highest-priced domain sales in history.
When you work for an employer you must avoid purchasing domains related to competitors brand. It can also be regarded as buying domains in bad faith and this can cause legal problems.
Prioritize Memorable Domains
Usually the best selling domains for sale include a name which has been well-remembered and simple to type. Some best domain names have short words and commonly used acronyms.
Occasionally a domain holder will check the traffic that a domain had during the previous period. Domains with many links can also be advantageous because this can help the business to improve their SEO strategy. While you should buy brandable domain names, avoid buying trademark names.
Search for a domain name
First you have to search for domains that have been bought as an investment. It’s a good way of searching for domains like Google’s Domain Manager and Yahoo’s Domain Manager. Find cheap name brands related maybe directly to specific topics, items or locations. You may also look on eBay and auction websites for domains for sale and check expired domain titles for domain flipping.
STEP #2: Find domain names and consider their value
When appraisal domain names, professionals take many factors into account including the length of the domain name, the number of characters, the type of extension, the age of the domain name, and any previous owner history.
Additionally, they’ll also consider the overall marketability of the domain name and how likely it is to be sold in the future. Based on all of these factors, pros can give you a good estimate of what your domain name might be worth.
Tools for estimating the value of domain name
It’s important to remember that appraisal value is not always the same as market value – appraisal value is simply an estimation based on a set of criteria. If you’re looking to sell your domain name, appraisal value can give you a good starting point for negotiation.
Godaddy appraisal tool
The GoDaddy Appraisal tool is a quick and easy way to get an estimate of the value of your website. Simply enter your domain name and some basic information about your site, and the appraisal tool will generate a report with an estimated value.
The report also includes data on recent sales of similar domains, so you can see how your site stacks up in the marketplace. Whether you’re looking to sell your website or just curious about its worth, the GoDaddy Appraisal tool is a great place to start.
Estibot
Estibot is a web-based tool that helps users assess the value of domain names and websites. The tool uses data from a variety of sources, including search engine results, popular auction sites, and web traffic statistics.
Estibot also takes into account the age of a domain name and its extension when determining its value. Based on this information, Estibot provides users with an estimate of the worth of a domain name or website.
While Estibot is not perfect, it can be a helpful tool for those looking to buy or sell websites and domain names.
Tools for analyzing SEO potential of domain name
It is also important to consider the SEO value of the domain name you are flipping. Domain names can have an impact on the ranking of websites in search engine results, so it is important to understand how your domain name will affect your website’s visibility.
You can use tools like Semrush or Ahrefs to analyze the search engines potential of a domain name. These tools can help you assess factors such as Domain Authority, Domain Rating, and backlinks.
Semrush
Semrush is a powerful research tool that can help you find valuable domain names.
By using Semrush, you can see what keywords they are targeting, what ads they are running, and what content is performing well for them.
You can also use Semrush to spy on your own website and see where you need to improve. With Semrush, you can track your progress and make sure you’re always one step ahead of your competition.
Ahrefs
Ahrefs is one of the most popular Search engine optimization analysis tools on the market.
It offers a comprehensive suite of features, including keyword research, backlink analysis, rank tracking, and more. However, what sets Ahrefs apart from its competitors is its ability to provide detailed insights into competitor strategies.
With Ahrefs, you can see which keywords your competitors are targeting, what kind of content they’re creating, and what links they’re building. This information can be invaluable in developing your own SEO strategy.
In addition to its competitive intelligence capabilities, Ahrefs is also an excellent all-around SEO tool. Its keyword research features are second to none, and its rank tracking capabilities are extremely accurate. Overall, Ahrefs is an incredibly powerful tool that helps you analyze search engines.
STEP #3: Buy domain name
You can try to use our recommended channels such as Godaddy auctions, Domain backorders or Expired domain names. Or you can try more conservative ways of buying domain names.
There are many ways how to buy domain names. Many Domain registrars (like GoDaddy, Namecheap, Domain.com) offer domain name registration services and you just need to search for the right one according to your needs.
You can also purchase Domain names from Domain marketplaces like Flippa or Sedo. These platforms allow you to bid on Domain names that are already registered, so you can get Domain names for cheaper prices than Domain registrars.
The most popular domain name registrars:
- GoDaddy
- Namecheap
- Porkbun
- Network Solutions
- Hostgator
- Bliuehost
The most popular domain name marketplaces:
- Flippa
- Afternic
- Brandbucket
- Sedo
- Brandpa
- Godaddy auctions
STEP #4: Find a buyer
When it comes to domain names, there are a lot of options available for those interested inselling them. There are a few key marketplaces that come to mind when thinking about the best place to sell domain names.
Afternic
One such marketplaceand is a popular option for many reasons.
Firstly, they have a very user-friendly interface that makes it easy to list and manage your domain names. They alsohave a large network of potential buyers, which increases the chances of aconsiderable sale.
Sedo
They offer a wide range of services to help you get the most out of your domain name sale. This includes appraisals, escrow services, and listing tools.
If you’re serious about selling your domain name, Sedo is definitely worth checking out.
Flippa
Another excellent option for those looking to sell their domain name. They have a massive audience of potential buyers, making it likely that you’ll be able to get a good price for your domain name.
They also offer a variety of helpful resources to help you through the listing and selling process. Whichever marketplace you choose, be sure to do your research to ensure that you’re getting the best possible deal on your domain name.
What if I want to sell a domain name directly by myself?
Escrow.com
Escrow.com is a website that provides escrow services for online transactions. It holds the buyer’s money in trust until the seller has delivered the goods or services, at which point the buyer’s payment is released to the seller.
This system protects buyers from fraud by ensuring that they only pay for items that they have received, and it also protects sellers by ensuring that they are paid for their items.
Escrow.com offers a variety of different services, including auction escrow, real estate escrow, and ecommerce escrow. The website is easy to use and offers a secure way to complete online transactions.
Flipping domains or websites?
There’s a big difference between a domain and a site flip. This focuses primarily on purchasing or selling full sites. I mean a website which has a lot of information. When selling a website, Domain Name is much less important. The primary value is the content, traffic, revenues, their reputation, sustainable and growth possibilities. The same is not true for Domain Names, in the sense that the name you sell is what matters the most. This post focuses specifically on domain flips.
The most important TIP ever for domain flipping!
Start small
Do you think the cost of domain names can exceed $500? It takes only some experience to understand domain switching and how to predict its value which is important for all investors.
Make a budget before you begin to start. So spend some time looking at what’s available. Don’t buy domains that seem so attractive because they may be emotionally attached to names that have little or no relevance at the moment. Make sure that all possible sales and purchases are listed before you start shopping.
Final thoughts:
Domain flipping can be a lucrative business, but it’s important to do your research before you buy or sell a domain name. In general seccussful domain flippers make bunch of money.
In flipping domains It is always important to understand the value of the domain name and how to create a landing page that will help drive traffic to your site. Always remember to avoid any legal trouble by not using trademarked names in your Domain Names.
FAQ:
Is domain Flipping still profitable?
Are e-commerce websites profitable? Domain flip is definitely very profitable. Eventually you can earn more money by using this strategy and focusing on a particular niche.
It may be possible to turn domains to full time but it requires a lot of patience as well. It should all be done in a good manner if it is the best way for a business to prosper.
You can purchase domains for 3 digits then sell them for four – five digits. That’s why this business is profitable.
Is buying and selling domain names legal?
Yeah! It’s okay if we sell and buy domains for a high profit. Some domain-flippers make full-time earnings from selling domains. If you buy domains which have obviously repercussions on your current business, you will face no legal difficulties.
I can purchase an existing domain name despite being affected by the UDRP law if Apple does not renew it. In the end, you should avoid legal trouble, as long as you’re never going to use domain names which are clearly copied by others.
Are there any risks connected to domain flipping?
Does someone make their living by selling domain names? Okay, completely. However, there are risks to expectations as well as mindsets. How many different websites are selling for ridiculously low prices? Million.
So those expensive domain names seem logical exceptions to the rules rather than a rule. So, you need a good attitude before starting to flip domains. Don’t be afraid to sell your domains for millions over night for free! It is very devastating for domain flipper companies in any sector and virtually everywhere else.