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Every website name or domain has an extension that used to specify the entity of the organization. For example, .com and .edu. Domain flipping works more or less the same way as real estate. Even though the word has multiple meanings, here, when we talk about domains, we refer to the names given to a website of an organization and nothing else.
In the above analogy, the property is the domain that can be bought and sold. Domain flipping is when you buy a domain at a very cheap rate with the intent of selling it later when there is a demand for it.
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What is Domain Flipping?
Domain flipping is a way of money-making that involves purchasing domain names and reselling these domain names with a significantly higher cost. The key to a successful domain flip is in the right place at the right time in order to procure a valuable domain name before it surcharges.
There are two stages to domain flipping, the buying and selling stages. A user can buy a domain from ‘broker websites’ such as GoDaddy and Flippa. These websites allow users to buy and sell domains. They also provide extensions for domains.
Why are Domains Valuable?
In the world of the Internet, domains are the foundation for us to build our digital presence. And the freedom it provides in terms of choosing your own address is what adds to their value.
Everyone wants custom domain names and are willing to pay any price for one. For a huge number of businesses, the domain is an investment.
How to Start Flipping Domains?
Before you even start flipping domains, understand that a domain is only profitable when you buy it at a low price according to your budget, and flip it to at a profitable margin.
Before you even start flipping domains, we’d request you to start with a relatively low budget of say $5.
To start flipping a domain, first off, you need to find a domain, and it’s similar to finding land. But, before that, you need to understand the niche of the domain you want to buy and flip later.
Consider this to be similar to the area or the locality where you are looking for land to buy at cheap and later flip at a profitable price. On the Internet, though, all you need to do is to understand the category. It can be anything from fitness to a media company name.
The categories are endless, but one advice we’d suggest is to only look for niches that are trending on the Internet.
What follows next is a three-step process to flip domains:
Step 1: Search for Brandable Names
Once you’ve figured out the niche of the domain you want to flip, take a notepad, and write down names of the domains you’d like to flip.
Note: These are a few pointers that could help you narrow down your search:
A. Make sure they are suitable for Branding: People buy domains online to match their business names. Think of it to be similar to naming your child. The name needs to hold a certain meaning. The word(s) must convey the meaning of the website to the potential buyer.
Yes, Elon Musk’s child is an exceptional case.
B. Find Domain names with only one or two meaningful words: Meaning, focus on searching words that are short yet meaningful. The one or two words that you’ve used as a Domain Name must be easy to remember.
Mark certain keywords that’ll help potential buyers find your domain.
C. Focus on trendy or catchy extensions: Find .biz, .com, .co, .co.in, .io, .in(country name), .media, .org, .space, .tech, .xyz domains as they are currently trending and usually work easily with the brand name. Flipping domains with such extensions are a lot easier.
Step 2: Where To Purchase?
Now that you know the domain name(s) that you are looking to flip, all you need is a service that’ll help you acquire it. Down below are three sites that one could refer to while flipping domains.
1. Domain Hole: A website that shows domains that are about to expire in a day or a maximum of 60 days.
2.Namecheap / GoDaddy: One of the most famous domain registrars in the world.
3. Just Dropped: A website that shows domains for sale and has information about how much you can flip a domain for, the value of the niche, the suitability of domains.
One feature where JustDropped is better than the rest is that it allows you to widen your search and to restrict your domain search to multiple options varying from whether it should include a hyphen or numbers or the keywords the domain should include.
Step 3: Where to Sell Your Domains?
This is the last and the final step, where you start flipping domains to the potential buyers.
To find the estimated value of the domain, we use the following sites:
1. EstiBot (Paid): It’s a bot-based estimation tool that allows you to estimate the value of a domain.
2. FreeValuator: As the name suggests, it’s a free tool that allows you to estimate the value of a domain.
We’d suggest for you to prefer FreeValuator as you can get a certified appraisal value for the domain that you wish to flip.
You can use these tools for reference, and if you feel the value is more than what it says, you can completely post it for sale at a higher value.
Below is the list of market places for domain flipping
Well, we hope our guide on flipping domains made it easier for you to understand the process, and we’d suggest you start with an easily available inexpensive domain and start flipping.
Things which will make a Domain Name profitable
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Take short Domain Names.
Short domain names are more convenient and wanted by many people. It promises a significantly higher price if you sell it.
2. Easy to remember
Do not buy domain names that are hard to pronounce or spell. It is also important to pick domain names that are easy to remember. Equally, as a factual world, the easy to reach location is a great and strategic location to start a business.
3. Brandable Domain Names are a safe bet.
A brand-able name is the domain name if you pronounce it then it’ll sound like a certain brand from a product or business. Many people who just started a business or company that launched new products are willing to buy these types of domains no matter how much the price is. It is needed for product advertising.
4. It should contain keywords.
Almost every website owner wants the domain name that contains the keywords that are related to their website’s theme. Because of that, the domain that contains certain keywords will have a great chance to be sold at a jaw-dropping price.
5. Look for popular extensions like “.com”
There are many domains with an extension other than “.com” that have been sold at the staggering price, more than the standard price. If you are new in domain flipping business, then you better look for “.com” extensions because they are undeniably the most popular.
How to find potential Buyers for your domain?
1. Same domain name with a different extension
3. Google search result
What Are The Benefits Of Flipping Domains?
There is no denying that domain flipping has tremendous upside potential, so starting a business in it is appealing. It would help if you thought about it for the following reasons.
Earn additional money
Who among us doesn’t wish to increase their income?
You can:
- Make money while engaging in a side business through domain flipping.
- Manage a profitable business full-time.
It is entirely up to you! Finding, purchasing, and selling domains from the convenience of your home allow you to earn an endless income.
Starting Is Simple
You can begin domain flipping right now. If:
- Access to the internet
- The laptop
- An ATM card…
You may now proceed. There is nothing else needed for domain flipping.
Learning how to value domain names is the most crucial factor. No more prior knowledge is necessary.
The possibilities are endless if you master that expertise.
Low-Risk
The low entrance barrier makes domain flipping a low-risk endeavor.
You can invest a little cash to buy domains and earn money. Your first approach can be to look for good $10–$15 parts to flip.
- This enables you to: Begin with a bit of investment;
- Reduce any danger
- Amass money for future investments.
- Before you make significant investments, get educated.
You can start small with domain flipping and grow as you get experience. Making significant expenditures is only necessary once you are prepared to scale.
Information You Should Have Before Starting Domain Flipping
In comparison to other internet enterprises, domain flipping has many benefits.
There are a few things you should consider, though, before you start.
NOT A Quick Way to Make Money
Patience is a quality of all successful domain flippers.
Only some domains that appear as superb prospects purchase right away. Finding the ideal parts at the pricing requires patience.
On the selling side, patience is also necessary
Your parts will sell most of the time rapidly. Other times, you may need to wait a few months and list your domain before finding severe purchasers.
Domain flipping is not for you if you want to make a quick buck.
It is an active process that needs commitment and drive
To flip domains profitably, follow the tasks below:
- Each domain evaluation is a must.
- Make sure the investment is sound.
You must have drive and commitment to the task at hand. Finding the winner can be challenging. But once you take action, it can indeed pay off.
You’ll Make Errors
The answer is straightforward: You won’t profit from every domain you purchase. It’s entirely acceptable to anticipate making mistakes.
- Every step of the process includes. Determining what went wrong is the most crucial part.
- Study it to gain knowledge.
As you continue to refine your method, be sure it is sound.
Taxes Apply To Your Earned Benefits
Any profits you make must be taxed, just like any other firm.
Trading stocks and domains are comparable. You sell a store when you buy it, and it increases, right?
You can pay taxes on the profit you generate from that sale, but you must declare it.
Quick summary
There are a few things to remember while domain flipping. They are as follows:
- Make sure you invest in a domain that is not a brand name or a trademarked name.
- Make sure you invest in a domain that might have a rise in popularity in the near future as it raises the chances of the domain name being sold. For example, the domain shop.com is a simple name that sold for $200,000
- Try to make the buyer match with your listed price.
- Make sure that you buy the domain name at the lowest possible price and sell it for a higher price. Check for expired domains that might have a good chance of gaining popularity.
- Research about the domain before you invest.
- Try listing your domain name on multiple websites to increase the reach.
- One good domain is better than a hundred bad domains, so be smart while investing in a domain name.
Summary
All in All, these are all the essential things you need to know about domain flipping. At the end of the day, you’ll learn from your experience and will grow.
Also, keep a check on regular conferences and webinars that experts do every now and then. This will give you good expert insight on how to earn millions and enter the big game because this is the future.
