What You Need to Know to Start Domain Flipping
Some individuals make a living (or at least a little extra money when they need it) by flipping houses, some do it with furniture, and then there are those who do it with domain names.
Without a doubt, domain flipping can become a rather lucrative company for anyone who puts in a little bit of study, time, and effort, even though it’s still a controversial topic in some circles.
So what does swapping domains actually entail?
The idea behind it is very straightforward: you purchase a domain name at the cheapest price possible, then resale it for a considerably higher price. In reality, you can go months or even years without selling anything, and you probably won’t make as much money as you had hoped to.
But this doesn’t mean it can’t be done; it just means you need to have reasonable expectations and get knowledgeable about domain flipping before you start.
In this article, we’ll discuss the considerations you should make in order to succeed as a “domainer” and the procedures you should follow to flip your first domain.
Do You Need a Starting Budget for Domain Flipping?
Some people can purchase a domain name for $10 and sell it for $100,000. Some people spend $10,000 on a domain name, but they never profit from it. In other words, there isn’t a set answer for how much money you should set aside for domain flipping because anything might happen.
Although it’s generally advised that you start with at least a few hundred dollars and buy multiple domain names, doing so will increase the likelihood that you’ll actually be able to flip one.
Some people can purchase a domain name for $10 and sell it for $100,000. Some people spend $10,000 on a domain name, but they never profit from it. In other words, there isn’t a set answer for how much money you should set aside for domain flipping because anything might happen.
Although it’s generally advised that you start with at least a few hundred dollars and buy multiple domain names, doing so will increase the likelihood that you’ll actually be able to flip one.
Which Domain Types Are Best for Flipping?
Although there isn’t (yet) a secret formula that will give you the ideal domain to flip, there are some domain kinds that might sell more well than others. So, keep an eye out for the following sorts when looking for a domain name to flip.
Expired Domains
Expiring domains, as the name implies, are ones that are now unusable by their owners and are available for sale. What makes them so great? Actually, there are a few things:
- Compared to other domains, they are less expensive.
- They have some DA or PA already.
- They travel by their own means (since they were used at one point or another).
It goes without saying that expired names are the top picks among domain investors.
Even so, if you determine that an expired domain has promise, make sure to research it thoroughly before buying it by looking at its history, ranking, backlinks, traffic, and other crucial factors. After all, there’s a reason why it expired in the first place—possibly because it was used for illicit reasons or because search engines blocked it because of spam.
You can start your search for expired domain names and identify possible flip candidates on the NameSilo Marketplace. You can easily participate in ongoing auctions and place a bid on the names you find intriguing.
Short Domains
If you have any experience buying and/or selling domain names, you’ve probably heard that a name’s value increases with its length. Shorter domains are in high demand among domain investors globally because they are simpler to type, remember, and brand.
However, keep in mind that shorter domain names typically cost more due to their popularity, so if you have a tight budget, you generally shouldn’t be pursuing them.
Local Domains
Locally specialized domains (those ending in .UK, .DE, and similar extensions) can offer fantastic flipping possibilities for you that you don’t want to miss out on, in addition to expired and short domain names.
They are valuable enough for you to sell them for a fair price (people prefer websites that target their country), and they are niche enough for you to avoid a lot of competition and a large number of potential customers.
New Domains
Unbelievable as it may seem, you can also profit from new domain names. You can later sell that domain for a sizable sum of money if you seize the opportunity presented by a new good or service and get the name before anybody else does. The idea is to identify the value of the domain early, purchase it for a bargain, and then resell it for a higher profit.
How to Flip a Domain Name in 5 Easy Steps
Let’s assume that you are prepared to flip your very first domain and are ready to start. What actions should you take to get there?
#1 Locate a valuable available domain to purchase
It goes without saying that you must first acquire a domain in order to resell one. But you don’t want just any domain; you want one that is inexpensive now but can be sold for a lot more in the future.
You can accomplish this in a few different ways:
- Check out the domain names that are now for sale or have just been sold by going to a directory or a marketplace.
- Search for expired domain names on those same websites.
- Utilize Google Trends to research potential domain names with a higher likelihood of being lucrative in the future.
It can take you days or longer to identify domain names that are worthwhile buying, so don’t expect to find them immediately. You’ll need to do your research thoroughly. Not to mention that many of them most likely won’t even be offered for sale.
If you come across an expired domain that you like, you can also try domain drop catching or domain sniping. You have to wait until a domain name has completely expired before registering it yourself. A domain enters a Redemption Grace Period (RGP) when it expires, allowing the owner to regain it (this period typically lasts between 30 and 90 days). If they fail to do so for whatever reason, the domain becomes available for registration by anyone else (in this example, you).
#2 Evaluate the Domain You Want to Flip
You should assess the domain you prefer and that is offered for purchase to determine whether it is worthwhile buying. The following variables influence a domain’s value:
Length: Shorter items are more valued. Just like that.
Brandability: An item’s value will increase if it is simple to brand it. Brandable names aren’t just brief; they’re also frequently distinctive and memorable.
Extensions: It will be more pertinent if it ends in .COM (or a regional TLD).
Keywords: Domain names have more value when they contain broad, well-known keywords.
The most crucial thing in this situation is to conduct thorough investigation without rushing. Examine how comparable domains have been valued before using that information to decide whether or not your own domain is suitable for a sale. You can always ask a qualified appraiser to perform it for you if you’re hesitant.
#3 Obtain a New Domain Name
You can register your domain with a domain provider if your study demonstrates that it is valuable enough and has no questionable history. Generally speaking, the entire procedure is simple and doesn’t take too long.
Make sure your domain registrar is reputable and someone you can trust before giving them control of your new domain. At NameSilo, we can assist you with both the easy and hassle-free registration of your domain name as well as the eventual sale of that domain name when the time comes.
Once your domain name has been registered, you have two options: park it to generate some extra money while you wait for the appropriate buyer to come along, or start contacting potential buyers.
#4 Find a Buyer for the Domain
Here’s when things start to get a little complicated. You need to discover someone who will pay more for the same domain that you did initially, as we said in the opening section of the book.
And that’s not a simple job.
You have a few choices when it comes to seeking a purchaser for your domain names:
Make a landing page—Inform everyone that you are selling, include your basic contact information (which can be found on the page) and wait for customers to approach you. If you don’t want to deal directly with your customers, this may take a little longer than you’d want, but it’s the wisest course of action.
The most popular strategy that practically all domainers do is to list their domain on a marketplace. Be careful to go through their policies and costs before picking which marketplace you want to work with because there may be details that could complicate matters, and you don’t want that in the long run.
Make your WHOIS information public — In most circumstances, it’s advised to keep your contact information private and out of the internet WHOIS database. However, if you wish to sell your domain, you’ll need to turn off WHOIS privacy and make your information public.
Reach out to your customers directly – For example, if you have a domain linked to cooking, you should try to sell it to restaurant owners. Any specialty you pursue is the same. You can even use several directories, like YellowPages, to focus your search and contact potential customers.
Summary
Professional domain flippers are typically those who have made the decision to turn their hobby into their full-time job and have dozens or hundreds of domain names at their fingertips. They also have years of expertise, which helps them move through this process more quickly and identify which domain is useful and which is not in a split second.
If you’re just getting started, be careful not to make hasty decisions, and start out modest by setting a tight budget and selling just one or two domains. Watch how that goes, make note of your errors, and tweak your strategy. If you persevere, you’ll eventually be able to turn a meaningful profit from domain flipping and perhaps even turn it into a career.
Source: NameSilo
