Flipping domains can be an endeavor that pays off very well. For instance, in 2015, Chinese brand Qihoo paid $17 million for the domain 360.com. Additionally, it is said that the most expensive domain ever sold was Cars.com for a stunning total of $872 million.
Hence, buying a domain or a set of domains with the aim of reselling them at a higher price is a practice many have made good money from.
Some predict what domains will become popular, some go and buy domains that are not yet very expensive, and some hunt expired domains (dropped domains) that were previously registered by a person or company that was not renewed before the expiration date.
If you want to know how you can get a piece of this profitable cake, take a look below.
First, what is a domain name?
A domain or a domain name is your website’s name. Domains always have an extension such as .com, .org, .net, and so on.
A website’s domain name is a string of text that maps to a numeric IP address which is used to access a website from client software. This text is typed into a browser window to reach a particular website.
For example, the domain for YouTube is YouTube.com.
Domain names are managed by domain registries that delegate the reservation of domain names to registrars.
Step 1: Look for a promising domain
This is the first step and one of the most important ones. You have to start looking for a domain that is worth buying. If you want to make a lot of money, you should optimize your efforts by finding a domain that has a high selling potential.
Many people that are flipping domains use various domain name search services to scout for initial domains. Some of these are free to use, while some require you to make a payment.
Also, it is possible to attend a domain auction where you can see a list of many domains currently being offered for sale.
Step 2: Evaluate
Once you set your eyes on a domain, first check if you can actually purchase it by looking at your budget.
Then, take some time to evaluate it. Keep in mind that there are a few factors that impact the potential value of a domain:
- Search engine friendliness
It is necessary to do some independent research to predict if you can eventually sell the domain for a lot of money. Try looking at historical sale prices for similar domains to get a better idea of what you can expect.
Step 3: Check domain availability
Once you write down a few domains, you should check for their availability.
First, make sure the names are still available to purchase as new registrations. If no one owns a domain name, you can purchase it right away.
If the name is taken (and many will be), go to the aftermarket to buy them from people who already own the names or who let them expire because they no longer have a need for them.
For example, you can use GoDaddy Auctions for this purpose. A pro tip would be to take advantage of the advanced search option to quickly get insights regarding the type of names you are interested in (prices, availability, etc).
Step 4: Register the domain name
Now it’s time to register the domain name, which means buying the domain and finally registering it to your name.
This process is a simple one, and it doesn’t take much time. Just visit a domain name registrar or negotiate the price with the owner, and that’s it.
Step 5: Put it up for sale
Once you have secured your preferred domain, you can put it up for sale. You will most likely be contacted by potential buyers, so make sure that you choose the best offer you get.
Your buyer pays you for the domain, and ownership will be transferred upon their new registry.
Make sure that you find a reliable venue that can be trusted. Choose a place with high ratings from reputable organizations.
When a buyer sees your listing on a reliable marketplace, it becomes easier for them to commit to buying your domain.
That’s it, you now know how to do domain flipping. Last but not least, keep in mind that you also have to find a good place for this kind of action.
An all-encompassing domain marketplace can be used both for selling and buying domains. But check the reviews and comments that users have left about it online.