Want to make a full-time income with part-time hours? Domain flipping is one way to go. It is a very lucrative business where you can sell domains for thousands of dollars – buying from one place and then selling elsewhere. Even some domain flippers have sold domain names for millions of dollars.
The popularity of domain names has established domain flipping as a growing business you could do from anywhere with an internet connection.
Although domain flipping is somewhat controversial, some entrepreneurs have made a living selling domain names. Let’s take a look at domain flipping, including tips to make money flipping domain names and the risks involved.
Table of Contents
- 1 What Is Domain Flipping?
- 2 Is Domain Flipping Legal?
- 3 Nine Tips on Making Money by Flipping Domains
- 3.1 Choose a Reliable Marketplace
- 3.2 Start Small
- 3.3 Evaluate the Potential Value of the Domain
- 3.4 Stick With Popular Domain Extensions
- 3.5 Make Sure That the Domain Name Has a Clear Past
- 3.6 Make Sure the Domain Is Search Friendly
- 3.7 Research Similar Domain Names
- 3.8 Check the Domain Name’s Backlink Profile
- 3.9 Don’t Rush To Sell
- 4 Domain Flipping Risks
- 5 Final Verdict
What Is Domain Flipping?
Domain flipping is buying a domain name to sell it later for a higher price to make a profit.
Domains flipping are similar to a real estate business; just like flipping houses, you can flip domains. Domains have now become a very profitable business because everyone is moving online after the 2019 pandemic, and companies are willing to pay a lot of money for an online identity.
Is Domain Flipping Legal?
Domain flipping is absolutely legal! There is nothing wrong with buying and selling domains for profit. Many domain flippers make a living, full-time or part-time, by flipping domains.
The only legal issue domain flipping can bring you is if you purchase a domain that is obviously related to an active business.
Unlike illegal domain squatting, domain flipping won’t get you into any legal trouble as long as you don’t buy a domain name that has been copyrighted.
Nine Tips on Making Money by Flipping Domains
Making money flipping domains takes time and dedication. It’s not a matter of luck. Follow these nine tips to get the most out of your purchases and resells.
Choose a Reliable Marketplace
The first step in domain flipping is buying a domain name which you can do from several websites like AEserver.
Look for websites that sell inexpensive domain names, perhaps that is related to a specific topic, product, or location.
You can also visit an auction marketplace to browse domain names for sale or keep an eye out for recently expired domain names.
Before investing in domains, create a budget to ensure you don’t overspend. Then invest your time in browsing through your options and market trends.
If you are a beginner domain flipper, a little bit of experience can go a long way in this field, as it will help you to calculate and predict value — an essential skill for any investor.
Don’t purchase the first domains too early, as if you may have an emotional connection to a name with little value.
To make informed decisions, create a list of potential purchases before taking any action.
Determine why each domain can offer value to buyers and how many buyers would actually be interested.
An analytical technique will ensure you buy truly worthwhile domains.
Evaluate the Potential Value of the Domain
Consider the following facts to determine the value of a domain.
Length – Short domains are more in-demand and sell for a higher price than long domains. Pick the shortest domain name that has a maximum value.
Memorability – The domain names that are pronounced easily are also easy to remember, which ultimately brings up the value of that domain. It helps people to remember the website more easily. You can research memorable domain names by googling the most demanded domains and looking for your domain name based on the results.
Brandability – Brandable domain names have the above characteristics and are domains that are already registered but not in use. They are already registered to be sold to a specific buyer relevant to a particular business. Brandable domains are desirable and turn immense profits.
Stick With Popular Domain Extensions
The most popular domain extension is .com, and the domains having this extension are the most valuable ones. More than 52% of the domains are registered as .com out of 26 million TLDs. Other most common domain extensions are .net and .org. However, other extensions offer an opportunity to register short and brandable domain names already taken with the popular extensions. For instance, you can use a ccTLD and target local buyers, by offering them a domain unavailable in the .com extension. If you target UAE, the extension will be .AE.
Note that even though these are country-code extensions, the businesses that use this type of domain extension can also operate on a global scale. Of course, not all new extensions will have considerable value because of the multitude of options available. Still, some of them are definitely rising stars that are becoming more popular each day.
Make Sure That the Domain Name Has a Clear Past
The domains with a horrible history are not valuable, and people are not interested in buying them. You can use websites or tools to double-check that the domain does not have a bad past with Google.
Make Sure the Domain Is Search Friendly
It’s crucial that the domain name is SEO-friendly and includes the relevant keyword. These domains tell visitors what the business is about, are more likely to get traffic, and help the website to rank better in SERP. If the domain keyword is searched more than 200 times each month and people are bidding on it for Google ads, it will sell for a pretty high price.
Research Similar Domain Names
Consider buying similar domain names that are non-trademarked. But it is highly recommended to avoid trademark domains.
The American Farm Bureau Federation was able to sell “fb.com” to Facebook for $8.5 million, which is one of the most expensive domain sales till now.
If you own a business, make sure not to buy a similar domain to your competitor’s brand. It can be considered buying a domain in bad faith, which can get you into legal trouble.
If you purchase any expired domain name, check if any other websites link to it. This backlink from other websites can build up the domain value making it more desirable to buyers. You can find the backlink information with any online tool.
Don’t Rush To Sell
Most beginners usually make the biggest mistake of selling a domain too early. If you purchase a domain with the potential to increase its value, you may want to optimize the website before finding a suitable buyer. This process will take some time but will let you ask for more money.
Domain Flipping Risks
Domain flipping has a low risk because it has a low barrier to entry and doesn’t require huge investment and expensive equipment. Additionally, if you face any loss, it will probably be low, amounting to the purchase price of the domains. So, focus on keeping your costs down and plan your purchases carefully.
However, it would help to be mindful of setting high expectations. It would be best if you don’t expect to sell a domain for millions because someone else has done it. Try to focus on making modest and attainable profits at first and build your experience as you go.
Domain flipping can lead to enormous profit if you invest in good domains that are high in demand. The process took the time initially, but once you get some experience under your belt, you can quickly identify the domains that will get you the best earnings.
While flipping domains won’t lead you a million-dollar sales on average, it can lead to plenty of extra money with minimal effort.
So, if you decide on flipping domains, AEserver offers you a bulk domain registration where you can register various domains cheaply and sell them further according to their value.