People buy and sell lots of things to make a profit, known as ‘flipping.’ For example, you can ‘flip’ furniture, or even houses and real estate. One way some people make money is with domain name flipping. These “domain flippers” can potentially make thousands every month if they make the right purchases.
Not sure what domain flipping is, or whether it’s right for you? This guide has everything that you need to know to fget started.
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Domain name flipping FAQ
What Is Domain Name Flipping?
Firstly, what is domain flipping, and is it as difficult as it sounds?
In straightforward terms, domain flipping is the act of buying a domain name at a low price and selling it to an interested party for more than you paid for it.
People make money from domain flipping by buying domain names that are going to be popular. You will need to evaluate whether the domain name is worth buying, as you’ll need to sell it on again.
If you get good at it, though, you can make a side hustle out of domain flipping.
Is Domain Flipping A Good Money Maker?
Here’s the big question: can you make good money by flipping domains?
The potential is very much there. For example, the most expensive domain name ever, cars.com, sold for $872 million (source).
Now, you’re not going to make millions selling domain names unless you get fortunate. However, it is a great way to bring in a bit of extra cash.
If you’re looking for a side hustle, you’ll be able to make some good money if you keep at it. If you want to make it your main job, though, you’re going to be disappointed.
The good news is that technically, you don’t need a lot of cash to get started. You can buy a domain for as little as $10, and you’re ready to get started.
The issue is that that domain name flipping is somewhat of a numbers game. You’ll need to have a few domains in hand before you see one sell.
In fact, you may be waiting months or even years for one to sell. If you’re happy to sit and wait for the domain to acquire value, though, you can make a profit.
Remember that not all your domains will make money either. Domain flipping does involve some speculation, and sometimes it just won’t pay off.
However, if you sell off one domain for $1,000, which is entirely possible, it makes it all worth it.
Remember, you’ll have to pick the right time to buy and sell your domains. You need to find domains just before they become popular and in demand, driving up the price.
Once you’ve got them, you’ll need to sell at just the right time. If you sell too early, you may not make the cash you were looking for.
If you want to make cash more quickly, you can look into selling domains at auction. Again though, remember that you won’t make quite as much money in these cases.
What To Consider Before Domain Flipping
Before you get into domain flipping, you’ll need to consider the following:
Are you willing to put in the research?
There’s lots of research you have to do to find just the right domain name.
You’ll have to put in the time and effort when you’re building a portfolio of domain names. Do you want to put in that time to do so?
Do you have the money to invest?
You can get started in flipping with just $10, but many recommend buying a few domains at first to get started.
Do you have the cash on hand to pick up a few domains ready for sale? Remember, you may not make that cashback right away.
Are you ready to go up against other flippers?
Depending on the kind of domains you’re looking to buy, you’ll need to go up against a lot of competition.
There are other flippers out there looking to make a profit just like you are. You need to be ready to go up against them and win the domains you want.
What Is Domain Drop Catching?
If you’re already interested in domain flipping, you may have heard the phrase ‘domain drop catching.’ What does that mean, and is it something you should do?
Domain drop catching, also referred to as domain sniping, is the act of jumping in to buy a domain once the registration expires. Many people have bought very popular domains for cheap because the previous owner let them expire.
If you want to make some serious cash, this could be the way to do it. This is how people manage to get those highly valuable domains and resell them to the highest bidder.
There have even been examples of people sniping the domain names for highly famous brands to sell them on.
To do this, you need to keep track of the most popular domain names about to expire. There are plenty of tools and sites you can use that can do this for you automatically.
This is often preferable, as once a domain lapses, there’s usually a grace period so that the owner can re-register it. That can be anywhere from 30 to 90 days.
Once that registry has lapsed, the domain is released back into the ecosystem, and you can snap it up. Then, you’re ready to sell it off to the highest bidder.
How to make money domain name flipping
Ok, sounds good. How do you get started with domain flipping?
Find a domain to buy
Firstly, you need to go looking for domain names. There are many ways you can do this, such as using domain name search engines to check out domain auctions.
If you have an idea for a domain name and don’t think it’s being used, you can check it out through a domain name search. If it’s not being used, you could snap it up for as little as $10.
Expiring domain auctions are also a great way to find domains. There may be plenty in there with a lot of potential, and can get them for a song.
Consider the value of a domain
Once you’ve found a domain that you think is worth buying, you’ll need to spend some time evaluating it. Not every domain will make you money, so you need to be sure before you part with your cash.
Consider whether it’s something that’s easily used for branding or is a search-friendly term. For example, British home DIY store B&Q owns the domain name diy.com, which is highly searchable.
Do some research, looking at similar domains and what they’ve sold for in the past. Is this one worth buying?
Register that domain
Think you’re onto a winner? Then it’s time to register that domain name.
This is super easy to do, and it won’t take long. You can easily do it through any domain selling service, and once you’ve put that cash down, the domain name is yours.
Find a buyer
This is the most complicated step of the process. Now you have your domain; you need to find a buyer for it.
There are several ways you can do this. If you believe your domain is popular enough, you should see people reaching out to you, looking to buy it.
If you think they have a good offer, you can agree to sell the domain privately.
To catch people’s attention, you can create a landing page that shows you’re looking to sell. You can also add an asking price if you believe it’s reasonable.
Want to sell it more quickly and potentially turn a profit? Then you can list your domain on an auction site.
This allows you to find a buyer more quickly, but you may not get the price you were looking for with it.
Sell your domain
Now you’ve found a buyer; you’re ready to transfer ownership of the domain. Again, this is a simple process that will not take long.
Once you’ve sold, you’ve hopefully made a profit. That’s all there is to flipping domain names.
What Domains Should You Be Looking For?
Sounds good so far. You’re ready to get domain flipping, so what kind of domains should you be looking for?
There are a few different things you should look for in a domain name. Look for the following:
These are valuable to domain flippers, as they are a lot cheaper than existing domain names. These are great as there’s much less competition in getting them.
You won’t have to fight others at a domain auction or make bids to an owner to get it. You just need to buy it from a domain registry, and you’re all set.
Short domains are something of a mixed blessing for any domain flipper. They’re precious, as short domains are easier to remember and easier to market for anyone who wants to buy them.
That means you can potentially get more cash for a short domain name.
However, you won’t be the only one hunting those domain names down. If you are looking at one on an auction site, plenty of other people also look at them.
That can drive the price up, so you need to consider how much you want to spend on your domain.
There are a couple of ways you can take advantage of new domain names.
For example, if new modifications and extensions are released, you can jump on popular domain names before everyone else.
The other option needs you to have your finger on the pulse of market trends. Is there a product or service that’s new to the market?
If so, you can grab the domain name for them early and turn a profit.
For example, in the early days of cryptocurrency, many domain names were out there for the taking. Someone likely made a lot of money on the cryptocurrency.com domain.
Locally specific domains
You don’t need to get the domain name for a massive brand to turn a profit. Instead, you can turn your search to a much more local area.
These can be domains that are going to be very valuable for flippers, but there won’t be as much competition for them.
For example, say you want to bag a domain for a Manhattan-based dog groomer’s parlor. You can buy doggroomermanhattan.com and make a good amount of money without having to fight other flippers for it.
Keywords are everything in the world of online marketing. Keywords are what you’ll put into Google to find something.
Businesses aim to use these keywords on their website to drive traffic towards them. Of course, the best place to put keywords is in the domain name.
You can do keyword research by using the Google Keyword Planner tool and find domains that way. Be aware, like short domains; this is a competitive marketplace.
As you can see, if you have the time and the know-how, domain name flipping is a great way to make some extra cash. You’ll need to have your ear to the ground and a nose for unique domain names that haven’t been bought yet.
If that sounds like you, get started now and see just how much cash you can bring in.