Help Me/Question Domain Flipping For Profits?

cheezcarls

It's Game Time!
Hello guys!

I do have a question that immediately struck in my mind. Have you tried domain flipping for profits? For those of you who doesn't know what is this all about, let me explain this to you in a simple way.

It's all about buying a domain and flip it for profit by selling it in a marketplace after a long period of time.

If you have any any experience with domain flipping to earn profits, can you share some tips or techniques that you are doing in order to profit from the domain that you just bought?

Thanks in advance.
 

dcristo

Content Writer
Most domainers lose money. It is not impossible to turn a profit, but no way can you jump into the domaining market today and make a full time living from it.

All the extremely valuable domain names have already been registered, so a lot of the time you have to speculate in emerging markets or other extensions that aren't as popular as .com but may potentially have value later down the road. There are still some gems you can find in popular extensions, but you need extensive knowledge about a market to gain an edge.

IMO, if you're going to register a domain name, you should have a clear development plan. So that way, even if you can't flip the name for a profit, you can build a site, and still make some money.
 
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bharath

Well-Known Member
Domain flipping is hard to turn into profits, I have sold few of my domains, but all they were less price because I need to renewal every year and ave to develop them.
IF you have great names domain flipping really works, I have got an offer for a domain $1k but it was for developing so didn't sold.
All of my domains that are sold for the price less than $100 only.
 

phoenix2015

Well-Known Member
Hello guys!

I do have a question that immediately struck in my mind. Have you tried domain flipping for profits? For those of you who doesn't know what is this all about, let me explain this to you in a simple way.

It's all about buying a domain and flip it for profit by selling it in a marketplace after a long period of time.

If you have any any experience with domain flipping to earn profits, can you share some tips or techniques that you are doing in order to profit from the domain that you just bought?

Thanks in advance.
I've heard of people making money doing it. But, the problem is that, I think, if you want to make money with it, then you have to take the time to learn how to spot domains that have potential. I have no idea how to do that. I anyone making any money flipping domains? Or does anyone have some tips?
 

Zirkon Kalti

Content Writer
There is only an opportunity to generate big profit from domain flipping if you have a portfolio of premium domain names that people want. You can get a broker to help you sell the domain if you cannot sell the domain at your asking price but they will charge you a commission. If the domain has traffic and revenue, people are more likely to buy it.
 

Webmasterserve

Staff member
Administrator
Domain flipping is a quick way to make money, but it is not an easy way. It becomes easier and easier the more you understand domains and know how to appraise or valuate the domains before buying. It is the same as real estate flipping, if you understand the value of an old building and know how much it would take to repair it to flip it, you can make an informed decision and calculated risk in buying the old building, refurbishing it and flipping it for a profit. Same goes with domains and websites, except not all domains need to be "refurbished", in domain and website world "refurbishing" would mean developing a domain into a website or blog, or improving the existing website or blog or increasing traffic and generating higher income and then flipping based on income generated.

I've flipped several domains and large websites in the past few years and some of them with profits of over 200% - 400%, at the same time I have also invested in wrong domains and websites with a loss of 100% when I decided to abandon them and focus my time on better projects. The key is to invest smartly and risk based on industry knowledge. When a big movie comes out or a new product is being launched or something big is in the news, usually domain flippers try and grab all domains which have that keyword, in the recent years it has happened with domains related to drones, marijuana (as marijuana is close to being legalized in US), gadgets like iwatch, hoverboards, SEO industry domains, etc. Most of the domains people buy, will most likely be abandoned and they will lose 100% investment, which would be the price of buying a new domain $1 - $15 depending on domain registrars and whether the buyers got a promo deal, free domain with hosting, etc.

This reply is not to give a detailed answer but some of the tips for domain flippers would be:

  • Risk within Reason: If you do not know much about domain flipping, do not risk a high amount. Rule of thumb for me was "risk what I am comfortable in losing 100%" in the beginning. So, in the beginning I've only risked amounts less than $25, if entire investment is lost - the lesson was worth it. Risk reasonably!

  • Learn from the Pros: There are people whose full time job is domain flipping, they are on lookout for good domains, sometimes they develop the domain into a website for flipping and other times the domain itself is flipped without any effort in creating a website. Be active on domain and website marketplaces and checkout the content being bought and sold, looking at the sales and auctions will help you understand what is valuable and what is junk. It is not always easy to spot the difference in the beginning, but the more sales you check out the more you understand. Follow the Pro Domain flipper's blogs and sales to keep abreast with their activities.

  • Eyes and Ears Open: Keep your eyes and ears open about new events, product launches, big incidents, sporting events, etc. In 2014-2015 several people went and bought hundreds and thousands of domains about EBOLA as it was in the news all around the world. Some of those landed in domain auctions and domain marketplaces for sale, receiving low bids or not sold at all. Buying domains about latest events is a good idea as long as you understand what kind of latest events or issues are profitable. If marijuana is legalized in the US, several vendors will invest in creating websites, online stores and forums, thus marijuana domains entered the auctions and marketplaces in bulk. But, marijuana may not be legalized for a while and not all domains will be valuable, if someone has a domain like "marijuana.com" that is valuable in itself, being single word, catchy and exact match domain (EMD). But, if someone has a domain like "marijuana4us.com", the domain in itself is not so valuable but if developed into a website with unique content and generates traffic, vendors might be interested in buying it to create their brand or website using the domain.

  • Avoid Trademarks and Intellectual Property: Buying or investing in domains which infringe on someone else's trademarks is a bad idea. For example: it is easy to find a domain with the word "Amazon" in it, it the intention is to build a website about Amazon rainforests, such domains are not a problem and they are not infringing on trademarks, but they may not be so valuable, depending on the website created. But, if a domain with word Amazon is bought with intention of creating an Amazon affiliate store, it is infringing on Amazon's trademark and it can easily be taken away if Amazon chooses, it will be hard to sell such a domain for a high price, any experienced domain flipper will not invest in such a domain, if you get lucky some fool might pay you a high price for it thus generating traffic, but you don't want to be that fool who invests a high amount in such a domain.

  • Keyword Domains: If you can find keyword domains including one word, two word domains, you could setup a blog and flip it for a profit. You need to have some knowledge about keywords, keyword values and keyword relevance in current business world to understand how much you can risk on such a domain. For example: a domain like "LaptopDeals.com" would be highly valuable, it is a highly searched keyword domain with a high CPC or cost per click, plus it has potential to be a good laptop deals website generating affiliate income and commissions. But a keyword domain like "ebolahomebasedtreatments.com", although it was a highly searched term for a year or two, ebola is really rare and no industry is investing extensively on ebola treatments to buy such a domain from you for a high price.

  • Learn to evaluate domains: There are automatic domain appraisal websites like estibot, but none of the automatic appraisal sites can evaluate a domain's value accurately, atleast I don't know of any automatic appraisal site which has a complex algorithm to appraise a domain. Ignore the estimated values and learn to evaluate a domain based on the factors mentioned above including - word, language, keyword, typos, keywords, search frequency, cost per click, relevance to for-profit entities, domain authority, page authority, good backlinks, age and history, blacklisted or not, banned by google adsense or not, etc.

  • Value changes with time: Some domains maybe worthless today, but after a few years they maybe really valuable. Many domainers buy domains years in advance anticipating a future event or product. For example: people buy domains about iphone7 or iphone8 even before iphone 5 is released, anticipating that such a domain will become valuable when iphone7 or iphone8 are released. "iPhone" is a trademark term but since Apple is not enforcing their trademark and taking away every domain with such a trademark, several sites are running with such a domain, it is risky but people are willing to invest a moderate amount in such domains. But, nobody in their right mind will invest a very high amount in a domain which infringes on trademarks as mentioned earlier, but if you buy such a domain for $8, renewed it for few years for $40 and sell it for $150 you still made a good profit.

  • Dropped Golden Domains: Some great domains get dropped everyday and professional domainers keep an eye on such domains and register them as soon as they enter the market. Usually such domains end up being picked up by domain registrars since the registrars know the exact moment such domains are dropped, it is illegal for registrars to do such a thing but the industry is full of such registrars who take advantage and find loopholes in the process. Still, many good domains end up in the public market and keeping an eye everyday on dropped domains and quickly evaluating them and registering them gets you a good chance of flipping them for a profit. But, before you invest keep all the above points in mind and invest with knowledge and calculated risk.

  • It is not Gambling, its a business decision: Domain flipping is not gambling, several newbies treat it as gambling and start buying domains without much thought into their investment hoping that one of their domains will get them the jackpot. Instead of buying several useless domains, try to visit popular domain and website sale marketplaces and buy something which is less risky and continue developing it and generate traffic and flip it after your produce some results.

  • High Organic Traffic or High Income Generating: If a domain is aged and was established and generating high traffic, its a good idea to invest in such a domain as long as it has other advantages like keywords, short domain, TLD, etc. Keep in mind the traffic maybe due to old backlinks or promotion done by the previous domain owners, so redirect all 404 error pages appropriately, build a site which can retain such traffic and flip it. If you can keep the domain for a few months and continue to retain high traffic demonstrated by your Google Analytics proof, you can expect to get a good profit on your domain if you invested carefully.

All the points I mentioned above are debatable, since this is not a detailed reply I cannot explain each of them in detail here. but every point above can be a full article in itself for a domain name forum. No single criteria is enough in evaluating a domain, all of the points above and probably more need to be kept in mind before deciding how much you can risk on a domain investment.
 
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