What Is Domain Flipping?!
I suppose you have heard about “House Flipping”. Buy a property, increase its value and then sell it at a higher price! This concept can exactly be applied in the online world.
Domain names are online real estates. If you own a good one, then you’ll be able to sell that location at a good price. So, imagine you register a premium name at 10 bucks, then by increasing its value, you will decide to sell it at 250 bucks.
It’s exciting, isn’t it? That’s about 240 bucks profit. And trust me, I was very conservative. You could sell names at much much higher amounts.
Let me give you one real example. Very recently, the domain Color.com was sold at $350,000 in GoDaddy Auctions. Could you believe that? Imagine you had registered that domain back in 1995 or so and just kept it during these years only paying the annual fees around $10 each year and now you sold it on GoDaddy! You could have paid $150 and made $350,000, something above $349,000 pure profit. That’s unbelievable!
While it’s almost impossible to have such nice premium one word domain names, still there is huge money to be made. You don’t need to sell your domain very high. Imagine you have a portfolio containing 10 names each month which you have newly registered and then sell them around $300 each! That’s about $2900 nice profit every single month. Suppose you can sell them at $500 each! That’s $4900 profit.
Not only it’s amazing, but it’s doable. However, there is one point; Domain Flipping is not for every one!
How To Become a Successful Domain Flipper
As I said, not everybody can succeed in this type of online business. There are some factors you need to take into account for taking any step. Here are some:
This is a necessary task in your business plan. Without a comprehensive research, you will not be able to follow the trends and analyze the market. With that being said, research should be a fundamental step before doing anything else. However, you may not overdo by researching a lot and doing nothing. That would have negative effect on your flipping business.
Since it’s about buying and selling, as in many businesses, Branding and Good Reputation is an important success factor. People just don’t come to you and buy your domains. You need to become somebody in online business. While it’s reachable, you still have to build up your reputation by providing quality and becoming an authority. That way, many domainers consider you an expert in the industry and buy easier from you.
3. Domain Value:
The value of the name itself is also an important factor sometimes more powerful than reputation. Imagine you have a domain name like Cars.com! Even if you are nobody in online business, still you could sell it very high. Or suppose you have put a website on your domain that attracts tons of visitors every day! Since your domain value has increased, many buyers will knock your door and beg you to sell them your site (Domain).
Like in other businesses, marketing and promotion is a determining factor. You have to convince your audience why your name is valuable and why they should buy it from you. However, this factor is closely linked with the domain value factor. You would have difficulty by marketing a domain name which does not have any value. In other hand, marketing can improve your branding level.
5. Buying As low As Possible:
If you want to buy an unregistered domain name, try to use coupon and promo codes in order to pay less. But, if you are going to buy from someone else, don’t pay too much. Remember, the less you pay, the more you earn profit. However, if there is a very good name, do not make very low offers because it may insult the owner and make them change their minds by not selling to you. You don’t want to miss such a great opportunity!
6. Set Reasonable Prices:
While it’s important to earn as much profit as possible, you should not set very high prices on domains which they do not worth that amount. It’s vital to have a cash flow rather than selling a name each 9 months. So, try to put a reasonable price. But, if you are selling through auctions, it’s the domain value that can start the bidding war. In this situation, try to put acceptable minimum offers that let everybody participate in the auction.
In domain flipping, many domainers might have a lot of questions about the domain, how to pay, where it is registered, etc. It’s true that most of the information is accessible on the Whois databases, it’s important to answer your prospect questions personally and give them support even after the performed transaction. Remember it contributes to your reputation which is an essential factor in the domain flipping business.
Last but not the least, it’s important to know that you won’t become a top domain flipper overnight! Having patience and learning from mistakes can take you forward. Never give up because success could be only a few steps away from you. Always update yourself and follow the news and trends.
If you don’t know how to choose a good domain name, browse the website and find out the top characteristics of a good domain name! Also, if you want to get started by buying domains from other people, you can check out the Domain Showcase. Who knows?! Maybe you find something you could turn it to huge profit!
To Your Domain Flipping Business!
Hooshmand Moslemi, The Owner & Author Of TopNewDomains.com