Domain flipping is the process of buying domain names or websites then trying to resell these for a profit.
Many people don’t want to spend time researching a domain name, setting up a website with content and all the work that is involved. They would rather buy a pre built website that is already up and running to save some time. Often these websites also have some traffic, a social media presence and may have ads already running or are already selling products.
The more ad revenue or product sales and the website will typically command a higher value.
Domain flipping methods
These are roughly the 3 methods you will find yourself in.
Buy an expired domain or a potential new valuable name and park it – then try and sell just the domain name on its own.
Buy an expired domain or a potential new valuable name and create a website on it then sell this for a profit
Buy an existing domain with website and try and sell that website for an increased sum of money. You may need to try and improve the site depending on the circumstances.
The next thing you need to consider is how long do you hold onto the website you are selling, if you simply create a site and sell it quickly then there is a good chance there will be no traffic or revenue generated whereas holding onto the site for 6 months may increase the value as the site can drive traffic to it,perhaps have some small ad revenue and maybe even a couple of affiliate sales.
Domain flipping resources
This is only a selection of resources fo buying and selling domains and websites
Flippa – this is the biggest domain name flipping site, I recommend looking at the sites for sale, the prices they are selling for, the niches these sites are in.
Sedo – the worlds largest domain name marketplace, again look for bargains and see what is selling and the niches for sale.
Afternic – this site seems to sell premium domains, you can search by category which is handy when looking at niches.
SnapNames – a large inventory of domain names for sale
Undeveloped – another good domain marketplace with many listings
Godaddy Auctions – as the name says an auction site for domain names, once again look at the niches, prices the domains are selling for and try and get a feel for what is popular
Domain Flipping Tips
Try and concentrate on a .com extension domain names, these are the most valuable and the most desired. You can also look at .net and .org next but I would ignore all of the new tlds such as .win, .bid, .events – in fact there are hundreds of these now.
Keep track of trends. This means looking at things that are currently popular and can also mean keeping an eye on events that occur on certain dates, you can cash in by registering domain names and creating websites. Examples of events would be sports like the World Cup, Superbowl, Royal Weddings, US Presidents being elected etc. You could look at new games, music trends, electronics releases like new iPhones, games consoles. Try and stay ahead of the competition.
Create some good content for the website, if you need to you can hire a writer to do this. A site with good content will command a far higher sale value than a generic cookie cutter website with duplicate content that can be found all over the internet. This is particularly key for people looking to buy blogs or sites they wish to monetize with adsense, good content is key here.
Install a good, reliable theme if you are using WordPress – make this site look appealing to a visitor, make them want to buy it. Once again a professional looking site that displays correctly without errors in the browser will command a higher sales value with more potential customers wanting to buy it. Would you buy a homemade site that looked like a throwback to geocities.
Create accounts with all major domain name registrars and then keep an eye out for any deals they may have. From time to time there are sales on the premium domain name extensions that you can cash in on. You should not tie yourself to one registrar.
Create a website, social media accounts and make this the home of your domain flipping business. The professional approach will make prospective buyers believe they are dealing with a real business of high standards. If your own business website becomes successful you can even use this to advertise and sell your domains on.
Promote your sites that you are selling via social media – get the word out don’t just rely on the domain marketplace website putting visitors in your direction. Twitter, facebook and if possible instagram and youtube are good sources.
Flipping domains summary
Once again you can make good money but you do still have some initial investment which may be in the form of purchasing domain names, hosting, themes or templates and then content. Always do research, get a feel for what is popular and niches people are interested in at the moment, todays hot trend can be dead in the water in an instant.
If you do this correctly you can make good money but its easy to lose money, domain flipping is a competitve marketplace, lots of people are into this as to be honest its not that technical a method.