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Domain Flipping: How To Buy And Sell Domains For Profit

During the past 2 decades with an increased focus in the area of Internet content and technology, I realized that in many ways, the digital settings can reflect the ways how traditional operations work. For example, domain flipping, which in my opinion, is similar to the concept of real estate property flipping.

In property flipping, you may buy a property, such as a house or an apartment at a good price and resell it at a higher price. Flipping a domain is much the same principle and can be just as stunningly profitable as a real estimate deal.

Here are some examples of domain names that have been inverted for massive amounts;

  • Insure.com was sold for $16 million
  • 360.com went for $17 million
  • Insurance.com was turned over to a whopping $35.6 million

These figures look great, don’t they? But before jumping on to buying domain names like crazy there are a few things you need to know about the domain flipping business.

How to estimate the value of a domain name

How to estimate the value of a domain name - domain value estimation tools will help you find out the estimated price of your domain.
Estimated by godaddy.com/domain-value-appraisal

Domain purchase is not as easy as snapping random names and hope they all go up. To put it briefly, there is a subtle art, as well as a bit of science behind the madness. Top domain flippers put a lot of thought and knowledge into their purchase decisions.

If you think you put a price tag on the domain, like gambling, then you would probably need to think twice. Experienced domainers put the domain through the evaluation process before investing. Some experts and companies offer this service. The assessment is based on parameters such as domain age, length, extension, being brandable, link profile (SEO), and the likely assessment of the future potential.

These factors should be looked over:

1. extension

.Something is to expand the domain name, otherwise known as top-level domain (TLD).

Not all civil liability equal, and some are more valuable. For example, as seen in the GAP alone, the country-level domain (for example, .za) would not be of value as a standard .com TLD.

2. The length of the name

Although ThisSpaceForSale.com may sound like a good idea as a domain name, a rule of thumb in the industry is the shorter, the more valuable in price. Take an example, the sex.com which was sold for $ 13 million, one word containing domain can hit an amazing price spot.

3. The composition of the domain name

Similar in concept to the length of the name, as spoken above, having a domain name that does not include a hyphen(s) or numeric values is a (much) better way.

Domains that consist of only alphabetical letters are more highly evaluated whilst domains with numbers or hyphens, for instance, sales1293.com or 28domain77.com, or make-money-online.com, are often considered low value or spammy domains which investors avoid purchasing. (unless they are thinking of building a lousy network of PBN or spam network.)

4. Niche In Mind

Besides how great the domain name sounds, thought of this thing shouldn’t be overlooked; what niche the domain would potentially serve and what industry(ies) the potential buyers who would be interested in your domains work in.

5. SEO (Search Engine Optimizaion) Metrics

If you are buying expired domains or second hand domains, the previous estimation of the domain matters. Investors often consider its SEO metrics such as the backlink history, Google index status, topical trust, and authority.

It’s safe to examine the domain status from the aspect of SEO before your purchase. Indeed, you would regret jumping to purchasing one that is banned by Google. Needless to say, expired domains are full of spam junks in fact.

P.S. If your focus is to find a well-built SEO domain, you will enjoy the tools like DomCop or Spmazilla that list expired domains with SEO details.

6. Pizzazz (Brandable)

Typically, when you purchase your own domain name, people tend to opt for something quick and energetic. The reason for this is that it is chic. A domain name is brandable when it is fun, creative, short, and crisp so it’s memorable to people.

Think about that, Nike, for example, short, sweet, and today a global multi-billion-dollar brand.

It isn’t a Make-Money-Quick scheme

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Again, like property flipping, there is an inherent risk in the domain flipping business. We have no doubt that there are people out there who are making substantial money from domain flipping, but in all honesty, hitting the jackpot with the name isn’t a thing to happen to everyone.

Even the worse is those who end up with a bunch of domain names useless or not saleable. Those domain names are nothing more than the burden that puts you in a situation where you have to spend the regular costs to maintain them. So, simply put, it’s losing money.

As most of all other legitimate businesses go, there hardly happens an overnight success in domain flipping. It requires knowledge, experience, and a little luck as well. It isn’t a good idea to go into business expecting to become a millionaire overnight.

Instead, the first thing you may want to is preparing yourself and get the hang of how it works and how the trade goes. You will definitely obtain a practical sense and skills on how to upscale the business after your learning curves and slowly over time.

A pipe dream like the multimillion-dollar domain fantasy on your first day in business isn’t helpful.

Warming Up For Domain Flipping

Whether buying or selling domain names, there are a number of good domain marketplaces on the internet. Likely, to everyone, GoDaddy would be the one that pops out the first. Godaddy is a great place to do the domain flipping business where you can not only trade in domain names but also park ones that you have bought. 

The repetitive process of the trade cycle: buy-park-sell and all you have to sacrifice to close a deal is a small percentage of the fee from the sale price.

Accumulation of your domain properties

To be in a domain flipping game, you need to be ready to buy a number of domain names and put them into your portfolio. 

Having a dime of domains helps keep your business running. Not only to sell bulk and get the most profit out of the bulk sells but also it’s a way to maximizing your selling potentials and importantly, to benefit from all the monetization streams, such as ‘affiliate links’.

Even if you fail to sell all of the domains you sell, the unsold ones may still keep you on for potential income; domain properties parked in domain registrars can be monetized through affiliate links. And with that, it’s a great reinforcement to maintain your business up and running.

Tag the right price for your domain.

Not an easy task, but this should be one thing to make sure so you won’t be burnt out, failing to close a deal. In fact, buyers hardly purchase domains overpriced to the real value — every price you tag on should make sense so the buyers will be convinced.

To price domains right, you may want to capitalize on some web tools that help assess your domain value. There are plenty of them estimating a domain price by their own metrics, as in, they can be useful references for you to determine what prices your domains have to be labeled of.

1- How to buy domain names

To buy a domain name, 2 different ways are broken down:

  1. Register a brand new domain – Cost Estimation: $10 – $50 per one depending on TLD
  2. Buy a used domain – Cost Estimation: $10 – over $10k highly depending on the value of a domain.

Simply put, it couldn’t be more phenomenal if you manage to grab a domain with a wonderful name on your new domain registration. But in reality, the chances are… kind of extremely low since the market has been fluctuated full of registered domains.

Then, alternatively, the other way you can turn around is buying a used domain. Most likely from a domain marketplace(s). For sure, it needs your effort and time to invest in in order to find profitable domains to buy and sell. As in, there definitely are, that you can buy cheap and sell high if you decide to bother with your constant exploration over domain marketplace.

2- How to sell domain names

Similarly, where you can sell domains can be where you bought your domains. It’s because you will likely get through the same process as you bought the domains, however just from a different perspective – from a buyer to a seller. That’s only the difference.

That said, if we more specify and break down the ways to sell domains it can be as follows, in a simplified way:

  1. Direct Approach: Fees can be saved (about 20% of the domain price), yet your own hard work needed to close a deal.
  2. Domain Marketplaces: Traffic and sales exposure to prospects are guaranteed, but you can’t avoid paying a fee of a high portion based on the sale price.

Just like when you sell your used car, domain names can be sold directly to somebody that wants it. For that, you have to have your own channels (e.g. your website, forums or social media, etc) to promote your assets on your own. If you succeed to sell a domain in your direct approach, it’s a great way to cut all the fees and expenses that you have to pay using an intermediary. (such as GoDaddy etc)

Despite that, speaking a little bit more down to earth, it can become a really hard job to sell your domains in that direct approach. For that, you really have to have a strong streamline of traffic that is niche focused or be really seasoned in client acquisition and digital marketing. Above all, it’s a whole lot of time investment and hard labor to stand alone in selling your domains.

Alternatively, we have a 100x easier option to sell the domains you have — using marketplaces where people come buy domains. It’s definitely an easier way to sell because they are marketplaces that keep millions of the eyeballs of highly prospective buyers in although you will have to sacrifice some certain percentage of a transaction fee.

Furthermore, if you hate a long wait and want a quicker sale, their premium listing services can get you another high boost on your sale. It can be thought of as a win-win situation that the intermediaries earn commissions and sellers get the sales faster.

Top 5 Domain Marketplaces To Buy and Sell Domains

Whilst you can explore your way into a more variety, there are several big names here in terms of buy-sell domains. They are picked out in the list considering their reliability and reputation.

Top 5 Domain Marketplaces To Buy and Sell Domains and domain flipping business

1. GoDaddy

It’s needless to say Godaddy is notably at the top notch in the industry. Most likely, you couldn’t live without GoDaddy while you’re doing the domain business. It’s the broadest and hugest marketplace for buying and selling domains. Simply means biggest stocks are in GoDaddy that you may want to purchase.

2. Flippa

It’s another big name as famous as GoDaddy. In Flippa, you can even buy and sell websites, blogs and other types of online properties as well as domains.

3. Domain.Com

Domain.com has been founded in 1999, been around for over 2 decades. It’s famous for the cream of the crop – amazingly high-end domains you can discover, that are greatly profitable. It’s a favorite digital hangout for hungry domain hunters watching out for a chance to capture fantastic domains.

4. Sedo

Sedo is one of the largest marketplaces for domains. They offer a strong domain search function and filters. The idea of suggesting all the domains containing relevant and target keywords is why a lot of domain hunters love Sedo; this makes their job tremendously easier to find their target domains.

5. NameCheap

Last but not least, we can’t talk about domain registrars and marketplaces without mentioning NameCheap. NameCheap is a great place to buy and sell domain names, boasting its huge market capacity.

What’s great about NameCheap especially is their wide range of domain prices for those who aren’t very budget-free. Their easy-to-use interface and domain search functionality are another huge plus to find great domain deals for domain dealers.

Conclusion

Domain flipping for profit can be done by anyone who wants to try out. It can seem somewhat technical to digital newbies — not really. It’s all about buying cheap and sell high just like the way how merchandise goes. But only the difference is it’s done in the digital landscape which is all.

In this article, I tried to instill the most basic guidelines in domain flipping and how to buy and sell domains for profit for you to get started. With the key takeaway elements this article reveals, it wouldn’t be difficult to try and take a sip of the taste on how the market works.

Indeed, there is no guarantee that this guideline immediately brings you into a millionaire seller’s position. It could be far from the reality that you most probably will face each and every day involved in the business.

However, you can still consider this job as a great side hustle to aid your finance, at least in your beginning before completely turning into a full time business. Your practical experience and lessons you gain at your down to earth stage will be worth it. Who knows you would hit the jackpot and sell a multi million domain one day.

What do you think?

Written by Lydir Team

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