There are many new schemes to make money online today. All of them require hard work, but few of them are as satisfying as watching a domain you bought dirt cheap being sold for several times its market price. This is called domain flipping, and those who do it professionally are called ‘domainers’.
For most people searching for online money making methods, the word ‘domain’ is scary and unfamiliar. But the truth is that once you learn how to buy and sell domains, there is no ceiling to the profit you can end up making.
After all, car.com was sold for a staggering $872 million! Till date, it’s the highest paid domain sale in history. There may actually be higher, but most companies like to keep the price of their costly domains under wrap.
How Much Can You Earn From Flipping Domains?
I just quoted the highest price ever paid for a domain, but it’s historic for a reason. This doesn’t happen every day. But you get to hear stories of $60 domains being flipped for $60,000 in the secondary market, and that’s a lot more achievable.
Still, a complete newbie to the domain flipping world should have realistic expectations. You can start by buying cheap domains on GoDaddy.com and NameCheap.com. Try your hand at selling these for a profit. It may not be much but the experience will teach you a lot about how the secondary domain market functions.
How Do You Start Flipping Domains?
First, you do your homework. Look for likely domain names that you think might find demand in a niche you’re familiar with. You can look up keywords on NameBio.com to find out how much variants of a domain name are worth in the market. And then you hunt to find a domain that you can afford to buy.
Don’t invest too much right from the start. Buy cheap domain names from GoDaddy Auctions and resell them at a slightly higher price. Over time, you’ll develop a sense of what kind of names can get you higher profits.
Different Ways of Flipping Domains:
Domainers don’t always buy a domain and immediately sell it for profit. Market price doesn’t go up that quickly, and you usually won’t make much money if you work this way. Also, for a bigger number in sales, you need to know whom to sell your domain to.
Domainers actively look for domain names that have value in specific categories that they understand well. If you know what kind of domains are considered authoritative or cool in a particular market niche, then you’re far more likely to find a buyer willing to pay good money for it soon.
Sometimes, domainers hold on to a name until they see that the demand for it is rising. Maybe the name suddenly becomes a pop culture reference, or maybe the name is used by a company on the rise. They wait until profit looks more likely, and then either contact potential buyers directly or put it up for sale.
Another way to make money from purchasing domains is to find a site that can be used for pay-per-click advertising. While you wait for the value of the domain to increase, you can use it as a source of passive income.
Finally, you can buy an unknown, unused domain, and build a fully functional website on it. This is a lot like how flipping houses works in real estate. In essence, you’re building value into your base purchase. By the time you’re done, you’re no longer selling a name, you’re selling a fully furnished house. So, your selling price will be considerably higher than what you bought the domain for.
Risks of Flipping Domains:
Just like any market where the value of assets rise and fall, a secondary domain market is a place where you have to be careful about the risks you take. It’s possible to purchase a domain and never find a buyer to sell it at a profit too. You may even end up selling it for a loss out of desperation.
This is why don’t get into this work expecting to get rich quickly. And don’t make big investments until you have the experience to be reasonably certain that your money is not going to be wasted. Once you’ve mastered the skills of a career domainer, you’ll find that there is both thrill and deep satisfaction in creating value for an
underappreciated name, and then flipping it for profit.