How To Make Money Flipping Domain?
The world has come a long way and the biggest boom in the modern era is none other than the Internet. This amazing medium is responsible for bringing the world closer and is a major source of income for many.
When speaking about money-making prospects online, one part-time prospect that comes to our minds is to make money by domain flipping. Yes, it is one of the most commonly pursued jobs people are interested in. These days, there are loads of part-time and even full-time domain flippers who manage to make lots of money through it.
If you are skeptical about starting as a domain flipper or have no idea about what it means, I have got you covered. Through this article, I will walk you through everything you require to know about domain flipping and teach you how to make money with it. So let’s start, shall we?
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What do You mean by domain flipping?
Understanding the concept of domain flipping requires us to first know what a domain name is. Well, a domain name is a string of characters unique to itself which can lead you to a particular website on the Internet.
The idea is to earn a profit by simply buying a domain name at the lowest price possible, and selling it at a higher value. Domains usually have exclusive and restricted access so one must register to access them.
If you wish to buy a particular domain name that is available currently, you can go for it. But if it is not, then you need to approach the current holder of the domain name and make an offer to buy the same.
Domain names can be traded on an open marketplace. There are websites wherein you can list your domain and declare it open for sale. Alternatively, if you know of any interested buyers, you can approach them too.
You should wait until your domain has greater demand for itself to earn as much profit as you can. This is the basic idea of domain flipping. Naturally, full-time flippers do this at a huge scale.
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is domain flipping worth it?
Domain flipping has a good number of advantages to it. Firstly, the biggest reason for its popularity is the great deal of side income you get to earn being a domain flipper.
While some individuals pursue it part-time as a side income along with their regular full-time jobs, you can also run a full-time business through it. You can work in the comforts of your home, locating the most opportune domains and flipping them.
Furthermore, it doesn’t require investment as such. All you need is a laptop/PC, an Internet connection, and a credit card. Besides, your skill of finding the most high-on-demand domain names will take you further in the long run.
Domain flipping has less risk since there are many barriers to entry. With minimum investment, low risk, and great potential, this field is worth a shot.
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Important factors to decide if a domain is worth buying?
Popularity of the top-level domain
The TLD or top-level domain is the ending of the name. Some common TLDs are .com, .io, .co, .me, .org, and .net. I would highly recommend the .com TLD since it is the most common and popular one among users.
Brandability
A short, unique, and easy-to-memorize domain name will always work well. Once a particular domain name grasps attention, buyers will want to buy domains that have similar names as that domain.
Moreover, it is said that brandable domains have greater demand and fetch higher prices than others.
SEO-friendliness
As they say, the Internet is all about keywords and it applies to domain names too. A domain name should be clear enough to tell people what the website is all about just by looking at the name. Thus, including a keyword in the domain name will make it more clickable on SERPs.
So look out for domains with keywords that are most searched on Google. If a domain name is SEO-friendly, there are chances that the website will also be ranked well on Google.
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Value of the backlink profile
Every domain name has a history of backlink profiles and it takes a lot of time to build backlink profiles. Buying domains that have a successfully established base of backlink profiles will fetch you better prices for selling them.
You should check how many backlinks a domain has and also the rank of each such backlink.
Step-by-step guide for domain flipping
I have listed the five basic steps you need to follow for profitable and convenient domain flipping. Take a read and you will get a hang of how it works.
Search for a domain
If you want to make the most money by selling a domain, you’re required to find a domain that is reasonably priced for purchase and also has a high demand. Also, it should be profitable to sell later. You should use domain search websites wherein you can check out all the domains currently on sale.
A simple domain name search can help you find the most potential domain names. Try and look for domains relevant to a particular field, product, or service. Domain auctions serve as great platforms to let domain flippers find the domain names they are looking to buy.
You can use other domain search tools like SpamZilla to find domains. This platform lists domains along with the SEO value they hold. The ones with the most SEO value and the largest backlink profiles are naturally the most promising ones that will give you good profits.
Domain Hunter Gatherer allows flippers to search for domains in real time and lists the most valuable expired domains. DHG helps you to even judge and evaluate the quality of any particular domain.
Buying a domain at the best price might require you to be online frequently and constantly hunt for the ones that are expiring. However, trust me, it is worth all the effort.
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Assess if the domain is worth buying
Once you come across a domain that seems good enough to buy, you must do a little analysis to decide whether you should invest in that domain name.
Is it lucrative enough to sell in the future?
Does the domain name have a huge demand currently? These are just some of the questions that should pop up in your head.
Evaluating a domain depends on several factors. First, you must buy it at the lowest price possible to make the most profit. Blacklisted domains or those that don’t have any demand are not worth your investment.
Register the domain name
Until now, you have found a domain that looks potential enough to be sold at a greater price than the price you are paying for it. And you have assessed its quality and value and landed at the conclusion that it is worthy enough to invest in.
Now all you have to do is simply register the domain for buying it. It is a straightforward process.
Every domain is hosted by a registrar. While buying a particular domain, you will be provided with the registrar where that domain is hosted.
In turn, you will also have to provide your registrar at the time of purchase so that the domain can be transferred to you. There are many good options for domain registrars like Bluehost, GoDaddy, and Domain.com. You must find an authentic and reliable one.
Look for a buyer for the domain
The extent of profit you make on a domain depends on the kind of buyer you find for it. You must look for a buyer who understands the worth of the domain name and thus is ready to pay you a good price (naturally much higher than what you paid for it) for it.
There are different approaches to finding the most prospective buyers for your domain:
- Buy and hold method: If you are in no hurry to sell your domain, this is a great strategy that requires patience but pays well. You just wait for the domain’s demand and value to increase and for buyers to approach you. Just put a landing page announcing that you are interested in selling the domain and wait for people to contact you.
- Auctions: This is the fastest way where you list your domain for sale and people bid for it. You can set reserve prices so that you at least get back your principal investment.
Sell the domain
This is the final bit where the buyer pays you for acquiring the domain and the ownership of the domain is transferred to the buyer’s registrar. And you are done!
Is It Still Profitable To Buy And Sell Domain Names?
Yes, because of the increased demand for online presence, branding, and marketing, purchasing and selling domain names can still be profitable. In a competitive market, high-quality domains with commercial value can command high prices.
Is Domain Selling Business Is Still Profitable For Newbies?
Yes, newbies who take the proper approach to the domain selling business can make money. Newbies can uncover profitable opportunities for selling domains and creating profits by completing market research, focusing on specialized markets, and obtaining quality domains.
How Much You Can Make Flipping Domain Names?
On average, a beginner can make $400 – $10,000 by flipping single domain. But if you are experienced domain flipper, you can make in thousands or millions due to your understanding and knowledge about the industry.
For example, in 2015, Chinese entrepreneur Zhou Hongyi, CEO of Internet Security business Qihoo 360, paid $17 million for the domain name 360.com, which was previously owned by Vodafone.
Wrapping up
The Internet is booming with thousands of opportunities for everyone out there. Now is your time to reap the benefits it has to offer. Go through what we discussed above and get started with your domain-flipping business today. Remember, the start is always small and full of mistakes and struggles. So, remember to use your patience, consistency, and skill to make it the most promising way to earn money for yourself.
