We often try to have a side business to get some extra income. Most common activities are related to the creative industry. Many offer graphic design services, video edition or copywriting. Why don’t we just sell domain (domain flipping) and make massive profits? Domains like Insurance.com, VacationRentals.com, and PrivateJet.com have each made more than 30 million USD in profits.
Sounds very attractive but how can we do that?
Domain flipping (buy/sell domain for profit).
Domain flipping is the term used for the business of buying potentially profitable domains and re-selling them after that for a profit. There are plenty of available domains thanks to the many domain extensions that appeared recently. You can search between them and get the domains that you think you can make a profit from them.
Step 1 – Budget
Think about how much money are you planning to spend. Do you want to buy many domains and sell them with little earnings or you want to try to sell domain with higher hopes? If you are starting and you are planning it as a side business, you will probably be better if you get fewer domains and for a shorter period.
Step 2 – Niche
Do you have expertise in a particular area? Do you have an idea for an awesome domain name that nobody has seen yet? Use it! It might not be the domain with the highest search volume, but it might be perfect for a specific market or region. Even if the domain you were thinking was taken, knowing niche specific keywords could lead you to success.
Step 3 – Find the most wanted keywords and phrases.
To get more money for the domain you are selling, you must find desirable names. You can use a paid SEO tool or the free Google Keyword Planner to find the most searched words and phrases. The more monthly search a keyword has, the better chance you have to sell it for more.
Step 4 – Build a portfolio of domains.
Trying your luck with just a single domain name might not be the right strategy. Try to buy at least few similar domains. This way you can show a whole portfolio of related domains to your potential clients. They might be so interested that they can buy you more than one at the same time.
Step 5 – Bring it to the public.
Now that you already have your domain name, it is time the world to see them. Find domain related forums where you can advertise them.
You can use the social networks for advertising the domains you have. You can also use the searching engines if you are betting for a significant profit.
Find buyers on Reddit. There you can find plenty of interested people.
Put your domains on an auction site. There are plenty of auction sites specifically to sell domain. Just be careful with the term and conditions of those sites. They might have a commission.
Here are a few that you can check:
Step 6 – Be patient.
It might take time until somebody shows interest. Keep calm and continue with your marketing activities to advertise your domains. If you have both interesting domains, there will be people interested. It is like fishing.
Step 7 – End of the process
Ok, so you managed to sell your domain or domains, what now? It is time to control the process. Did you earn as much as you like and how much time it took you? If you are happy with the process, think if you want to repeat it with more and If you are not, quit it or change the strategy. It is a hard business that it could take a long time to get it right.
What should you know before buying and selling domains?
Many people think just about the price in which they get the domain name and the one they are selling it, but that is not all. You should think about the price of your work too. How much time are you spending to get the profit? Put it in the calculation.
Check if you can legally buy and sell domains. What kind of registration must you have to do it in your country? Can you receive money from other countries or no? Do you need an accountant or no?
It might not be a sustainable business. Like many other freelance activities, it might not give you a steady income every month. You might get much money with one domain and later nothing for a long time. If it is your only income, plan your expenses carefully.
Conclusion about domain flipping
Now that you know how the business of domain flipping is, are you interested? Do you want to get involved with a potentially very profitable way of earning money?
If the answer is “YES!” we invite you to check out our Domain names page where you and find plenty of exciting domain extensions. Browse and find the best domain names out there. We wish you success and profitable beginning!