This is a beginner’s guide to domain flipping. Here we will show you your first move from buying a domain name to selling it for a profit.
Domain flipping in a brief
Domain flipping is the practice of buying domain names that have potential and reselling them later for a profit. The domains can be cheap with interesting names, or they can be expensive. The goal is to find interesting available domain names, and later to be able to find a potential buyer who is willing to spend the price you want.
Create a strategy for domain flipping
Domain flipping is a simple business, but if you want it to be something more than a side hustle, you need to put some time into thinking. There are a few ways to be successful:
- Choose a niche and create a nice portfolio for that particular segment. That way, you will be able to show your potential clients more than one option.
- Buy expensive, sell even more expensive. You have heard about domain names that cost millions, haven’t you? Think about which of these very expensive domains you can afford, get it and sit on it for a while until the price increases even more.
- Keywords hunting. Get domain names with some of the most popular keywords. You can bet on multiple keywords that are not connected, but they are all popular enough that people can be interested in them.
Know your budget
You can start with 5 bucks or thousands of dollars. Think very well about what is your goal and how much you are willing to spend to get it. Just like any other investment, you need to create a budget so you don’t overspend.
Search for domain names
Based on your domain flipping strategy and your budget, go on with the search. Try to find the best-value domains. It is important to check the price for renewal, too because the domain flipping business requires patience. Sometimes more than a few years for domain sale.
Evaluate your best choices think about how you will group them for later sales. Compare the cost with your initial budget and think if readjustment is required or not.
Register the domain name or domain names you have chosen. You can do it manually, one-by-one, or depending on the registrar you have chosen, you might be able to save some time by bulk register multiple domain names.
Now that you have already registered some domain names think about how they link and group them together. See them as products. You can create a product portfolio based on similarities. It will be easier for your marketing needs.
To sell them, you can use 3 approaches:
- Sit and wait. You can set your domain to domain parking. In that mode, they will have just a simple HTML page, where you can put their price and your contact information. Then you just wait until somebody finds them and contacts you.
- Direct sales. You can try to send your domain portfolio to as many potential clients as. Depending on the industry, you might find them easier or harder. Try LinkedIn to find important people from companies that you think they might be interested in and send them your offer.
- Marketplace. There are many marketplaces for domains or websites. They usually charge a sale commission, but you will be able to show your domain to a broad audience of domain searchers. It is a faster way, and it saves you some marketing effort. Some marketplaces you can try are makermonikers.com, afternic.com, websitebroker.com, freemarket.com, Sedo.com, flippa.com.
Depending on your sale strategy, you can have different marketing activities:
- You can create promotional materials for your domain flipping portfolios.
- It could be a good idea to advertise your individual domain on the searching engines too.
- Create a website where you can show all your offers and current promotions.
- Social networks might also help with promotion.
- If you choose direct sales, think about expenses related to contacting potential buyers like – transportation, phone bill, VoIP, internet, etc.
Domain flipping is a great side business, but if you really want to make a sustainable profit, you can create blogs for the domains you have registered. Start building them traffic and page ranking. After a while, you will be able to sell sites, not just domain names, and get a good profit.