A beginner’s guide to domain name flipping
These days, flipping isn’t only applicable to real estate. Domain names or website addresses can be flipped, too.
To the uninitiated, flipping as a general business move refers to buying a specific product or item at a low price, such as stocks, a house, or in this case, a domain name, to sell it at a high price in the future.
Of late, domain name flipping has spread like wildfire, with tech experts and neophytes alike engaging in this virtual business.
Continue reading to find out the basics of this domain name flipping guide.
What’s a domain name?
Domain names are often divided into up to three parts, with the last one identifying the type of organization or the country the domain owner’s name belongs to, such as .com, .net, .org, .uk, .ph, or .au. These are also known as top-level domains (TLDs).
Domain names play a significant role in businesses. A good domain name helps startups establish and develop their online presence. It also helps create awareness and attract new customers. Additionally, established companies often purchase multiple domain names to boost their online brand and get ahead of their competitors. A domain name is technically an owner’s slice of digital real estate. If you’re interested, click here to understand the primary concepts of this term.
How does domain name flipping work?
Domain name flipping works similarly to home flipping. In essence, it involves purchasing a domain to sell it for profit. You can wait for a specific period before selling it, just like flipping a house. There are no particular computations or guidelines for how much you can sell a domain name as it’s often purely arbitrary. In some cases, you may get a few hundred more than the cost you paid for it, a modest profit by all means. If extremely lucky, you may get a huge windfall.
If you need more time to get into domain flipping, scan through online resources or ask a domainer for some advice. As the chances of getting huge revenues are slim for beginners, read more about other online side hustles that can help increase your income.
How much does one stand to earn?
According to a famous internet domain name registrar and web hosting company, Cars.com remains the most expensive domain name ever sold, which was priced at USD$872 million. CarInsurance.com (USD$ 49.7 million), Insurance.com (USD$ 35.6 million), and VacationRentals.com (USD$ 35 million) roundup the top three, the same firm noted.
One of the significant skills you have to master is identifying a valuable domain name. As you can imagine, looking for domains to purchase can be challenging since you can’t physically see and touch what you’re buying. However, you’d be surprised to know that domain name trading also has brokers, consultants, and domainers (or domain flippers).
Generally speaking, it’s easy to get into domain flipping. But it can be pretty challenging to master, making it a high-risk and high-reward activity, like investing in the crypto market. Luckily, there are several resources and applications that you can use as a reference to become successful at domain name flipping.
How much do you need to buy a domain?
Registering a domain can cost as little as USD$2.99 to USD$10 annually, depending on the provider you use. With these highly affordable ‘investment costs,’ and the high-profit potential, it’s not surprising that an increasing number of individuals are using domain flipping as a side hustle.
How to determine a potentially valuable domain name
The selling price for domain names is mostly unpredictable. However, some claim that keywords with the most searches, alongside those carrying .com extensions, typically earn the most cash. While learning how domain flipping works, you can use tools that can help appraise the value of domain names. Similarly, you can check the buying price history of publicly-declared domain purchases using analysis applications.
Where and how to purchase a domain name
Several domain registrars are available online, and you can also purchase domain names from them. Typically, website addresses ending in .com remain the most profitable, although you may buy domains with other extensions too.
‘Domainers’ often register a new domain, buy an abandoned domain, or purchase one from other resellers. If a flipper can think of a domain name with earning potential or spot a promising name from the list of neglected domains, they buy it and wait for the ideal time to resell it. Additionally, an investor can purchase a used domain from sellers trading it for a cheaper price.
While flipping domain names can prove lucrative, it shouldn’t be viewed as a means to get rich quickly. Be patient and start small. Develop a keen sense of domain names with the highest potential, perform due diligence and spend time and effort to succeed.