You’ve probably heard of the term; real-estate flipping. A process where someone purchases some real estate at a low price makes some renovations to the property and then sells it at a higher price, or rents it out with the aim being to make some profit on that property at the end of the day. That is exactly what domain flipping also means. You buy a domain name at a low price, keep it for some time and eventually sell it to make a profit.
You’re not sure what a domain is? Not to worry, domains are things you use every day to access various websites. They are addresses specifically made so humans can easily remember them rather than trying to remember IP addresses that are just strings of numbers. Domains are made up of the website name and an extension. Examples are twitter.com or even google.com. The extensions here are the .coms. There are, of course, other extensions like .edu, .gov, and so on.
Just like real-estate flipping, and as you can probably guess from the title of this article, domain flipping can be a very profitable venture. Let’s get into how you can make money by domain flipping!
Currently, there are more than 140 million domain names with the .com extension already registered. Imagine that. Only .coms, not website names with other extensions. This means is that the internet is becoming more popular (sounds impossible, right?) and a tool more people are now willing to use. New websites and domains are, therefore, registered every day.
When a business (or anyone really) intends to get a website, they very often have something specific in mind. Domain names should ideally represent the general brand or an idea they intend to pass to site visitors. And most times, they are more than willing to purchase those domain names if they are already owned by someone else.
In truth, there are only two main steps to flipping a domain. These are; getting a domain name and selling it.
For now, let’s assume you have a great domain name idea, which you believe you could flip. How do own it? Easy! There are three services we would recommend: Bluehost (best for blogs and websites), Domain.com (if you want to register a domain name without having to create a website), and GoDaddy, the largest domain name registrar in the world. For all of these services, all you need to do is search to see if the domain name you’ve thought of is available and register it in your name.
Generally, domain flipping comes with its risks, just like every other business. However, the good thing is that it all depends on you. According to SEC filings, cars.com was sold for $872 million. Not just cars.com, other domain names have also been sold for similarly insane prices; carinsurance.com sold for $49.7 million, insurance.com for $35.6 million and these are just a few. So, there’s profit to be made, but at the same time, you need to spend time understanding which domains to invest in to generate substantial profit.
Another thing to be very conscious of while domain flipping is timing. Knowing the right time to buy and the right time to sell a domain is very important. The best time to purchase a domain is just when interest begins to gather around that particular subject. For instance, if you bought a domain related to electric cars back when a lot of conversation started building around that, it would have been perfect. To sell the domain for maximum profit, it’s best to wait for when interest is at the peak, and your domain is related to an area everyone is looking to get in.
There are some factors that could increase the possible profitability of a domain name. Let’s take a look at them
Expired domains are usually very profitable because they might have some SEO value, depending on the quality of backlinks they have. Yes, by the way, domains expire if they are not renewed. When a domain is about to expire, the owners still get a 30-to-90-day renewal period. Should they fail to renew it within that time, new buyers can pick it up. This is usually referred to as domain-drop catching and, it is a very popular practice. If you would like to find some expired domains or domains about to expire, you should visit justdropped.com and expireddomains.net.
Domains are generally not difficult to maintain. After registration, all you have to do is always renew before they expire. Also, make sure to lock your domain name to prevent it from being transferred without your permission.