One of the first incredibly popular ways of making money online was the practice of reselling domains. This method is best known as domain flipping. Basically, it’s when you buy a highly brandable domain name while it’s still cheap and resell it for a much higher price.
There are thousands of people attempting to make a profit from selling domains today too. However, it was a whole lot more profitable back in the early 2000s when there were millions of available domain names for anyone to register. Today? Not so much. Let’s find out if it’s still possible to earn extra money from selling domain names in 2019.
What Exactly Is Domain Flipping?
Domain flipping requires a long-term time investment where you need to speculate about the potential value of a domain name and purchase it. Then, as the demand for the name increases, you can sell it for a profit. Being a real estate agent shouldn’t be hard to get the point, write?
You may be wondering: what increases the value of a domain name over time? Well, there are new businesses sprouting up every year — each of them needs a brandable name that can make them stand out from the competition (for example, a one-word generic name like home.com).
So, there’s a matter of supply-and-demand at work — the number of people who want a specific domain increases, while the number of unique domain names decreases, increasing domain value significantly.
It’s true that people have been getting big bucks from selling domain names in the past, but there are a few things that have changed over the past years that make domain flipping not as lucrative as it used to be:
- Unique domain name scarcity. What are the chances that you can get domain names like property.com, domainking.com, or privatejet.com at an affordable price? Slim to none. Those were registered a long time ago. Nowadays you need to think long and hard before picking an available option that’s still worth your investment. To know if a domain name is still available, you can use a domain checker, as the one Hostinger has. This one might be especially useful, as it will provide additional suggestions that might be worth your consideration. The best time to use it is a Black Friday and Cyber Monday period when you have a chance to catch the crazy domain prices.
- Google’s new algorithm makes it hard to rank fast. In the early days of domain flipping, you could easily add value to your domain name by improving its SEO. The more organic traffic a domain name has, the easier it is to sell at a higher price. Now, it takes much more time as Google’s new algorithm will require you to come up with good quality content to improve ranking.
Now that domain flipping is no longer something new, anyone can easily find out about the practices and speculate what might be worth an investment. It’s different from the early 2000s when there were only a few people getting into it and the opportunity to make a profit was still wide open. Now that more people are looking for the same kinds of domain names, get ready for some fierce competition. But the competition is already not a surprise for you, write?
So, with that in mind, getting into domain flipping today will certainly be a challenge compared to the old days. However, it doesn’t mean that you should get rid of the idea altogether. With the right mindset and proper research, it’s still possible to turn domain flipping into your money-making machine.
Starter Tips for Domain Flipping
Here are a few tips that can help you minimize the risks and maximize the potential profit when flipping your first domains:
1. Always Go for the Most Popular Extensions
There are some extensions that have a lesser demand by default, like .net or .org. Consider what kind of label and extension combination might be most sought after to improve their value. On the other hand, the fact still stands that most business owners usually will only settle for domains with .com extensions, so be sure to keep that in mind.
If you risk buying domains with other TLDs, it may be harder to find buyers or you may not be able to sell it at a profit.
2. Work with a niche you know the best
Trying to appeal to everyone usually means you’ll appeal to no one. By focusing your search on domain names that are associated with a particular niche, you’ll be able to understand more about your audience.
For example, if you’re working in the real estate sector, think of what kind of names a brand new company would like to have. Evaluating the value of a domain name will be much easier this way.
3. Research Your Keyword
Remember, SEO plays a big part in deciding a domain name’s value. Your buyers would want a name most people would include in queries. So, once you find yourself a nice domain name, be sure to check if it has a keyword with a high search volume.
4. Plan Your Budget Carefully
If you’re just getting started, you don’t want to waste too much of your money unnecessarily. True, there are some people who manage to sell their $5,000 domain name for $20,000, but this shouldn’t make you hasty on spending your money.
Nobody gets good at what they do in an instant. If you haven’t been in the industry long enough to hone your appraisal ability, limiting your budget to $500 is a safe bet that prevents you from losing money quickly.
5. Don’t Just Wait for Buyers, Approach Them!
It’s a common practice to keep your contact information public on databases like WHOIS so that anyone who’s interested in buying the domain can get in touch easily.
However, if a domain doesn’t have too much demand, you may have to wait a while until someone approaches you. You can overcome this by pitching your domain name to someone who may have a use for it.
For example, try to see if a company is advertising on the same keyword that your domain name contains. Then, offer to sell the domain to them, while explaining how it can be beneficial to their business.
If you’re still thinking whether domain flipping is still worth the effort, the answer is yes and no. But, being a real estate agent, you already know some tips about the selling process. And you already working with a particular niche, so why not earn some extra money from your knowledge?
But you should know that domain flipping won’t make you rich overnight and you should understand that it will take some time.
So, do your research and make strategic investments to see that it can be even fun and exciting. Good luck with the first deal!