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BizReport : Internet Marketing 101 : June 05, 2021


How to Make Money with Domain Flipping

Understand and maximize your results with domain flipping.

by BizReport

You probably know someone who buys classic cars, residential properties, automotive parts, or antiques for cheap, invests a few dollars in refurbishing and/or repairing these items, and then sells them at a higher price tag. If they're lucky, they'll earn thousands of dollars in profit. This is exactly how the flipping business model works.

Now, imagine if you could do the same with domain names. Forget about the other items/assets that require storage space, transportation, and regular maintenance when you own them.

Here, you're dealing with domain names online. And looking at a possible six-figure in profits if you purchase regularly, have an efficient strategy, and remain consistent. But, really, how does it work? Is it some theoretical concept that won't work in real life? And, if it works, how can you earn a substantial profit doing it? Here's what you need to know:

Understanding Domain Flipping
By now, you already have an idea of what domain flipping means. It entails buying a domain for cheap, holding it for a while as you wait for the right buyer, then selling it at a higher price. Buy cheap, sell high.

It's almost similar to real estate or furniture flipping, except that you won't need to make any changes to the URL in order to boost its value. Plus, you're dealing with an open marketplace.

The process of flipping domains isn't always as easy and simple as most people think-- it can be intimidating and nerve-wracking for those who are just starting out. The idea that you're going to make millions of dollars overnight while flipping domain names isn't true. So, you want to have the right expectations and mindset before starting.

The process often involves the following steps:

    Search for a domain name that's worth buying
    Evaluate the domain name (relevance, obscurity, memorability, length, keywords, etc.)
    Proceed with registering the domain
    Find someone who's interested in the domain name
    Sell the domain name

How Can You Maximize Your Profits with Domain Flipping?
Here are five tips to help you find valued domains and sell them to buyers at excellent prices.

Don't Be Afraid to Start Small
You wouldn't wake up one day and decide to start a business without first determining your budget. If your goal is to have a profitable domain flipping business, then you must do the same.

You don't really need hundreds or thousands of dollars to start flipping domains. You can start with as little as $20. No one should push you into making bigger investments right away. Start small and then gradually start making those big moves as you learn and gain more experience.
Whatever amount you have, make sure you have a budget that will guide you in making investment decisions.

Prioritize Domains That are Easy to Remember
Take a look at these domain names: internet.com, cars.com, hotels.com, insurance.com, sex.com, travel.com, and insure.com. Can you see anything common about them?
Yes, each of those domain names is a .com domain, is short, and uses actual words. Plus, you can easily type and remember them. No wonder they're some of the most valuable domain names ever sold. No matter the industry or niche, prioritize short domain names as they are inherently more desirable and valuable. Also, consider buying .com extensions.

Work with a Domain Broker
You've probably hired a skilled or more experienced professional to help you with something before. And one of the reasons you chose to give them the job, as opposed to doing it yourself, was to help you navigate a complicated and confusing process. Eventually, you got the job done.

Back to domain flipping. The truth is that the flipping process isn't completely devoid of technical obstacles and inefficiencies. And this is where a reputable domain broker comes in. As mentioned, this process can be intimidating and nerve-wracking for anyone who's just starting out. As such, working with an experienced domain broker can make the entire process easier, helping you navigate through all the unknowns.

Not only do reliable domain brokers have a wealth of industry experience but also understand the market and can handle negotiations more efficiently. Working with one will protect your anonymity, increase your chances of finding the most suitable buyer, and save you time and money. These are professionals who earn a substantial income with domains-- and they'll help you do exactly that.

Find Domain Names with Hot Keywords
Assuming you want to create a vacation-related website, which domain name would you choose? Chances are you'd prefer domain names with the word vacation or phrases related to it. This is the same approach buyers are likely to take. Therefore, it's important that you prioritize "keyword rich" domain names.

But how do you find these keywords? And how do you know buyers are interested in those keywords? Google Keyword Planner is one of the best tools you can use to find the most popular keywords before you can come up with related domains.

Choose a Profitable Niche
Think of domain flipping as a business. No one succeeds in a business they're not knowledgeable in. You wouldn't start selling real estate when you have no idea how that particular industry works. In the same way, you wouldn't start flipping domain names in a niche you have zero knowledge about. Even if you did, you'd be at a disadvantage.

If you are an expert in a particular field or industry, you should leverage your knowledge and find domain names related to that industry. You want to keep yourself focused on a niche or market you're knowledgeable about. This will make it easier for you to effectively pitch and negotiate with potential buyers.






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