A beginner’s guide to domain name flipping
Turnaround doesn’t just apply to real estate these days. Domain names or website addresses can also be reversed.
For the uninitiated, flipping as a general trading 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.
Lately, domain name flipping has been spreading like wildfire, with tech savvy and neophytes alike engaging in this virtual venture.
Keep reading to learn the basics of this domain name flipping guide.
What is a domain name?
Domain names are often split into up to three parts, the last identifying the type of organization or country to which the domain owner’s name belongs, such as .com, .net, .org, .uk, .ph or .au . These are also known as Top Level Domains (TLDs).
Domain names play an important role in businesses. A good domain name helps startups establish and grow their online presence. It also helps to create brand awareness and attract new customers. Additionally, established businesses often purchase multiple domain names to strengthen their brand online and get ahead of their competitors. A domain name is technically a slice of the owner’s digital real estate. If you are interested, click here to understand the main concepts of this term.
How does domain name flipping work?
Domain name flipping works the same way as home flipping. Essentially, it’s buying a domain and selling it for a profit. You can wait a specific period before selling it, just like flipping a house. There are no particular calculations or guidelines as to how much you can sell a domain name, as it is often purely arbitrary. In some cases, you may get a few hundred more than the cost you paid, a modest profit by any means. If you are extremely lucky, you can get a huge windfall.
If you need more time to get started with domain flipping, browse online resources or ask a domainer for advice. Since the chances of getting huge income are slim for beginners, learn more about other online side businesses that can help you increase your income.
How much do we 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 US$872 million. CarInsurance.com ($49.7 million), Insurance.com ($35.6 million) and VacationRentals.com ($35 million) round out the top three, the same company noted.
One of the important skills you need to master is identifying a valuable domain name. As you can imagine, finding domains to buy can be tricky because you can’t physically see and touch what you’re buying. However, you’d be surprised to learn that the domain name business also includes brokers, consultants, and domainers (or domain swimmers).
Generally speaking, getting started with domain flipping is easy. But it can be quite difficult to master, which makes it a high-risk and highly rewarding activity, like investing in the crypto market. Fortunately, there are several resources and apps you can use as a reference for successful domain name flipping.
How much do you need to buy a domain?
Registering a domain can cost between $2.99 and $10 per year, depending on the provider you use. With these very affordable “investment costs” and the high profit potential, it’s no surprise that an increasing number of individuals are using domain flipping as a side hustle.
How to Determine a Potentially Valuable Domain Name
The sale price of domain names is most often unpredictable. However, some argue that keywords with the most searches, as well as those with .com extensions, generally bring in the most money. While learning how domain flipping works, you can use tools that can help you assess the value of domain names. Similarly, you can view the purchase price history of publicly reported domain purchases using analytics apps.
Where and how to buy a domain name
Several domain registrars are available online and you can also buy domain names from them. As a general rule, website addresses ending in .com remain the most profitable, although you can also purchase domains with other extensions.
“Domains” often register a new domain, buy a discontinued domain, or buy one from other resellers. If a flipper can think of a domain name with earning potential or spot a promising name in the neglected domains list, they buy it and wait for the perfect time to resell it. Additionally, an investor can buy a used domain from sellers who trade it at a lower price.
Although domain name flipping can be lucrative, it should not be viewed as a get-rich-quick scheme. Be patient and start small. Develop a keen eye for domain names with the highest potential, perform due diligence, and dedicate the time and effort to success.