Friends, in this Highly Interesting and Informative article for Innovative Business Ideas, we are going to learn – What is Domain Flipping Business? And we would be discussing 7 Amazing Tips on – How To Make Money With Domain Flipping?
What is a Domain Name?
In very simple terms, a Domain name is an address for any website/blog.
For example, your house address is associated with the house location and is used to identify/locate your house.
In the same way, a domain name is used to locate and reach the particular, associated website/blog.
A particular domain name is unique and is associated with only one website/blog.
Like, this blog has the domain name PassionateBusiness.com
It is the string of characters, which people type in the address bar, of the web browser.
Like, if you want to search for some information, then you need to go to the homepage of Google. In that case, you need to type in the domain name Google.com
What is Domain Flipping Business?
In simple terms, it is the process of buying domain names and then selling them, in order to make a profit.
In any business, the way to make a profit is–
– To Buy at a Low Price,
– And To Sell at a High Price
Similarly, in the business of Domain Flipping:-
1. You purchase a domain name, when it is available for less than the market price, Or when it is not that much popular.
2. You sell it, when that particular domain name becomes popular, it’s demand increases and consequently, you are able to get a higher price for the same.
Why To Flip a Domain?
1. In Very Simple terms, “To Make A Profit”.
According to an article in GoDaddy.com, the most expensive domain name sold till date has been cars.com, valued at $872 million.
Some domains can have a lot of demand and thus they can be quite expensive.
For example, for a website, which is dealing in cars, just think, what can be a good and easy name for the website?
Let us see some below examples:-
– Cars.com
– Buycars.com
– CarSaleAndPurchase.com
Obviously, the first choice is great, because it is super easy for people to remember the simple and short name – cars.com
Some other similar examples can be:-
– Health.com
– Furniture.com
– Dogs.com
– Cats.com
– Etc.
The above are examples of great domain names that individuals or businesses have already considered while starting a website/blog, and have already established great businesses.
The major thing is – When your prospective customers are looking for information, then they find it easier to type in simple names in their web browsers.
Just think, when a person wants to buy furniture for his home, then what are the words, which he is likely to type in the web browser?
If you already have a domain by that simple name, then most likely, the customer would be visiting your website/blog, and then you can have opportunities to make a lot of money.
Else, if you do not want to build a website/blog, then you can simply sell your existing domain to some interested person/business, and can make a good profit from the transaction.
As individuals/companies would be willing to pay top dollar for their desired domain names, and in case you already own a domain name, which is sought after by some company, then you can get a profitable deal.
So, the main objective of Domain Flipping is to make a profit.
2. It Does Not Cost Much To Start.
You can buy a good domain name for one year at close to 10 dollars. That’s right – close to $10, and you would have ownership of a particular domain name for a complete one year, wherein you can try to sell it for a profit.
Since it is pretty affordable to buy a domain name/register a domain name, so, it can be a profitable business idea with low investment (But you need to learn the basics before investing your money).
3. The Whole Process is Online and Convenient.
You just need a Computer and an Internet connection, and you can buy and sell domain names from your home.
(Most Important – You should study and have adequate knowledge about the Domain Flipping Business, before venturing into it).
You can start this as a Side Hustle Business Idea, and can work in your Part Time, but over a period of time, in case, you become good at domain flipping, then you can also consider doing it on a full-time basis.
What are the Requirements for Domain Flipping?
You Need to Invest Your Time and Energy, in order to learn this Business.
Check out various websites, (like this one), YouTube channels, etc., and try to understand most of the aspects of domain flipping, like:-
– How to Choose a Good Domain Name?
– From Where to Purchase the Domain Names?
– What is a Good Price Point to Purchase?
– How Long Do You Need to Hold the Domain Name?
– What/When is a Good Time to Sell?
– How to Sell and Get Money?
– Etc.
You should try to Learn as much as you can about “What is Domain Flipping Business”.
You need to invest your Time and Energy to gain knowledge in this field, and Once you fully learn the concepts and feel confident, then also you should try to start with the minimum amount of capital as your initial investment.
Because, success in the Field of Domain Flipping depends on your Knowledge, Skills as well as Luck.
What is the Investment Required for Domain Flipping?
You can start with as low as $10 for one domain name, for an entire year.
It is preferable to research and invest in a number of domain names and build your investment portfolio.
The reason is – that some domains might not be profitable. i.e you might not be able to get a buyer for some of your domains, but some other domains might be hugely profitable for you.
So, in case you have a good portfolio of strong domain names, then your chances of success are higher.
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How to Make Money from Domain Flipping Business?
The process is as follows:-
1. Search for a Good Domain Name.
You need to do proper research.
Don’t just jump in, and start buying domains. Treat this like a business and thoroughly understand all the points before purchasing your first domain.
This is the most time-consuming step and obviously the most difficult one. So, you need to have the patience to find the correct domain name.
Try to think of names, that are:-
– Trending.
– Do some keyword research to find out which names/combinations of names are popular.
– Names, that you think can have good demand in the future.
You can carry out your search:-
A) On the websites of various domain name registrars like:-
– GoDaddy.com
– Namecheap.com
– Google Domains
– etc.
You would be able to see if your chosen domain name is available, Or if someone else had already bought it.
You would also be able to see various options for matching names.
In addition, you would also be able to see the prices of the various suggested domain names.
B) You can also search at various online domain auction sites.
2. Potential Profit Evaluation.
Here, you need to take care of the following points
A) Potential Demand (Current/Future).
If you are lucky enough to purchase a domain name, which is in demand at present, then it is great.
Sometimes, you need to decide what would be in demand in the future and accordingly, purchase a related domain name. It might be a lottery for you, in case the particular domain name starts trending in the coming times
B) Would the chosen domain name prove to be valuable for businesses in the coming time?
This is similar to the above point. Whenever you are buying a domain name for flipping, then think about – What Value it will provide for the next buyer?
This will help you in analyzing and finalizing a good domain name.
C) Brandability.
Can the domain name be useful as a brand name for any product or service category?
In that case, there might be individuals/companies, who would like to purchase it from you, and you can make money online by flipping that domain name.
Just make sure that the domain name has not been copyrighted by someone earlier, Or which matches/is similar to any existing company name/brand name.
3. Other Important Points.
A) Domain names should be Short in Length, and Easy to remember.
Generally, shorter names are easy to remember. (But then, they are also expensive to purchase. So, you need to evaluate the profit your can make by buying an expensive domain and then selling it for an even higher price)
B) Does it have any Catchy Phrase?
This is related to the above point. People tend to easily remember the domain name, if it has some catchy phrase. Such kind of domain names can help to earn more profit.
C) Is the Domain name SEO friendly?
D) Check out the Prices of the Existing Domain Names.
Generally, the domain names ending with .com extensions remain in high demand, so they tend to be more expensive. But now other extensions are also available like .net, .co, .org , .edu etc.
4. Check Various Expired Domains.
In addition to the above, you can also consider purchasing Expired domains.
These are the domains for which the earlier owner/purchaser has stopped paying the yearly registration fees. So, these domain names are auctioned / free for anyone else to buy.
Before buying any expired domain name, you need to check various factors, like:-
A) Is the name interesting enough?
B) How old is the domain name?
C) Does it have good quality backlinks (links from established, authority sites)?
D) Has the domain been banned in the past?
In case, you can find a high-quality expired domain name, which already has a good SEO value, then you have an opportunity to make a good profit by flipping the same.
5. Register the Domain Name (Buy the Domain Name).
Once you have done your due diligence and are fairly confident about the potential profitability of the chosen domain name, then you can go ahead and buy the domain name from the website of the Domain registrar (for example – from GoDaddy.com, NameCheap.com, etc.)
A) If the particular domain name is available, then buy it from the domain registrar.
B) If the domain name is not available, but you are still willing to purchase it, then you can make a request to the current owner, to buy it.
You can register the domain name for one, two, or even more years, as desired (it depends upon your estimated holding period. ie, the time period for which you would like to keep it, before selling it further).
You would get an invoice from the registrar, mentioning the price and the expiry date/duration of the holding period.
6. Start Looking for Buyers.
Through Domain Flipping, your ultimate aim is to make a profit.
A) In case, you would like to hold on to the domain for some time, then you can definitely decide upon that.
In this case, there can be a chance that over a period of time, interest in your domain name would grow and you may be able to get a great price later on.
B) Else, you can start looking for good selling opportunities in order to make a handsome profit.
C) You can create an account/register on online auctions, where potential buyers are already searching for good deals.
D) You can also create a landing page related to your domain name, and can highlight various aspects/benefits of owning that domain name, along with mentioning the sale details and your contact details.
And in order to promote that landing page, you can make use of social media like Facebook, YouTube, Pinterest, etc.
E) In case you own multiple domain names, then you can list all of them on your landing page. In this way, the potential customers can go through your list and decide accordingly.
F) You can also directly post the details and price on your existing Blog/Website, and also on your Facebook page/ Facebook groups.
G) You also need to set a price at which you are willing to sell the domain name.
The quoted price depends entirely on you. You can quote whatever you wish, but you should do your homework and first look at the prices which are being quoted by other sellers of similar domain names/categories. Then you can have more confidence in the price, which you are quoting for your domain.
There are many websites where you can register and list your domain for sale. For example:-
– Flippa.com
– Etc.
You need to check the registration procedures and the costs involved at various websites and then register accordingly.
7. Selling the Domain Name.
Once you are able to identify a potential buyer for your quoted price, then it is a routine process of getting the payment and transferring the domain in their name. (The website where you register to sell your Domain name, can help you regarding the payments).
And then, just sit back with a cup of coffee and enjoy your profits.
Additional Business Idea.
Converting your Domain into a Profitable Business.
Sometimes, it might happen that you get a very good domain name, which you decide not to flip, but instead, you can use that domain name to further make a good website/blog.
This is also a good business idea. As the ultimate aim of starting your business is to make money, so if you feel that you can earn even more money through your Blog vis-a-vis Domain flipping, then you can consider this option also.
Read More:- Complete Guide on How to Start a Blog and Make Money Online
In Fact, Domain Flipping Business is among one of the Digital Marketing Business Ideas, which one can learn and start as a part-time venture, and based on your Hard work, Dedication, Patience, and Luck, it has the potential to make money in the long term.
Read More:- Top Digital Marketing Business Ideas to Make Money Online
So, friends, I hope that you have enjoyed the above information, and are able to derive the maximum value and benefit from this article on What is Domain Flipping Business? and How to Make Money from Domain Flipping?
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Read More:- Profitable Business Ideas for Beginners
Read More (For Business Ideas in the USA):- Profitable Small Business Ideas in the United States of America
FAQ (Frequently Asked Questions)
How Much Money Can You Make by Domain Flipping?
It actually depends. Some domains might be sold for $100, some might be sold for $1000, whereas summer might be sold for a lot more.
There are many examples, where people have made thousands of dollars just from one domain name.
For learning about Domain Flipping Business, you must invest a lot of Time and Energy to acquire knowledge in this field, and when you fully understand the concepts and start feeling confident, then also you should start with only the minimum amount of capital as your initial investment.
Because, success in Domain Flipping Business depends heavily on your Knowledge, Skills as well as Luck.
This Article has been crafted with Love, by www.PassionateBusiness.net