Buy and sell domains just like properties
Domain Names are commonly known as digital real estate
Domain Names are commonly known as digital real estate and can be flipped just like properties -- sometimes for much more money than actual buildings!
The best part is you can buy domains for just $1.00 on 1&1 and sell it for hundreds or sometimes thousands of dollars in the future. There is not many investments where you can see returns of 100x, 1000x or way more!
However, this business only works if you have the knowledge and practice to do it successfully. Keep reading to learn which $1.00 domains to buy and how to sell them for huge returns...
Income Potential: Medium/High
What is domain flipping?Domain flipping involves buying a domain name, then reselling it for a higher price.
Every single business and future business NEEDS a domain for their website. For this reason thousands of domains are bought and sold on different marketplaces every day.
Is this for me?Finding great domains and then getting someone to buy it takes skill, patience and a bit of luck. If you want to start this business here is what it requires:
- Lots of time researching
- Some capital required
- A willingness to learn what a good domain is plus learn many nuances in this business
- Must try again and again to find buyers for your domain(s)
- Must have a good strategy and long term thinking. Some domains can take months or years to sell.
- (Optional) - Should learn how to set up websites, get traffic, build SEO etc to increase the value of your domain(s)
Pros of Flipping Domains
- Easy to get started
- Domain names are cheap ($1 for the first year)
- There are many valuable domains still out there
- Potential for high returns (100x, 1000x and much more)
- Ability to earn from anywhere with just a laptop
Cons Flipping Domains
- Can take months or years to sell
- Works best if you can buy tons of domains, which takes more capital
- Noguarantee that they will sell high or sell at all
- Picking good domains is not easy
- Building significant earnings takes time
- Have to actively find buyers
How do you buy cheap domain names?If you feel the pros outweigh the cons, then it’s time to hunt for some cheap domain names. We’ve put together our top three domain name websites below:
1. 1&11&1 is by far the cheapest domain site - at least for the first year. You can get a .com domain for just $1 in the first year, and $15 every year thereafter.
2. GoDaddyOn a close second place is GoDaddy with .com domain names for $2.99 in the first year, and then $11.99 every year thereafter. You can also bid on expiring domains on the GoDaddy website and cop a good deal!
Want more? Check out this list for more cheap domain name registration sites to shop around on.
How Does It Pay?Realistic prices you can expect to sell domains for are 100-$5000. This is a good return if your domain costs $1-$15 to buy. However, there are many variables that come to play and your domain might not sell at all. This depends on your experience.
Also, most flippers hold lots of domains at any given time. So for each one you sell, there will be many more that aren't sold. You must factor in that domains take months or years to sell. That's just the nature of the business. So even though one sale can be huge, there will always be many domains you're paying for at any given time.
The better you are at buying quality names, advertising to buyers, and strategizing, the more successful you will be.
One major upside is there are buyers at every price point. For example, in 2010, the name ‘insurance.com’, sold for $35.6 million! And there are countless examples like this. Although you probably won't hit a goldmine like that it shows you the sky is the limit.
How long does it take to sell a domain?According to Brandpa, the average Sell-Through-Rate (STR) is 1-3%, which means that the average domain flipper will sell between one and three domains per year if they have a portfolio of 100 domains.
However, you can get your STR much higher than 1-3% as you gain more knowledge. For example, by just being a more active seller you can boost that number up to 6.6%.
The main things that will affect your Sell-Through-Rate include:
- Your asking price (often times beginners price way too high)
- The quality of your domain name
- How many ads you're posting and how hard you're trying to sell it
How do you value a domain name?You should learn how to evaluate a domain name before you jump head-first into buying one. Fortunately, there are some key indicators of a domain’s value you can use to qualify it.
Look for the following when you shop around for valuable domains:
- Extensions - popular domain extensions like .com tend to be more valuable.
- Traffic - domains with existing traffic can be sold for much more than new domains.
- Spelling - correct spelling (unless it’s intentionally misspelt) is a must.
- Length - The shorter it is the better it is usually.
- Keywords - domain names with popular keywords are worth a lot more because they will already be receiving traffic.
Where can you sell domains?You should look into some of the many domain marketplace websites where there are potential buyers already waiting.
Here are a few domain marketplaces you can use:
Many buyers also prefer to just see the price rather than having to make an offer -- so it can work in your favour.
Want more? Check out this list of domain marketplaces and join this Facebook group.
How to Make More MoneyLet’s go over some additional tips for domain flipping success so you can make the most money from it.
1. Watch out for discountsYou can get cheap domain names even cheaper if you keep an eye out for discounts, vouchers, and promo codes. You can, for example, get up to 85% off GoDaddy domain names.
2. Buy expired domainsExpired domains can have a good PageRank and draw existing traffic, which means you can sell them for more money. Check ExpiredDomains daily to see which ones are available.
3. Set up website hostingYou can increase the value of the domain by hosting a website on it. One domain flipper did exactly that and added a 3,000-word SEO blog post to boost the traffic to the domain.
4. Use affiliate linksIf you’ve set up a website for the domain and added SEO content, then you should use affiliate marketing links to point visitors towards an e-commerce website for extra revenue.
5. Set up a sales pageYou can also use the front page of your website to pitch the domain name to interested buyers. Tell them why coffee.shop will help them get more customers to their coffee shop.
6. Build complete websites
7. Park your domainsAnother way to make some extra revenue is to park your domain. Parked domains can earn money from the Google AdSense network, which could cover the annual renewal fee.
How can I learn more?If you want to master the art of domain flipping, then it’s important that you educate yourself on all the different strategies. There’s no need to reinvent the wheel - use what’s already out there!
Click here for free YouTube tutorials that give you specific, step by step. advice to making money flipping domains.
Here are some of the best domain flipping guides we’ve been able to find:
How To Get Started...You should now have a good idea of what’s involved in domain flipping. Just to recap, here’s what you need to do next to make domain flipping your next side hustle:
- Browse 1&1 for promising domain names or any of the other platforms.
- Subscribe to coupon websites like Coupons.com for heavy discounts on domains.
- Keep an eye on ExpiredDomains for domains that already have traffic.
- Familiarise yourself with the GoDaddy, Flippa, and Sedo marketplaces.
- Read free domain flipping guides mentioned earlier.
- Take a domain flipping course to cut your learning curve.
- Implement our tips earlier to increase the value of your domains.