Domain Flipping 101: How Can You Profit From It?

Domain Flipping 101: How Can You Profit From It?

If you haven’t heard of the term “domain flipping”, it’s alright. You’re not alone. So today, we’re going to talk about this, and how to make money from it.

In a nutshell, domain flipping work just like your usual online buy-and-sell business. This time, you’re not buying and selling physical goods, but rather, domains.

In this topic, we’ll discuss how you can flip domains, how much do you need to start flipping, and how much income can you earn while doing so.

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What Is A Domain?

Domain Flipping 101 - Domains 1

According to Wikipedia, a domain, or be exact, a “domain name”, “is an identification string that defines a realm of administrative autonomy, authority or control within the Internet”.

In simplest terms, it’s the name of the website itself. These names are what you type into your web browser, in order to access a particular site. For example, “Beastpreneur.com” is the domain name of this website. Thus, to visit this website, you have to type in “Beastpreneur.com”.

But a domain doesn’t just serve as the name of the website in question. You can say, domains are like a home address for your website. Once you secured your own domain, it’s completely yours. And no other website can claim that domain name. For this example, the “Beastpreneur.com” domain is exclusive to this website, and can’t be claimed by anyone else.

Domain names usually end with the extension “.com”, “.net”,, and “.org”. But there are also domain names that are usually reserved for specific industries (.gov, .edu, .aero, .xxx), and there are even others who are specific to a certain country or state (.ph, .in, .us, .io).

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Domains ≠ Website

Keep in mind that a domain and a website are two different things. A domain functions as the name and address to where your website can be located. While your website itself is where you host your web pages, media, etc. Therefore, you need to register both separately.

If you want to know more, watch this video:

What Is Domain Flipping?

Domain Flipping 101 - Domains 2

Domain name flipping, usually shortened to “domain flipping”, is the buying and selling of domains to the open market. It works like your usual buy-and-sell venture.

You buy a domain name at the lowest possible price, then you sell it to the one with the highest offer. You don’t need to do anything to your acquired domain for this to work. In fact, it’s better that you don’t do anything to it at all.

Optionally, you can create a landing page so potential customers will know where to contact you for the transaction.

It’s extremely similar to real estate trading, wherein you buy a house as cheaply as possible, and then try selling it to the one with the highest offer. The obvious difference is that all transactions are done online.

Why Should You Try Domain Flipping?

If done correctly, flipping domains could be one of the most lucrative ways to make money online. Because the barrier to entry could be as low as $10 per domain, yet you can potentially earn thousands or more, just by domain flipping.

But flipping domains may not be for anyone who needs quick money. While you could theoretically buy any number of domain names for a few dollars or less, and keep them, selling them as soon as possible is another story. You could be holding a domain name for several months and you may still not be able to find a good offer for your domain. But as you gain experience in this industry, it’s entirely possible for someone to make a profit from domain flipping, mere days after you bought the domain.

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How Much Can You Earn From Domain Flipping?

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How much can you earn while flipping domains depends on several factors. The chances of earning millions from domain flipping may be slim for the average person, but it’s certainly not impossible.

GoDaddy.com has a list of the most expensive domain names being sold on the market ever, which can be found here. And while the odds are slim for most people at best, it’s not unheard of for some domain flippers to earn upwards of a thousand dollars, sometimes even more. And the best part? They spent as little as ten dollars to achieve that.

Risks Of Domain Flipping

Flipping domains does still pose some risks, however. It’s not unheard of for some people to spend thousands of dollars on a domain, only to end with no profit from it.

Fortunately, the risks involved can be mitigated if you plan this carefully. Remember, despite all the fantastic figures shown here, it’s still not a “get-rich-quick” scheme. Especially if you’re starting out. At best, try to stick to buying lower-priced domains first, then selling them for a modest figure. As your experience in domain flipping grows, you can increase your budget for this, and then you can start shooting for those potentially high-valued domains.

Domain Flipping Guidelines

Domain Flipping 101 - Laptop Typing

Interested in domain flipping yet? Here are some of the guidelines that you need to keep in mind before you enter into the world of flipping domains.

Make Note Of Your Budget

As said before, you can start with as less than ten dollars in flipping your first domain. However, if you’re starting out, it’s highly recommended that you start with at least a few hundred dollars for your budget. This will allow you to purchase at least more than one domain, thereby increasing your chances of flipping.

As your experience with domain flipping grows, and you’re knowing the tricks of the trade, you can safely increase your budget even more. This will allow you to shoot for those higher-priced, but potentially more valuable domains to flip, thus earning you more money.

But always keep in mind to “invest only what you can afford to lose”. Unless you’re experienced enough to actually reel in the big ones here, treat domain flipping as more of a side hustle.

Places To Flip Domains

Of course, before you can start domain flipping, you must know the places where you can start.

Find A Good Domain To Flip

Obviously, you can’t just buy any kind of domain and expect it to sell. Instead, take note of these several qualities to keep in mind when choosing domains to flip.

GoDaddy.com is the de-facto source for new and available domains for you to flip. But for expired domains, you may also try looking at ExpiredDomains.net and JustDropped.com.

For selling your domains, Flippa.com is, once again, the de-facto place for it. Though you can also place your domain over for auction at GoDaddy.com, if you want.

Name Length

This is the most obvious quality to take note of when buying domains. But in general, shorter-named domains are the most expensive ones because they’re most easily remembered. Keep in mind that the value increases exponentially the longer the name is. While the difference in the value of a 3-letter domain to a 4-letter one is significant, a 7-letter to an 8-letter domain won’t have much value difference.

Domain Extension

As with domain name length, those with the “.com” extension tend to be the most valuable domains out there, because they’re the most common types and easily remembered. But if the “.com” extension for your domain of choice is already grabbed, “.net” and “.org” extensions closely follow suit in terms of value.

But you may want to prioritize shorter domain names over domain extensions because nowadays, internet users are getting more and more familiar with several newer extensions that are otherwise unfamiliar before. Therefore, if you feel like a short-named domain with an unfamiliar extension may hold more value in the future than today, don’t hesitate to buy and hold it until such time.

NOTE: Being able to tell potentially high-valued domains from junk is a skill that takes time to develop, but is certain VERY IMPORTANT.

Localized Domain Names

Localized domain names may also prove to be viable candidates for domain flipping. Compared to other domain names, you may face less competition from other buyers, but they can still prove to be valuable depending on which type of business is looking for them.

For example, the popularity of “cars.com” means that it’s almost impossible for you to get it. But getting “YourCityHereCars.com” may prove to be an almost equally valuable alternative because of the nature of the industry.

New And Expired Domains

There’s a saying that “Strike Whilst The Iron Is Hot”. The same can be said for new domains. Some new domains may have promising opportunities in the long run. So if you think that a new domain name may have potentially high values in the long run, don’t hesitate to grab it when the price is still low.

The same can be said for expired domains, with a few additions. They’re relatively even cheaper than other domains available, and since they’ve been used before, they already have some web traffic built-in. In the case of expired domains, however, you should also do some research of their history, backlinks, how was it used, etc, before being purchased. They could have some sort of illegal activity history, used for spam, etc.

Also, keep in mind that no matter how tempting it is, you should NEVER attempt to flip domains with a patented trademark. You will face some legal consequences if you chose to.

You can know more on how to find and buy expired domains by watching this video:

Don’t Sell Your Domain Right Away (If Possible)

Once you purchased a domain of your choice, it’s advisable that you hold on to that domain for as long as you can. Depending on the domain, they could easily go up in value over time. Therefore, if you sell your domain in a hurry, you may miss a profitable opportunity.

Keep also in mind that domains are equivalent to online real estate. Chances are, the longer you hold on to them, the higher the value that they may gain. However, if you’re just starting out and only wanted to flip domains for experience, it’s okay to just sell them as soon as you’re certain that their value has gone up.

Finding A Buyer For Your Domains

Now that you have your domain, it’s time to find a buyer for it. Finding someone who will pay more than the original price of the domain can get a little tricky. So here are some suggestions on how you can find a buyer effectively.

  • Marketplace Listing: This is the route that most starting domain flippers will want to do. As said before, Flippa.com can be one of the best places to list your domains for sale. However, other online marketplaces do exist for this. It’s better to list them in as many different marketplaces as you can, for increased visibility.
  • Landing Page: You can also create a landing page for your domain. This is advisable for domain flippers who don’t prefer reaching out to their buyers directly, though it may not be preferable for others who want to immediately sell their domain. Don’t forget to include your basic contact information for your page, so buyers can contact you immediately.
  • Direct Selling: Of course, you can also reach out and find direct buyers for yourself. Especially if you’re aware of the niche where your domain belongs i.e. if your domain is related to cars, then it makes sense to reach out to a car-related business. To help you in your search, try to use several directories, like Yellow Pages, to find potential buyers.

Conclusion

Domain flipping may seem easy at first, but if you plan to turn into a full-time career, you need to understand the risks involved. Also, despite the huge amount of potential profits involved, you should not immediately grab for the big ones as it may incur you a huge risk of losses. Instead, try to start out small, learn the tricks of the trade, and gradually work your way up until you’re comfortable enough to manage the risk. It’s not applicable to domain flipping, it applies to any kind of business venture.

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