According to GoDaddy, the most expensive domain name ever sold was Cars.com, worth $872 million. Most recently in 2022, Place.com was sold for $3 million.
A domain or domain name is important for your online presence as it gives you an instant brand and credibility. If a domain name matches your business name, it reinforces your brand and makes it easy for your target audience to remember and return. Likewise, it has an impact on search engine optimization. If your domain name is closely associated with the products or services your potential customers are searching for, then chances are you will rank higher in search results.
This importance of domain name has made domain flipping an ever-growing industry. However, converting domain flipping into a profitable strategy requires a considerable amount of time and energy. We’ve designed this guide to walk you through steps on how to become a domain flipping expert and earn big bucks by means.
What is Domain Flipping?
Domain flipping refers to purchasing a domain at a lower price with the purpose of reselling it at a higher price. You can buy a domain name for $10 and resell it for $300, $1000, or even $100,000.
You might be wondering why would anyone pay millions for a domain name when they can get alternatives for merely $10? That’s because those domain names can make a difference. People buy already registered domain names (even for millions) because they are brandable, closely related to their products/services, or match their company name.
How to Become an Expert Domain Flipper?
Below are four simple steps to buy the right domain names and make some huge bucks flipping those domains.
1. Learn to Calculate Value of a Domain Name
To become an expert domain flipper, you must be able to spot if a domain is worth buying. There are certain sites you can use to get insights into a domain’s value. For example, NameBio maintains a database of over one million domain sales (as of date). You can use filters like keywords, category, price range, and domain length, etc., to narrow down your search. Flippa’s “Domains for Sale” and “Recently Sold Domains” can also help you get similar data.
2. Find Good Domain Names for Flipping
This is the most crucial step. Here’s what you need to consider for finding a good domain name:
Length- Short domain names (3-4 words) sell better. That’s because they mostly serve as an exact match for a brand.
Brandability- Words that are easy to pronounce, search, type, and remember are more valuable. For instance, voice.com and funds.com.
Expired domains- Expired domains or domains with old names have a higher price tag. Likewise, domains with good SEO metrics and traffic have more value.
.Com extension- Domain names carrying ‘.com’ extensions are most popular and valuable, such as Facebook.com. The .net, .org, and .io extensions follow.
Local- Look for local domain names as they have great value for local businesses. For example, Texaslawyers.com.
Relevance/keywords-friendly- Consider domain names containing words relevant to the business.
Every domain requires yearly renewal to maintain its ownership. If you don’t renew a domain, it is considered an “expired” domain- a domain with age, traffic, and SEO metrics. Usually, domains with high domain authority (DA) and page authority (PA), and a high number of backlinks have more value.
An expired domain is usually a bit more expensive than $10 so make sure to scrutinize it to avoid the risk of overpaying for it. The domain was used before, but you never know for what purpose and why it isn’t renewed yet. It could be blacklisted in search engines, could have been used for spamming, could have been banned from Google Adsense, or it is just dead in a way or another. So make sure to do your homework to find expired domains that are worth it.
3. Register the Domain Name
You can buy and register a new domain to your name with sites like GoDadyy.com and Namecheap.com for as low as $10. For expired domains, you’ll have to purchase them through an auction or a flat fee.
4. Sell a Domain Name
There are lots of ways to find potential buyers and sell your domain name to them. Some of them are:
List on domain name marketplaces- This is the most common and easy way for flipping a domain. List your registered domain name on sites like GoDaddy, Flippa, Empire Flippers, and Sedo.
Make info public- Make sure your domain is reachable to potential buyers. For this, your WHOIS privacy should be set to public so that your prospects can contact you. It also makes sense to create a landing page for your domain with a clear call to action (CTA) to encourage direct offers.
Pitch direct clients- Reach out to potential buyers who might be interested in buying a domain from you. For instance, if you have Newyorkhotel.com, it makes sense to pitch that domain to hotel owners in New York. You can use directories like Yellowpages and Yelp to find potential buyers.
Pro Step #5. Work with a Domain Brokerage
If the domain name industry seems complicated to you, it’s always better to take the help of an experienced domain brokerage. They can help navigate you through the industry and make the acquisition of your desired domain name easy for you. From finding an ideal domain name and negotiating the price to completing the paperwork, domain brokers do it all for you.