What are some money generating websites

Domain Flipping: Buying and Selling for Profit

After just about two years of increasing focus on the online content and technology arena, I realized that in many ways digital businesses can reflect very traditional operations. Take domain flipping for example, which I think is similar to property flipping.

Real estate flipping is when you buy a property like a house or apartment for a good price and resell it at a higher price. Domain flipping works on the same principles and can be amazingly profitable, if not more, as well.

Here are some examples of domain names that have been flipped for massive sums of money.

These figures look wonderful, don't they? But before you go shopping and buying domain names like crazy, there are a few things you need to know about the domain flipping business.

Learn how to estimate the value of a domain name

Buying domain names isn't as easy as looking up random names and hoping they all go up. In short, there is subtle art and a bit of science behind the madness. The best domain pinball machines bring a lot of thought and knowledge to their purchases.

If you think a domain price tag is like gambling, you are wrong. Experienced domains go through a domain evaluation process before investing. Several professionals and companies offer this service. The rating is based on parameters such as age, length, search popularity, ecommerce potential, and likely future rating.

These are factors that you need to consider:

1st extension

The .something is the extension of a domain name, also known as a top-level domain (TLD).

Not all TLDs are created equal and some are more valuable. When looking at TLDs alone, a country-level domain (e.g. .za) would not be as valuable as a standard .com TLD.

2. Length of the name

While ThisSpaceForSale.com sounds like a good idea, shorter domain names often call for premium prices. Take sex.com, for example, which sold for $ 13 million. A single word domain often comes at a fantastic price.

3. Composition of the domain name

Similar to the above, it is better to use a domain name that does not contain hyphens or other unusual characters.

4. Existing similarities

To fall back on the principle of the willing buyer, the willing seller, the value of a domain must have a potential buyer. Take into account the permutations and possibilities of similarity the domain name you are interested in has and compare it to potential buyers.

5. Pizzazz

Usually when buying their own domain name, people are encouraged to choose something quickly. The reason for this is that it has pizzazz. I refer to the appeal of a domain name as "pizzazz" as that is the potential of a brand.

Think of Nike, for example. short, sweet, and now a multi-billion dollar global brand.

There are, of course, other considerations when choosing a domain name to buy. So, a little research and experience is fine before starting your new domain flipping business.

Domain flipping comes with some risks

As with property flipping, there is an inherent risk with domain flipping. I'm sure there are those out there making money domain flipping, but to be honest, hitting the jackpot with a name is really a touch point.

Even worse are those who are unwilling to prepare for the deal and end up with a bunch of Albatross domain names. These are domain names that you can't even pay someone to take your hands for.

Let me get that straight: Like any other business, domain flipping requires knowledge, experience, and a bit of luck. Don't go into business and expect to become a millionaire overnight!

Prepare as if you were in some other business. Know the trade, know your own limits, know your capital requirements, etc. In short, treat it like a reality rather than a dream.

First steps

As mentioned earlier, knowing the potential value of a domain name is an invaluable skill. By sticking to basic guidelines like those listed above and doing some of your own research, you can choose names that give you a higher chance of turning them over more easily. Remember, a net profit of $ 100 is still a profit to start with somewhere.

Aside from places to buy and sell domain names, there are a few companies that support the domain flipping business. GoDaddy is one of the bigger names out there. There you can not only swap domain names, but also park the ones you have bought. Buying, parking, and selling is relatively painless and all you have to do is give up a small percentage of your selling price.

Size does matter

To take part in the domain flipping game, you need to be prepared to have a significant number of domain names in your portfolio. These domain names need to be parked properly so that if you sell a fraction of them, the other domains can give you some revenue.

Make sure users know that your domains are for sale and what the price is! You won't believe how many people I have come across who have just bought domain names and sat on them hoping for a sale. How, I have no idea. So make sure you don't make this mistake and list your domain along with the right price.

Know the right price for your domain.

Not an easy task, but this will ensure you don't get burned on any deal you make. Many factors can be taken into account when calculating an estimate, such as the value of the name, the potential market, and more. Some companies like SmartName can help you evaluate your domains but are a little picky about accepting customers.

On the other hand, GoDaddy has a free domain valuation tool that is open to everyone. I recommend you try it out first and maybe use something similar as a second opinion. It helps with the learning curve.

Mirror your domains

1 - How do I buy domain names?

There are domain names and there are Domain name.

The difference is that you have to buy the latter from websites that specifically target domain names that are already domain name owned. Something like buying a used property from another buyer rather than the developer.

Domain Market Place

There are two good examples of places you can already buy domain names, Namecheap and Los Papa. Both sites have domain marketplaces that are comparable to real estate listings. You can browse and buy them on this marketplace.

Premium Domain Market

Another alternative is Brand Bucket which offers a more selective choice of premium domain names. These domain names are specially selected by domain name providers and can be a very useful resource if you are looking for something unique.

Another example of a high quality domain name source is BuyDomains.com which lists the cream of the crop. You can simply enter the domain name you want through this site. Even if this is not available, it can make purchasing easier.

Note: My dear colleague Azreen Azmi has been talking about How to Buy a Domain Name From an Existing Owner Here - Read It for a step-by-step guide on how to buy a used domain.

2 - Selling domain names

The direct approach

Just like selling a car, you can reach out to potential buyers and act like the used car dealer. This takes some research and work, but it could be a great way to get rid of a niche domain.

For one, you can target your selling distance and tilt it correctly. Second, because you know it's a niche, you can raise the price a bit. By selling the domain directly, you don't have to pay a surcharge to a middleman like a domain marketplace.

Domain marketplaces

Just like a property listing, aside from much simpler ones, domain marketplaces are basically massive lists of domain names for sale. The process of using it is simple. Buy a domain and park it. Then list your domain on the marketplace at a price you are willing to let. Once the domain is sold, the marketplace will cut it and pass the remaining balance on to you.

Different domain marketplaces charge different commission shares and have their own terms and conditions. For example, some require exclusivity. So if you list a domain with them, you will not be able to list it anywhere else. Here are some domain marketplaces to check out. Take some time to find one that suits your needs.


Website: https://www.flippa.com

A website that calls itself an entrepreneur's marketplace, from Flippa, you can get more than just a domain name. In fact, you can buy an entire business online through Flippa by browsing as many 5,000 new stores and domains sold here every day.


Website: https://sedo.om/us/

Sedo is more than just a marketplace for domain names. It enables you to use the services of a domain name broker. These experts can help you find the right domain names not only for your business, but also for marketing or campaign-specific domain names.


After reading through what I have written here, I hope that you will take away the key element that I was trying and that is realistic. It is absolutely not a problem to have high expectations and dream of Our Lady, but act sensibly as a whole.

If you respect the domain flipping business and treat it like any other money generating business you would be a part of, you stand a great chance. As long as you stay afloat in business, there's always a chance that ten million dollar sales will fall into your lap one day!

About Timothy Shim

Timothy Shim is a writer, editor, and tech geek. He started his career in the information technology field and quickly found his way into the print media. Since then he has worked with international, regional and local media outlets such as ComputerWorld, PC.com, Business Today and The Asian Banker. His expertise lies in technology from both a consumer and business perspective.