How Domain Flipping Works
By Janette Novak
SEPTEMBER 4, 2019 – IT’S important to be crystal clear about what a domain name is and isn’t. The Domain Name System (DNS) is comprised of directories of unique names that are translated into internet protocol (IP) addresses. In layman’s terms, your domain name is an address on the internet. It identifies a unique entity that points people to a specific web presence. Domains can be similar, but they are never identical.
A domain name is not the same thing as a website. A domain name is just a string of characters that identify a one-of-a-kind address on the web. A website, on the other hand, is a collection of words, images, resources, and multimedia content that are posted on the internet under a domain name.
Domain flipping is exclusively about buying and selling domains. When you flip domains, you’re transferring ownership of the domain name and not any website content that is now or could have been once related to that name. Website resellers buy and sell both the domain and the website content related to that domain name.
Domain Flipping Is Simple, But Not Necessarily Easy
Domain name flipping is really as simple as it sounds: you buy a domain for a low price and try to sell it at a significantly higher price. The better you become at buying domain names with the great resale value, the more money you can make. Just because domain flipping is a simple business concept, though, doesn’t mean it’s easy.
There are many steps to successful domain flipping. You must understand what types of domains are most profitable, how to research new domains to buy or find expired or existing domains to purchase, and how to locate buyers willing to pay a healthy price for your domains so you can make a handsome profit.
Is Domain Flipping Right for You?
Domain flipping can be a full-time business, a side business, or a lucrative hobby. Before deciding whether domain flipping is right for you, it’s wise to first understand the skills and steps required to make money for domain flipping. Successful independent domain flippers are skilled researchers who sometimes comb through keyword data and domain registration sites for hours on end. They study domain sales trends, explore domain histories, and search for patterns that help them buy potentially profitable domains.
Flippers must master how to market and sell domains relatively quickly, lest they sit on costly unsold domain inventory for days, weeks, or even years. Domain flippers must also plug into possible future trends and know when they should hold on to a domain that may be worth considerably more in the future than it is in the present. Successful domain flippers are also risk-takers. You need to be willing to invest in domain names and put in the effort required to resell those domains. You can start domain flipping on a shoestring budget of a few hundred dollars, though seasoned flippers advise that you’ll probably want to invest at least $500 to $1,000 upfront to get a good sense of what works and what doesn’t.
Domain Flipping Costs & Profit Potential
Domain costs vary among domain registration providers. The most profitable domains to purchase have a .com extension. You can register new domains on Domain.com for as low as $2.99 per year, and .com domains start at $9.99. The most popular domain extension for domain flippers is .com since that is the extension most people still equate with domains, and hence, often type it in by default. You could also choose to buy other domain extensions, such as .org, .co, .io, .news, .tech, and .net. New extensions worth watching are .club, .services, .training, and .expert. You can expect to see even more added in the future. There are a few different strategies you can take when purchasing domains to flip. For optimal results, it’s wise to vary your domain-flipping strategy.
The three different types of domain purchase strategies include:
- Create a new domain: You can create and buy a new domain that’s never been registered before.
- Purchase abandoned domains: You can watch for domains that were once registered and that have been abandoned, and buy those you feel have the most promise.
- Buy a used domain from a reseller: You can buy domains directly from others who you suspect are selling them for far less than they’re actually worth.
The truth is, you can make good money buying new domains, expired domains, and
domains owned by others. Domain flippers typically use a variety of options when
amassing an inventory of domains to resell.
Domain Costs
Prices for new domains that you create yourself are often low; however, it can be difficult to come up with potentially profitable domain names that aren’t already taken. Tens of thousands of domains are registered every day. So, don’t be discouraged if you come up with several ideas that are already taken; flippers need to be relentless in their pursuit of domains that have significant profit potential. Domain Costs for .com Domains from Popular Domain Providers
Domain Provider Annual Cost for a New .com Domain
| Domain.com | $9.99 |
| DreamHost | $9.99 |
| GoDaddy | $11.99 |
| BlueHost | $11.99 |
| HostGator | $12.95 |
| Hover | $12.95 |
| Wix | $14.95 |
| WordPress.com | $18.00 |
Costs for abandoned domains and domains purchased from resellers can range from 99 cents to hundreds or even thousands of dollars. As a domain flipper, you want to have a reasonable idea of what a domain might be worth before investing big dollars on domains that you plan to flip. The rule of thumb is to be frugal when buying domains to flip, but not penny foolish.
Janette is a business growth expert and marketing strategist with more than 20 years of experience. Her expertise is highlighted across blogging, online business, affiliate marketing, and eCommerce content on Fit Small Business.
Domain flipping is the process of purchasing and selling domain names to make a profit. The goal of domain flipping is to buy domains at a low price and then sell them for a significantly higher price. Domain flippers can earn hundreds or thousands for in-demand domain names. Though rare, some domains sell for millions.
If you want to get started with domain flipping, you’ll need a reliable and affordable place to purchase your domains. You can register domains on www.Doman.com for as low as $2.99 per year, and .com domains start at $9.99. Visit Domain.com today
