TRUTHS ABOUT DOMAIN FLIPPING YOU MUST KNOW
We all use the web to create video calls, browse websites, connect with our friends and family, but not many people know the ins and outs of the domain flipping industry. Here we’ve got uncovered some hard truths on how domain flipping works and what to expect.
Domain Flipping Won’t cause you to Rich Overnight.
Yes, we all like to hear motivational stories on how some lucky ones made millions out of selling a position name but actually, this doesn’t happen too often. only a few domain names out there may be sold in exchange for 6 figure sums, so your chances of becoming a millionaire overnight are slim.
But if you’re thinking of starting a part-time business where you get domain names and sell them off for an honest percentage of profit, then it’s reasonable.
It Is an energetic Process.
Domain flipping is rarely a passive process. In fact, it’s a lively process where you may should put in some time and energy to shop for good domain names then actively search out prospective buyers. you can not possibly keep profits if you are doing not put during a few hours each day.
Domain flipping experts believe that after you purchase a website, it’s considered hot property, which implies you’ll need to undergo the difficulty of picking the proper opportunities at the proper time to seal the deal. To become a successful domain flipper, you would like people with marketing expertise still as research, negotiation and networking skills.
Domains with Similar Names are often Sold For a Profit.
Now here are some things you wish to know when it involves flipping domains successfully – simply because someone spends an infinite amount of cash on a website name doesn’t necessarily mean they’ll throw megabucks to induce an analogous name too. Never base your domain flipping strategy on such assumptions because that rarely ever happens.
Every name piques the interest of the client thanks to a novel reason and therefore the sale that follows is simply as unique because the reason why the client wants to spend an enormous sum of cash thereon particular name.
Domain Flipping Takes Time to find out.
Just like the other field of business, you wish relevant experience to become a successful domain flipper. Buying domain names then selling them at a better rate isn’t a bit of cake. you wish to remain under the radar for a minimum of a year and learn everything associated with domain flipping before you’ll start selling domains for a profit.
In the beginning, you may make several major blunders like losing money over useless domain names, missing prospective deals and far more; but slowly, you may get the hang of it.
STARTING BUDGET AND…IS IT TOO LATE?
In theory, you may technically acquire a site for £10,000 and be ready to sell it for £100,000. you may also acquire a site for £10 and be able to sell it for £100,000, £10,000, or maybe £100, you get the image.
Because of this, it’s hard to recommend an ideal starting budget because your strategy, experience, and therefore the pace at which you learn will hugely affect your buying and selling decisions.
It’s vital to take a position only what you’ll afford to lose and treat this as a side hustle till you get the momentum going.
As you gain experience, industry expertise and a few sales under your belt, you’ll then consider slowly growing your business into a full-time gig.
Now, let’s go on to some practical steps to induce your feet wet.
HOW TO BUY A WEBSITE NAME
While flipping a replacement name will be very profitable, domain buying and selling takes some steps to try and do well. And to try and do right.
Don’t let terms like “domain registrar,” “domain provider,” or other similar terms scare you. We’ll walk you thru the step by tread on the way to locate domain names with potentials, buy the correct domain names.
And hopefully make some specialized money flipping domain names.
STEP 1: DEVELOP THE DOMAIN FLIPPING INSTINCT – LEARN TO CALCULATE NAME VALUE
Try throwing some random domains at an expert domainer and they’ll be able to offer you a ballpark figure almost instantly, and more often than not, they won’t be faraway. Their experience within the space trained and wired their brains to automatically (and relatively accurately) appraise domains on the fly.
They see a domain’s tag and that they can instantly tell whether it’s under or overvalued. this is often probably the foremost important skill one should have during this industry.
Using the keyword search feature you’d even be able to familiarize yourself with what proportion domains typically cost on the average during a certain industry or niche. Even better, they need an addictive little app called “The Domain Game” available for iOS and Android.
They basically offer you a website and you are trying to guess whether it sold for 3, four, five or six figures.
You get points for every correct answer and lose points for incorrect ones. you are doing this for ages and you begin to determine patterns. Your brain starts connecting the dots and you bounce back it.
You can also use Flippa’s for similar data, here’s what it’s like:
Keep practicing using these tools and you’ll bounce back and better at it. Now you’re able to move out there and scout some domains!
This is the foremost important skill a successful domain flipper can build!
STEP 2: A WAY TO FIND GOOD DOMAIN NAMES
Finding good domain names to resell is what would typically take most of it slow. There are such a large amount of different approaches and methods here. I’ll attempt to stick with the simpler ones that are budget and beginner friendly.
But first, let’s discuss what makes a decent domain:
Length: This is pretty self-explanatory. Generally the shorter the name, the more valuable it’s. This difference in value decreases exponentially because the name gets longer, though. as an example, the difference in price between 3 and 4 letter domains are significant, while the worth difference between a 7 and eight letter domain would usually be much more modest.
Dictionary Word/Pronounceable/Memorable/Brandable: A dictionary word name is incredibly valuable. Of course, the more popular and widely used the word is, the better. for instance, “marketing.com”, “cars.com” and “hotels.com” are 7-8 figure domain names. whether or not a site name isn’t a dictionary word, being pronounceable and/or memorable and/or brandable are all big pluses that boost its value.
History: Domains that have expired or are bought second-hand from previous owners have history. Generally, the old names include higher price tags. Similarly, domains that have traffic, and good SEO metrics like DA/PA usually sell at higher price points, because the new owner is getting a pleasant SEO jump start due to the domain’s history.
Keep in mind that when there’s an overabundance of options that may lessen value. Many of those new extensions won’t be worth anything. But some have the potential to grant a large profit.
This is why developing the flexibility to inform profitable domain names from junk is so important.
WHERE TO SEEK OUT IDEAS FOR DOMAIN NAMES TO REGISTER
There are several ways to seek out ideas permanently domain names.
For instance, you can:
Browse domains that are currently selling or have recently been sold at marketplaces and directories like Sedo, Flippa, and NameBio.
Look for expired/dropped domain names on websites like ExpiredDomains.net or JustDropped.com.
Analyze market trends and search queries to seek out potential domains that are likely to be more valuable within the future.
ANALYZING MARKET TRENDS TO SPOT OPPORTUNITIES
Where do I start? So I heard about bitcoin and that i know it’s all the craze nowadays. Let’s start from there. I’ll hop on Google Trends and type in “bitcoin.”
Google Trends basically tracks the recognition of search queries over time, it’s often a goldmine for locating currently exploding or soon-to-explode topics/terms, etc. So here’s what it’s like:
BE WARY OF TRADEMARKS
Buying a trademarked name could get you into lots of plight. Best case scenario is for the trademark holder to force you into handing the domain over and call it on a daily basis. Worst case scenario is you get into a legal battle and find yourself spending an arm and a leg in an exceedingly fight you’ll almost certainly lose.
FLIPPING EXPIRED DOMAINS
So the above was a way to seek out good potential domain names and register them for $10 bucks. As discussed earlier, there’s also otherwise that’s often utilized by the experts: buying expired domain names.
So what are these other strategies anyways?
In order to take care of ownership of a website, you need to renew it yearly. If you don’t, it “expires.” An expired domain goes through several stages before being released again for general registration.
The process differs slightly from one registrar to a different but it’s more or less the identical.
GoDaddy explains what happens to domains that expire with them here.
Most registrars put their expired domains up for auctions when the grace period ends and also the owner is unable or unwilling to renew the domain. These auctions can often be goldmines for several different reasons:
An expired domain was obviously a website that was registered before. Meaning someone was curious about it. This makes it more likely to be valuable than a site that was never registered.
A good expired domain will usually sell for quite an bit quite $10. you furthermore might risk visiting bidding wars over it during auctions and losing it or overpaying for it. This makes reselling with a decent margin tougher.
Expired domain names must carefully be vetted and scrutinized. Remember, this domain was “used” before and you have got no idea what it had been used for. It may well be blacklisted in search engines, it could are used for spamming or illegal purposes, it could are wont to defraud monetization networks like adsense….etc.
SO WHERE DOES ONE FIND EXPIRED DOMAIN NAMES?
The most popular place out and away is ExpiredDomains.net. the most advantage of ExpiredDomains.net is that it aggregates data from plenty of various auctions and websites round the web. There are paid services like DomCop.
WHERE & THE WAT TO SELL DOMAIN NAMES
So here’s an inventory of the foremost common approaches people take when selling domains.
Reaching bent potential buyers directly: If you own, say BestRestaurant.com, then it’d add up to do and pitch that domain to restaurant owners. If the domain is even more niched down like BestNewYorkRestaurant.com, then you may also use the assistance of a directory like YellowPages to assist you chop down potential candidates.
Simplifying inquiry process: As mentioned earlier, making your WHOIS info public and creating a landing page that simplifies the inquiry process may well be beneficial because it encourages direct offers.
Listing on domain marketplaces:This is that the most typical route. You should, however, acquaint yourself with each marketplace’s policies and charges before deciding to figure with them. for instance, Sedo’s commission starts at 10% and BrandBucket prohibits listing the domain anywhere else if you’re selling with them.
Here’s an inventory of the foremost popular marketplaces: