While most people are familiar with the term “house flipping,” they may not be as well-versed on the phrase “domain flipping.” In layman’s terms, “domain flipping” means the buying and selling of a website domain (web address) for a profit. Done right, buying and selling domain names can be a lucrative side hustle or small business.
The most expensive domain name ever was business.com, purchased by RH Donnelly for $345 million. While you can guess that this is far from the norm, there are ways to make a profit buying and selling domains. Here are some domain flipping tips to get you off to a successful start.
A domain name is much more than just the website address for a company, organization, group or individual. It is an important part of a business or personal brand. Domain names help people remember websites and serve as representations of a person or company online. A web address can be as important as the website it is associated with – it's a highly valuable asset.
Buying and selling domain names can be fun and profitable but you should know the risks of domain investing. Keep things in perspective and have the right mindset. People are making a living buying and selling domain names but the selling of high-priced domains is rare. Don't expect to make a lot of easy money.
When buying domain names for resale, start by focusing on industries you are familiar with. It is much easier to sell a domain you know would be valuable to someone in a specific business category. While many .com domain names have been registered in virtually every category, there are still many new domain extensions Available.
Domain extensions like .app, .io and .club help to increase your options. Do you know a lot about pets? Try registering animallovers.pet. Are you interested in real estate? Look for something like homebuyers.realeastate. Focusing on industries you care about and looking beyond the .com options is a great way to get started.
Domain flipping is probably a side gig for you right now. You can only invest what you can afford to lose. Slow down and take some time crunching the numbers. Whether it is buying and selling domains or another enterprise, you need to know your budget. This can sometimes be hard to pinpoint, but over time you will learn the value of domain names based on what buyers are willing to pay for them. While you are thinking big, start small. You can register a domain name for as little as $14. Use your best judgment and register a few names to see how well you can market them.
Seasoned domainers develop an instinct for calculating a domain’s value. They can look at the price tag of a domain and tell you if it is undervalued or overvalued. In an industry that requires several skills, this one is probably the most important. To develop the instinct for calculation, do your research and become familiar with the process.
Check out NameBio, which has a database of more than 500,000 domain sales. They also have an app called The Domain Game. It provides you with a domain and you have to guess whether it sold for three, four, five or six figures. In addition, you should consider looking into domain valuation companies like DomainIQ and Estibot, so you can get an appraisal to use as a reference point.
Most people in the domain game say there is a learning curve when reselling them. Learn from others in the domain space and ask them questions. Most domainers are happy to help. Check out DomainSherpa, which is a great resource for new domainers, or look into the online community and paid domainer training program at DNAcademy. Other forums include WebHostingTalk.com, NamePros.com and DomainState.com.
When you are ready to buy and register a domain name, we have you covered. But we are more than just proven domain registrars; we feature one of the easiest drag-and-drop website builders around. We also have helpful resources like web hosting, professional email accounts, search engine optimization (SEO) resources and eCommerce options to help build your domain business. You can use these resources to promote your domain name inventory online and connect with buyers who are looking for the specific names you have to offer.
You should also look into auction platforms like SnapNames and NameJet, which offer more popular extensions. While these may come at a higher cost than a normal registration, they also offer a higher potential return, making them a better option for domain investing.
While buying domain names is easy, selling them can be a challenge. That's part of the excitement and growing your domain skills will help you build confidence. Follow these tips to get started, and when you need a little help, remember that Web.com is here for you every step of the way.
Content does not constitute financial advice from Web.com Group or any of its affiliated entities.