In 2009, the domain name Toys.com sold for $5.1 million.
And they aren’t the only ones. The most recent ‘mega-million’ domain name sale was valued at $30 million.
You might be thinking this is unrealistic for the average Joe or Jane.
Buying and selling domain names is a full-time job for some and a part-time job for others. People routinely make $100 or more flipping domains.
Curious about how you can too?
Keep reading to discover how to buy and sell domain names.
What You Need to Know
Another word for buying and selling domain names is domain flipping. It’s been around since the babyhood of the internet and is here to stay.
But if you’re hoping to make some money this way, there a few things you should know first.
It’s Not a Get Rich Quick Scheme
Do get-rich-quick schemes ever work?
Invariably, people that make money quickly had prior knowledge of the industry they were in. They then used that knowledge and put in some serious work.
Domain flipping is no different. The concept is easy enough but it can take weeks or years to sell a domain. It’s not a set-and-forget deal.
If you want to make large sums of money, you’ll have to put in some work.
Know Industry Rules
Haphazardly purchasing domains will only result in you spending unnecessary money. You have to know the rules. For instance, you could get into legal trouble purchasing a domain of a trademarked name.
Further, some industries have advertising laws they must adhere to. There’s no sense in purchasing a domain that no one can use.
Know Your Budget
Domains, in general, are not expensive. In fact, you can register one for as little as $14 a year. It gets expensive when you are sitting on multiple properties.
Also, in the flipping market, people sell domains for $100+ a piece. You can purchase these to sell higher later and make a great profit. Domain flipping in this manner can quickly add up.
Every new venture comes with a learning curve. Experiment with a few names to get the hang of the industry before spending serious bucks.
Choose a Profitable Niche
Domain names continue to grow by 11 million registrations year after year. More and more businesses are looking to make a profit online. To improve your chances of success, choose a domain name from a profitable niche.
Some of these include fitness, dating, pets, and self-improvement.
How to Buy and Sell Domain Names
Now that we’ve gotten some basics out of the way, it’s time to start flipping. The steps below will guide you through your first purchase. Remember that finding the right domain names can be a tricky process. Repeat the steps as needed until you are successful.
Step 1: Use a Keyword Tool
Domain names should be easy to remember and keyword dense. This means that it should be a popular search term. Use a keyword tool like Ubersuggest or Google Trends.
Choose terms that have a high monthly search volume. Then, compile a list. Don’t be afraid to use local versions of popular terms. For example, Chicago LeakyFaucets.
You can search terms related to popular things in the media that you believe may be profitable. Move quickly on terms that are time sensitive.
Step 2: Compare Keywords with Domain Names
When you have your list of keywords, enter them into your domain service. Many have a bulk uploader option to make this part a bit easier.
The most popular TLD is .com but don’t be afraid of choosing a .org or .net if you believe it will be profitable.
Repeat step 1 and step 2 several times to get a good list of viable domains.
Step 3: Purchase the Domain
Choose the domains with the most potential. The budget you set before should dictate what you can buy starting out.
If you find a name that you had your heart set on, it may be available for auction. Sometimes people are doing what you are doing and flipping the domain for a profit. Other times, expired domain names go up for sale because people have no use for them.
Register your domains through the same web host so you can keep them all in one place.
Step 4: Find a Buyer
Now’s time for the dirty work. Owning a domain is much like owning physical property. Unless someone is actively looking for your specific item, they’re not going to find it.
There are many different methods to let people know your domain is for sale.
One method is the good ole fashion waiting game. You can wait for someone to search for your domain and contact you for its purchase. This does work but if you’re looking for a side hustle that makes a monthly income, it’s not the best idea.
The next idea is to contact companies you believe would benefit from your domain. Say you chose to go with ChicagoLeakyFaucets as your domain property. This is a genre that would be relevant to plumbers and kitchen contractors. You could reach out to them and let them know you are selling your domain.
A third method is called Domain Parking. When you do this, your domain appears online as a site with a bunch of ads and sales info. You can collect a small fee for the advertisements. This lets potential buyers know that your domain is for sale.
Another method is listing your domain name for auction. At auction, buyers and sellers come together in an online market to see what names are available.
Popular auction sites are Flippa, Sedo, and GoDaddy. GoDaddy also has a service where you can purchase expired domains.
Becoming a Domain Flipping Pro
Many people that buy and sell domain names have libraries of hundreds of domains. Before you move toward this, learn the game of how to buy and sell domain names.
Have a starting budget. This should be an amount it won’t hurt you financially to lose.
Experiment with keyword tools and choose from established niches. From there, learn about the flipping industry best practices.
As you get better, you may find your hours of work make you into an overnight success.
Click here to discover what domains are available today.