Can You Make Money Selling Domains?

What is Domain Flipping?

One of the best ways to make money online is buying something at a low price and selling at a higher price. Similar to real estate or any other investment, the goal of selling domains is to get it low and sell it high.It is especially good because you don’t have to deal with inventory. I don’t join any company, direct selling or any other business where I have to deal with inventory. That’s just my preference.

domains

Definition of Domain

For the purpose of internet use, a domain is defined as an identification string that defines a dominion of organizational autonomy, authority or control within the Internet. You can’t have a website without a domain name. Like a house or business address that tells people where you live, a domain helps customers drive directly to your website. The registration of these domain names is usually administered by domain name registrars who sell their services to the public. The use of domain names in commerce may subject them to trademark law. This is a quick generic definition that serves its purpose for this post.

How do you buy a domain name?

There are many platforms to buy domain names and also some that offer free domain names. The free ones will also include the name of the hosting site. When building a website, you first must make sure that the domain name is available. Next, it’s time to register that domain name. When you register a domain name you can sign up for as little as one year, or go up to ten years. I have used GoDaddy.com and Google Domains.

Finding Domains to Buy and Sell

Domains to buy and sell

Finding names that offer a real value is no easy task. Think of strategies that the domains you buy would be a valuable asset to the buyer. Portrait someone who would profit from buying the domain in a space you are very familiar with. If this was you and someone was trying to sell you this name, would it be useful for you to own? Be honest. If so, why? If not, why? Use those answers to refine your search for names. Searching for available domain names is very time-consuming, but can be a big payoff.

How Much?

I’ve seen domain names bought for $12 go for $1000. Not a bad profit at all! Finding good domain names that aren’t taken starts with researching keywords. Enrich your web content and ad copy with the best keywords, and increase your web presence! Try a free search below.

A key strategy that I use is, I only buy domain names that I believe I can sell for a 100% profit. So, if I spend $60 I want to make at the minimum $120. Just like the stock market, there are no guarantees. I set my goal at 100% but sometimes I’ve made no profit. Also like stocks you have to figure out if you want to hold out for a higher amount or sell when you see a price you like right away.

Usually, people with low cash flow sell quicker, and the ones with fatter wallets/purses can hold out for more cash. Domain flipping is not a get rich quick business. You have to put in the work, which means time and energy. Once you buy a domain it is considered hot property and you need to aggressively pursue out buyers. It helps if you have some background in marketing, research, and negotiating skills.
There are so many domain marketplace websites you can buy and sell domain names. A few are:
GoDaddy
Afternic
Sedo
Flippa

I use GoDaddy because I think it has the biggest audience, and I’m into the quick flip.
After your keyword research, you will want to buy the domain name. A free platform that I use is SiteRubix.com. 

8 Steps to Domain Flipping

1. Set a budget.
2. Pick a lucrative niche (It’s not about what you like! It’s about what others like and what sells!)
3. Use a powerful search engine to find money making keywords. (I use Jaaxy.)
4. Find domain names pertinent to your keywords.
5. Buy new domains (previously used ones can also be profitable)
6. Use multiple sales tactics.
7. Never sell right away (it may be better to hold out for more money).
8. Be cautious of the risk involved ( like the stock market or house flipping).
This is a quick overview of another example of ways to make money from home. If you are going to try your hand at domain flipping, I suggest you start with a small budget until you gain some experience. If there is more information that you would like, or info that you would like to share about your experience, leave me a comment below.

Thanks,

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22 thoughts

  1. Hello and thanks for sharing, you have broken everything down and made buying and selling domains names so simple. You direction is easy to follow, It is amazing how much you can sell a domain for. Good information.

    1. Norman,
      Thank you for the compliment. Yes it’s crazy that some domains like Google or Bing are worth millions of dollars.Imagine, these words meant nothing before and now they’re a household name.
      Thank you for the feedback,
      Ed

  2. Hi Ed,
    This is a very thorough and informative post about domain flipping. I haven’t tried it before but it seems interesting, despite the fact that it doesn’t provide passive income.

    Buying and selling domains are very similar to buying and selling real estate. After all, websites are considered online asset. It’s the real estate online. What I would suggest is that you should build a website for that domain using tools at Wealthy Affiliate and then you can sell it for even higher price. This increases the value of that domain and hence you can earn much more.

    I just have one question. Why do you suggest that we should register a domain name for at least three years? What is the rationale? I’ve never heard of this suggestion before.

    Thanks for this awesome post anyway! Keep it up!

    1. Jerry,
      Great question about domain registration.One reason is that you lock your domain name in, preventing competitors from getting it. Another is
      you may get a volume discount on the per-year cost. According to Google,”Certain signals may be used to distinguish between illegitimate and legitimate domains. Profitable(legitimate) domains are often paid for several years in advance, while doorway (illegitimate) domains rarely are used for more than a year.”
      So, basically it’s just an extra precaution, but if your working on a small budget, a year at a time works too.

      Thanks,
      Ed

  3. I have to say that domain flipping is something I have never considered before. Sounds like there is quite the learning curve though but sounds like it could be very rewarding. I am going to have to look more into this! Does the jaaxy tool help a lot with this?

    1. Nathan,

      The Jaaxy search engine is the one that I use. I believe it to be quick and accurate when using there search analysis. And of course, the best part, you can use it 30 times for free!

      Thanks,

      Ed

  4. Hi Edward,

    Domain flipping is a lucrative business if done correctly. If you’re lucky to buy an existing domain that is expiring, you may sell it for a good money.

    I’ll do more research and might tapping to this business later on.

    Thank you for sharing great information!

    All the best,

    Nam

    1. Nam,

      There are also a bunch of expired domain names that people have let expire for whatever reason, that can be profitable.

      Thanks, and all the best to you!

      Ed

  5. Thank you very much for this informative post! What really strikes me is that you suggest registering the domain name at least three years! I really do not understand why! Could you please give me an answer?
    Best wishes,
    Rebecca!

    1. Rebecca,
      Great question about domain registration.One reason is that you lock your domain name in, preventing competitors from getting it. Another is
      you may get a volume discount on the per-year cost. According to Google,”Certain signals may be used to distinguish between illegitimate and legitimate domains. Profitable(legitimate) domains are often paid for several years in advance, while doorway (illegitimate) domains rarely are used for more than a year.”
      So, basically it’s just an extra precaution, but if your working on a small budget, a year at a time works too.

      Thanks,
      Ed

  6. So informative, and something I have been curious about for a while now. I’ve been trying to look outside the box for ways to make a little extra money, and I never thought about this. I’ve sold a domain so maybe now I should consider flipping one. Thanks for the great advice, I really appreciate your 8 step.

  7. Hi Ed. I have never thought of buying and selling domains, it is a good way to make money if you know what you are doing. Thank you for opening my eye to this opportunity, it is always good to know other ways to make a profit online. Will you be posting a more in-depth talk about this business?

    Thank you and have a happy New year!

    1. Jonathan,

      Yes, I will get more in depth with buying and selling domains. I am also going to be writing about much more ways to work from home, so stay tuned!

      Thanks,

      Ed

  8. I guess this could be a smart move to start selling domains. However, like you said, it requires time and energy, therefore is not something you get in and you will start making money immediately.

    I love this idea and I might be looking into it because I think it worth investing on. Thanks for this wonderful information that is why it is said that knowledge is power. Thanks again.

    1. Thanks Nnadmi,

      I appreciate the comments. If you have any more questions, or ideas that you would like to share, leave me a message!

      Ed

  9. I always wondered about Domain flipping especially after seeing some names I was searching for over the $1000.00 figure. Doesn’t the domain have to be expired before you can buy it or do you go to the person who has the domain to offer a purchase? Also, thank you for clarifying the 3-year rule. I had heard google takes you more seriously if your domain is for more than a year too.

  10. Hey Ed, thanks for that info. You have laid it out in a very readable format with good white space as Kyle had suggested.
    Like some of the others who commented, I wasn’t real familiar with domain buy and selling. I do remember though back when internet marketing was starting to gain momentum, how people were buying up domains that large corporations may want. Of course back then I had no idea what a domain was.
    The best to you,
    Dennis

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