Flipping domain names for profit is a great way to generate an extra income.
In fact you can easily buy and sell domain names for profit whether you’re in South Africa or anywhere in the world.
Furthermore, domain flipping in South Africa has given many people a viable way of making some extra money during these economically tough times.
Do Not Pay More Than You Have To For Any Domain & Take Advantage Of Special Deals Like This…
With the high unemployment rate, flipping domain names for profit is something to be considered for anyone.
However, it’s not just for those without jobs, as a domain flipping business is also a a low cost way to make some decent money online for anyone.
What Is Domain Flipping?
Flipping domain names is a lot like like house flipping.
The practice of domain flipping is to buy a domain name as cheaply as possible & to sell it for more than the purchase price without worrying about hosting or websites or any other issues.
You’ve probably heard of people buying cheap properties and then selling them quickly for a profit?
This is exactly how domain flipping works.
You find a domain that looks good & buy it at below market value and sell it quickly for a profit on the open market.
How Much Can You Make From Flipping Domain Names?
The motivation for exposing yourself to some financial risk by laying out the money to buy a domain name without knowing when, or if, it’ll sell is to make a profit.
So wanting to know how much you can expect to make from a domain flipping business is a valid question.
While domains can be incredibly valuable pieces of online real estate, many aren’t even worth $100.
There’s potentially big money to be made in the domain flipping business considering that the most expensive domain name ever sold was Cars.com, which sold for $872 million.
Us mere mortals aren’t likely to hit those kind of figures with our domain names, but if you happen to snap up a domain with massive potential, you could turn a significant profit when you flip it.
Furthermore, by flipping domains often, you’ll soon get to know what to look out for & which ones have potential, that you could easily earn a full time income from it.
5 Steps To Flipping Domains For Profit
1. Search & Identify a Potentially Good Domain
The first thing you need to do is to spend some time searching for a domain that’s worth buying – get started here…
Don’t get too bogged down with this as you’ll never find the absolutely perfect domain at the right price and you’ll never get started.
Also don’t spend too much on your first domain name as you may not recoup your money.
Therefore, in order to maximise your profit potential, you’ll need to optimise your search strategy to find a domain that’s reasonably inexpensive but potentially profitable.
There are some awesome search tools you can use to seek out those domains with profit potential.
2. Evaluate the Domain
Once you’ve identified an inexpensive domain that you think has flipping potential (excuse the pun), it’ll pay you to put in some effort evaluating it.
This is to ensure that you’re not just acting on your gut, but using actual domain evaluation factors that will give you a good idea as to whether it’s worth your while trying to buy & sell it.
7 Domain Evaluation Factors
- Length – whilst the shorter the domain is, the more it is usually worth, although this isn’t always true.
- Brandability – the domain name should be clear, memorable, catchy and make buyers take notice of it.
- Search Engine Friendliness – for a domain to be SEO friendly it should include high quality keywords, for instance, a top rated booking site for accommodation is booking.com.
- Relevance & Popularity – if it’s an existing domain it would be a huge advantage if it’s already getting targetted traffic & it’s website has a high DA (Domain Authority) which factors could demand a higher price & make it easier to sell.
- Aged Domains – if the domain was registered some years ago & has been active for a while, it could have a better SEO (Search Engine Optimization) score than buying a brand new domain name, which would be a good selling point.
- Spelling – please make absolutely sure that there are no spelling errors in the name unless it’s deliberate & used to create a brand, which could be a long shot, like fiverr.com.
- TLD – whilst the most popular TLD (Top Level Domain) is the .COM one as it’s the most recognisable, you can still target your country’s domains, like .CO.ZA, as there’s always value and markets for good ones.
3. Buy & Register Your Domain
Once you’re happy with the domain name you’ve identified, you can proceed to buy & register it in your own name.
Whether it’s a brand new name, or an existing domain, it’s usually a really simple process to pay for it online and have it registered at the same time.
However, if you’re buying it from an individual, you may want to use an escrow service to ensure that the transaction is secure otherwise a dishonest seller may keep your money without allowing the transfer of the domain.
4. Getting It Sold Quickly
Now for the hardest part, which is to sell your domain as quickly as possible for the price you expect to get.
This may seem obvious, but this step is all about finding a buyer who is willing to pay more for your domain than you did
Here are some of the best options to sell domains without hassle.
- Get direct offers – this has happened to me and is a great way to sell a domain as there’s no commission involved and the buyer has already identified as a domain they want.
- List it on a reputable domain marketplace like NameCheap.com, Afternic.com or Sedo.com
- Hang a “For Sale” sign on your domain’s site or if it’s just a domain that’s parked, make sure that it’s marked for sale with your contact details.
- Use a domain broker – this will cost a bit more but could be an option if you’re having difficulty selling your domain name.
- Auction your domain on eBay or BidorBuy if you’re in South Africa.
5. Closing the Deal
If your buyer contacts you, ensure you respond quickly.
They’re clearly interested, but if you take your time getting back to them you’re likely to lose the sale – you snooze, you lose.
If you have to negotiate the price to close the sale, it’s a good idea you do that as often the first offer is the best.
So don’t be too rigid in the price you’re wanting for your domain, however if you’re certain your domain is worth the asking price, be sure to have the appropriate information to respond with.
If you can provide facts & stats to justify your price, then you’re probably safe to hold out for it.
Once you’ve settled on a price, you can always use an escrow service for peace of mind.
Whilst going through a domain escrow service could add on a few days to the domain transfer period as well as cost, it’s worth the trouble to ensure that the transfer & payment goes smoothly.
You can start with a free .Com or .Net domain name by signing up with a reliable & reputable company like HostGator from $3.00 per month