A rule of thumb that I follow is when I purchase a domain name I have to believe that I can flip it for a 100% profit.  So if I spend $500 on a domain I need to feel like I can sell it for no less than $1,000.  This way, even if I’m wrong in my estimation I still have some room to still turn a profit.  And if worse case comes to worse case I’ve sold domains before for a $0 profit (it happens even to the best of us).

Many non-savvy internet users may not even be aware of the existence of other extensions. That said, because there are many new extensions popping up every now and then, you can often find amazing one word and 3-letter domain names with these new extensions that are otherwise almost impossible to find unregistered in the .com world. Additionally, these new extensions are becoming more and more familiar to users every day, hence it's almost certain that their value will continue to increase as time passes and wider adoption manifests. 
Here's an old post on search engine roundtable that claims google's policy is to discount previous backlink juice when a domain changes ownership.  I'm not convinced whether this is actually true or something Google says to discourage excessive domain buying / 301 redirecting for SEO benefit.  The comments above seem to give varying opinions on this matter. Would be great to get to the bottom of that one!
While getting a new domain name will give your site a clean slate and allow you to start a fresh marketing campaign, you may not be aware of the fact that some expired domains come with a high Page Rank value. A company that buys such a domain will not have to work so hard on website promotion and backlink building techniques. Thanks for updating this really informative post!

Surely if you purchase a domain (domain1.com) and redirect it to your existing domain (domain2.com) you expect to loose all ranking for domain1.com. If 301's are used then the objective is simply to pass on authority, not dominate the search results with 2 domains. If you want to keep domain2.com in the index then you would take Rebecca's option 2 or 3.
Acquiring what you believe may be a valuable domain name is the easiest part of the equation.  Finding the right  buyer is much more difficult. Using auction sites and forums is perhaps the best way to find qualified buyers that are interested in your domain, and using auctions will take some of the stress away from establishing the value of a domain name yourself.
Determine your domain's value. Before you start taking offers or listing your domain, take stock of its value so that you can come up with a good price. There are a lot factors to take into consideration when determining the value of a domain, so if you are unsure it may be wise to contact a company that performs these assessments. Some of the major factors include:

Hundreds of thousands of domains expire everyday. While most of them are trash, quite a few are aged domains having excellent backlinks. These can be easily filtered using metrics from Majestic (Trust Flow) & Moz (Domain Authority). These are great for your money sites or for building private blog networks. Some of these domains have natural organic traffic, that can be determined by their SEMrush rank or the SimilarWeb data. These are great for domain parking or for promoting affiliate offers.
Internet users, who try to find expired domains and re-register them, will soon discover that this plan cannot be manually accomplished. Professional domain traders are familiar with the registry deletion process and rely on sophisticated algorithms that indicate when a domain is about to become available. Deletion lists are the result of this research. You can find many datasets online with domains that have already become available or will soon be. You often have to pay to be able to see this information.

So, what I like to do is also choose DMAS listed entry. No fake or no unsure page rank. Click the apply filter button and this will show us a much better group of websites, including a lot of high page rank websites. That’s one great thing about Go Daddy Auctions that you don’t have to guess about what the rank will be which is not the case with a lot of deleted domains which, because they were deindexed they didn’t have any content, they didn’t have any hosting, they don’t have any page rank. So, you have to make an estimation.
As people who normally use internet only to check emails, shop, tweet, upload pictures, update facebook status or conduct some business, a large majority of us remain oblivious to the domain name and domain flipping industry. So, when we do decide to venture into it for some reason, it is only natural for us to carry some commonly known myths associated with it. It can also be easier than building a website from a scratch. Although with easy to follow guides relating to how to create a blog – many are choosing to go down this route and add value to their domain names rather than selling undeveloped.
If you’re patient enough, you can discover at least four to five very good .COM domain names at attractive prices. However, you’ll need to carry out some research and find out the right places where they may be available. I’ve seen that such .COM deals can also be bagged from popular domain marketplaces like Flippa.com, or from the private portfolio portals of sellers, provided you employ the right strategies. You can contact the domain owners directly too. There’s no harm in emailing them directly to negotiate the prices.

Now it’s time to transfer the domain name. Every site has its own process. Generally, the domain-selling sites require sellers to submit the authorisation code, which will initiate the transfer process. Once the transfer is completed, the seller can transfer funds from the escrow account to his personal account. Do check for the minimum number of days the amount must stay in the escrow account before the transaction can be completed.
Just because something is legal does not make it ethical. While things that are legal can and often are ethical, there are practices like domain name flipping that are not ethical. Buying a domain name without intending to use it to make profit creates an unnecessary industry which costs people money and reduces general productivity and economic growth. This is the same with all practices that cost people money but do not contribute any value, most notably corruption. If we eliminated such practices our economic growth increases and general wealth is increased because our money is paying people for things that add to our lives and our communities. This does not. Evessariky reglect badly in people who choose to engage in such practices, but is a result of regulatory failure.
Many people think of domain buying and selling to be one of the easiest methods of making quick money. Perhaps, you may have heard of someone buying a domain name for under $3000 and then selling it for $25,000. A quick $22,000 profit! Such stories can be very motivating! And that sort of money does exchange hands (Go through 10 of the biggest domain name sales of all time!). But these deals don’t come as easy as they seem! Ask anyone who flips domains for a living and he/she’ll tell you the amount of hard work and skill that goes into it.

Check DA/PA: The “Domain Authority” and “Page Authority” metrics gained significant popularity over the last few years. They seem to correlate well with a domain’s ability to rank in the search engines and hence, a domain having a high DA/PA will typically have a higher value. This is not to say domains with low DA/PA can’t sell for a lot of money because, at the end of the day, it’s just one factor. However, it’s good to take a look at these as they may tip the scale in favor of or against some buying decisions.
When you are selling a domain name, you don’t want to suffer because of failed transactions or being tricked by defaulters. Safeguard your monetary dealings; the best way to do this is to take the help of a secure domain transfer and escrow service. The escrow system is highly beneficial because a buyer has to deposit money at the trusted source prior to purchase, and the dealing between a buyer and a seller takes place through a secure domain transfer and escrow service. This makes the transaction safer for both parties with the involvement of a neutral third party.
If you know how to get websites to page one, why are you not marketing that fact to potential clients and consumers or would-be domain purchasers? Trying to get a keyword driven domain to rank high and sell it off for a profit isn't a good investment, either time wise or for the long-term success of your company. Instead, use sites that you have already ranked high as an example of how awesome you are and sign them up for a monthly fee, rather than trying to sell them a "make money now" domain.
Prospective buyers can contact domain holders directly in cases where the desired domain is no longer available. Most registries openly publish the names and contact data of domain holders. Once this information is gained, buyers can get in touch with domain holders and make them an offer for the name. Sales are also known to occur even when the original domain owner may necessarily have never had any prior commercial ambitions
Hi, I’m Mark! I’ve been an online entrepreneur, writer, website flipper and more for over 8 years now. Having faced the highs and lows of the online marketplace first-hand, I’ve learned quite a few things along the way. I’d love to share all those learnings with you here on this blog! Buying/selling websites can be great fun, provided you’re aware of the right tactics and know how to implement them correctly. My posts will help you do just that!
There is a common misconception that domains expire on their expiration date. If a domain registration is not renewed by its expiration date, the domain simply goes into "expired" status, which means all services are shut off. Typically, we provide a 35-day grace period during which the current holder can still renew it for the standard renewal fee. For more information please review our domain deletion policy.
In the grey hat SEO world, the thought is that you can take a domain that is keyword driven, do a quick optimization to get the site ranking, and sell it off at a profit. It could, and does happen daily. How much time is invested in optimizing a site to get to page one, vs how much the site will sell for? (remember that quote at the beginning of this article?). Let's put it into simple math:
I'm not against making money in any way, but $400 doesn't really seem worth the effort and coffee expense invested (I like the good stuff). This is a very basic example used to put the costs in perspective. Most SEO providers charge more than $50 per hour, and you get what you pay for. The above example of a final labor estimate is probably much higher, or if the domain is already ranking high and the owner wants to sell, so is the initial purchase price. Since this is often repeated many times over for multiple domains, it could get time consuming, and expensive.
If you’re patient enough, you can discover at least four to five very good .COM domain names at attractive prices. However, you’ll need to carry out some research and find out the right places where they may be available. I’ve seen that such .COM deals can also be bagged from popular domain marketplaces like Flippa.com, or from the private portfolio portals of sellers, provided you employ the right strategies. You can contact the domain owners directly too. There’s no harm in emailing them directly to negotiate the prices.
Hi, I’m Mark! I’ve been an online entrepreneur, writer, website flipper and more for over 8 years now. Having faced the highs and lows of the online marketplace first-hand, I’ve learned quite a few things along the way. I’d love to share all those learnings with you here on this blog! Buying/selling websites can be great fun, provided you’re aware of the right tactics and know how to implement them correctly. My posts will help you do just that!
When you are selling a domain name, you don’t want to suffer because of failed transactions or being tricked by defaulters. Safeguard your monetary dealings; the best way to do this is to take the help of a secure domain transfer and escrow service. The escrow system is highly beneficial because a buyer has to deposit money at the trusted source prior to purchase, and the dealing between a buyer and a seller takes place through a secure domain transfer and escrow service. This makes the transaction safer for both parties with the involvement of a neutral third party.
Karn Jajoo heads the premium names program for Radix’s domain extensions: .WEBSITE, .PRESS, .HOST, .SPACE, .SITE, .TECH, .ONLINE, .STORE & .FUN. Radix has made more than $1.75 million in premium domains revenue in 2017 thus far, including the biggest nTLD sale of all times — casino.online, and the sale of business.site to Google for it’s free website builder, Google My Business. Karn considers himself a new gTLD evangelist and has had articles published in The Next Web, Website Magazine, & CMO.com.
Multiply that number by the hundreds of potential variations we got from the Google Keyword Tool and NameBio, and you’ll brain will be buzzing with ideas in not time. Of course, not all the 1,300 currencies will boom, but if you bet on the right ones and take early action, you can get your hands on some very solid domain names. You can repeat all of this for almost every industry imaginable. Use a seed keyword on Google Trends and the Google Keyword Planner then just let the data guide your journey from there like we just did.
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