There is NO accurate way to predict the sale of digital assets – if someone wants it, they’ll buy it. For example, those wasting their money on useless .com’s (LLLL’s that have no rhyme or reason) will spend 3x more time and money optimizing their useless name as someone that buys ANY keyword loaded domain (regardless if a TLD or new one). But these individuals who are spending thousands on domains will eventually get stuck with these domains in favor of (you guessed it) the oft forgotten yet highly useful 1-3 keyword domains. Why? Study Google’s algorithm as I have for over a decade, and you’ll figure it out.
Namejet is a domain clearing house (at least that is my term for it). What happens is that people let their domain names expire everyday. Some people just don’t need their domain anymore, some people forget to renew it, some people die, I mean there can be hundreds of reasons why a domain will not be renewed. What the domain registrars want to do is cash in on the domain that someone forgot to renew, so they offer that domain to Namejet to auction it to the general public. Think of it like a storage unit, someone doesn’t make their payment and the storage company hires an auctioneer to come and auction the storage unit to the general public. Namejet is doing this but for domain names. The bid for each domain starts at $69. What I LOVE about Namejet is the process… they let you search through the domains that are coming up for auction 30 days in advance. Whoever places a $69 bid on a domain will be entered into an auction when the 30 days runs out with everyone else who placed a bid. If you are the only bidder than you get the domain for $69. If there are 10 other bidders than there is a closed auction, meaning only you 10 guys can bid now against each other in a 3 day auction with the highest bidder taking the domain when the clock strikes zero. I love this because let’s say there is a great domain and it flies under the radar. If it goes to auction with only 3 or 5 or 7 bidders my chances of winning this domain at a very low price are great. I’ve won domains for $100 which I was able to flip for $2,000. I won a domain for $2,500 which I flipped within 4 months for $7,500. I won a domain for $1,000 which I’ve turned down $5,000 offers on because I think I can get $10,000 for it. The key is to not overpay in order to leave yourself plenty of room to turn a profit when you flip the domain.
One of the easiest ways to make money online is by buying something for a low price and selling it for a higher price. It is even better when you don’t need to pickup or ship a product. Today I’m going to talk about how to make money online by flipping domain names and how I personally have made tens of thousands of dollars in the past year doing this.
Be careful! When searching for domains, it might be tempting to, for instance, buy mcdonalds.net (if it were available) and then try to sell it to McDonald's. The logic here would be that they own the .com and wouldn’t want anyone to own the .net and use their name, right? Also, it’s a big name so there’s gotta be a biiiiiiig payday comin’, RIGHT? Wrong, and wrong.
So how do you develop that instinct? NameBio maintains a database of over 500,000 historical domain sales (as of writing this post). They have interesting filtering features by which you can narrow down domains by price range, date sold, keywords and more. Simply sifting through the listings on NameBio long enough will quickly develop your domain appraisal “instinct”.