Here's a test I have in process.  I bought an old $5 closeout domain from Godaddy TDname expired auction.  I put a quick minisite up and linked to it with a crazy anchor text phrase.  The domain is ranking for that crazy term now.  It's gone through one pagerank update and I'm waiting for a second to come.  Then I'll redirect the domain to another minisite.  I suspect the second site won't rank for the anhor text, but we'll see.  

Listing on domain marketplaces: This is the most common route. You should, however, acquaint yourself with each marketplace’s policies and fees before deciding to work with them. For example, Sedo’s commission starts at 10% and BrandBucket prohibits listing the domain anywhere else if you’re selling with them. Here’s a list of the most popular marketplaces (in no particular order):
Domains are more than a web address. They often have value that extends well beyond their initial registration price. Depending on how memorable it is or how well it ranks on Google, a domain that initially cost a few bucks can be worth a lot of money to the right buyer. That’s why domain auctions exist – to give domain owners an opportunity to sell their name for a profit, and give buyers a chance to get a name that can take their website to the next level.
Good point. Is the amount of work that went into getting a successful sale worth a $400 profit? Keep in mind, this is providing speculative numbers for the sake of debate. The real world hours invested in gaining position or page rank, and time a agency would sit on a domain before a sale would be much higher. We interviewed a few agencies that practiced this, not only those that supported our theory.
Results Per Page 50<>Order Byserie-stream.com1d, 1h | Current Bid : $29.99Viewrainbowlaw.com2d, 19h | Current Bid : $255.00Viewgrc.co1d, 4h | Current Bid : $111.00Viewlivepoints.com13h, 6m | Current Bid : $35.00Viewqqfo.com4d, 23h | Current Bid : $105.00Viewdb2teamblog.com1d, 1h | Current Bid : $23.99Viewsmallmediainitiative.com22h, 51m | Current Bid : $22.99Viewgogems.com1d, 9h | Current Bid : $36.50Viewutbb.com5d, 22h | Current Bid : $82.00Viewbabylon.co1d, 4h | Current Bid : $45.00Viewbankaim.com1d, 3h | Current Bid : $16.99Viewwands.net22h, 39m | Current Bid : $15.99View9000.co4h, 28m | Current Bid : $27.99Viewoldhall.com1d, 13h | Current Bid : $14.99Viewwatchepisodes.co2d, 4h | Current Bid : $27.99Viewvpstudios.com3d, 8h | Current Bid : $14.99Viewchangeyourcar.com1d, 2h | Current Bid : $13.99Viewtohmail.com1d, 16h | Current Bid : $13.99Viewthegeorgetownindependent.com1d, 22h | Current Bid : $13.99Viewkalastusoppaat.com1d, 23h | Current Bid : $13.99Viewputlocker-9.me4d, 21h | Current Bid : $17.99View小山.com22m, 46s | Current Bid : $12.99IDNViewinterhuehue.com3h, 12m | Current Bid : $12.99Viewtoysthisyear.com3h, 59m | Current Bid : $12.99Viewthriftstore.us4h, 28m | Current Bid : $10.99Viewwwwstockcharts.co4h, 28m | Current Bid : $25.99Viewhdwallpapers.im5h, 28m | Current Bid : $16.99Viewdepoconsulting.com7h, 39m | Current Bid : $12.99Viewcolombomirror.com14h, 29m | Current Bid : $12.99Viewtobemuslim.com16h, 15m | Current Bid : $12.99Viewmzwriter.org18h, 59m | Current Bid : $13.99Viewlagarinaorchestra.org19h, 2m | Current Bid : $13.99Viewjakartainstyle.com19h, 32m | Current Bid : $12.99Viewlindholmspurs.com22h, 48m | Current Bid : $12.99Viewlinkmp3.com23h, 2m | Current Bid : $12.99Viewdentists-nearme.org23h, 39m | Current Bid : $13.99Viewcorchetes.com23h, 57m | Current Bid : $12.99Viewdaphoz.com1d, 3h | Current Bid : $12.99View123movies.moe1d, 12h | Current Bid : $19.99Viewsintmaarten-wedding.com1d, 13h | Current Bid : $12.99Viewhoteloasisaegina.com1d, 15h | Current Bid : $12.99Vieweprocom.org1d, 18h | Current Bid : $13.99Viewolympiaallages.org1d, 19h | Current Bid : $13.99Viewrenderfactory.net1d, 20h | Current Bid : $13.99Viewgt5rs.com1d, 22h | Current Bid : $12.99Viewedpillonnet.com1d, 23h | Current Bid : $12.99Viewwysteriaband.com1d, 23h | Current Bid : $12.99Viewhfhualang.com1d, 23h | Current Bid : $12.99Viewkill.one2d, 4h | Current Bid : $11.99Viewspeak.one2d, 4h | Current Bid : $11.99View123>>>
HIM: "Mainly small-medium sized local businesses looking for a way to increase their ranking. Most already have a branded domain in place, and have heard that using a keyword domain can help. Or they have seen a competitor ranking using that method. The problem I face is that they don't have a lot of money to spend, so I get lowballed on the asking price. There have been a few that make a ton of profit vs what I purchased it for, but that boils down to luck: what is for sale, when I find it, things like that."

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.
Joe Styler serves as product manager for the aftermarket at GoDaddy. He’s responsible for marketplace products including any purchase, sale, or monetization of a domain name. During his nine-year tenure at GoDaddy Joe has served in a variety of directorial and supervisory roles. His passion is seeing his customers become successful in their business goals when using the aftermarket. He has been interested helping people with transactions on the Internet for more than 20 years. Joe received his B.A. from Moody Bible Institute in Chicago, and his Masters in Divinity from Gordon Conwell in Massachusetts.
Hey, the possibilities are endless when it comes to domain flipping so do not think that all profitable domain names are already taken. At this time, almost 90 million .COM domains have been registered, so people tend to think that there are not many good domains left. That is not true since you still have the opportunity to incorporate two or three word target keywords.
Many top-level domains, or TLDs, out there have the potential of being sold at top dollar rates. Gone are the days when domain names with ‘.COM’, ‘.ORG’ and ‘.NET’ were known as top-level domains. Newer domain names with ‘.US’ and ‘.IO’ are also worth their weight in gold. All you have to do is conduct thorough research in order to find all the good domain names you can park.
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.
Simply put, domain flipping is the process of acquiring a domain name with a motive of selling it at a higher cost to someone else. This is very similar to flipping houses or cars, the only difference being that you can’t do much to increase the value of the asset by ‘fixing it up’ and then turning it over for a quick buck. Acquiring a valuable domain name before it is tagged with a premium price is the key to a successful domain flip. Raymond Hackney, a domain investor and consultant, successfully flipped a .website domain (his first on a new domain extension) for a decent profit. Read all about it here.
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. 
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