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.
As far as flipping domains for a profit is concerned, there are certain domain names that are worth a lot of money. For instance, Hotel.com and Business.com have been reportedly sold for $11 million and $7 million respectively. Now even though coming across such golden domain names seems more like a long shot, you can still make a decent amount of money if you choose to buy and sell domains as a part-time business opportunity.
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."
You can’t tell us (with a straight face) that aged dictionary word .net and .org domains won’t sell easily. The .net extension is technically OLDER than .com, and holds an equally intrinsic value to that of its .com counterpart. These LLLL .com’s that are just letters slapped together may be cute to look at and easy to sell, but in the eyes of Google, ANY aged domain that makes sense (i.e. a dictionary word) is going to be much easier to rank for than some acronym or hodgepodge .com…and at the end of the day, that holds more value than whatever society sees in these nonsensical “wqij.com” names.
Link popularity: the link popularity is a parameter that is used to quantitatively evaluate incoming links to a website. This is measured depending on the number of links to a domain according to the mantra 'the more incoming links, the more important the site'. Link popularity is generally determined by the PageRank algorithm. The PageRank only plays a minor role in determining the domain’s relevance.
That said, my recommended budget for beginners would be $500+. Using this budget you could buy a bunch of high-potential $10 domain names, expired/dropped domain names or a mix of both. It’s very important to invest only what you can afford to lose and treat this as a side hustle till you get the momentum going. As you gain experience, industry expertise and some sales under your belt, you can then consider slowly growing your business into a full-time gig.