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."
I have an interesting twist on how I have done it in the past. I will buy a domain and use it as a development domain for blog posts and things of that nature. Then over time it will gain DA and PR. Then I will sell it off and buy another development domain and start the process over. Not quite the process you mentioned, but it works. People will link to the development site to show things off as well  sometimes, so that helps.
Also, Sedo.com, makes millions a week selling domains,even in the past week[3]! If you want to sell here, I would probably use a paid category or featured listings, one of my category listings, got 44 views in just 1 week but still waiting for a sale this month, hopefully. I would not really on this as a business, unless you add web development to it, and also, be sure to check that you are making a good profit, say within 6 months!
This is in response to a question a fellow Moz community member once asked in Q&A, and we thought that it deserved its own article. Buying up expired domains, or purchasing keyword-driven domains is becoming more popular amongst the internet "get rich quick" crowd. The big question is: Can you make a profit by buying and selling domain names? If you get the right one, sure. If you plan on repeating the process over and over, probably not.
To sell a domain name, one should learn to price it. Many sellers fail to sell names in the marketplace, simply because they overpriced the domain, and thereby lost the chance to sell it. A lack of knowledge leads to erratic pricing. Experienced buyers will not try to bargain, unless you have a very rare name. A seller should therefore, understand how good the domain name is. What price will he get from a buyer? What suffix does it carry? For instance, .com names are likely to sell fast and will bring greater profits than, say .info names. Similarly, .net, .org and .in domain names are the best to make decent profit.
Selecting a profitable niche is very important when it comes to domain flipping. Having adequate knowledge in searching domain names is critical. It will help you with fishing as well as parking domain names. Carving out a niche for yourself will enable you to seek out prospective buyers actively who would be interested in the domain names you are offering.
Domains that are indexed on Google and highly ranked are particularly attractive to traders. Other SEO aspects, such as backlink profiles or the search volume of the keywords in domain names, also play a significant role in appraising value. Design can also positively affect the price of a domain. Short and succinct names that are easy to remember are especially advantageous. Endings are further factors that should be taken into account. Top-level domains (TLDs) such as .com or .org are by far the most sought-after endings.
Control your expectations and keep them based on facts, data and expert opinions. Use a tool like EstiBot to get a general idea of how much the domain may be worth. Do understand that this is an automated appraisal tool, so take those numbers with a grain of salt. However, it’s great to get you started. You can also use paid, human-based appraisal services from Sedo and other providers, but these can get costly. If you’re not careful, you could easily overspend on such services and then realize your domain may not even be worth the appraisal fee.
Premium Domain names are domains that are already registered, but are available for sale at a higher price. Sometimes it will be an individual selling the domain, or it could be the domain registry (Like Donuts Inc. or Radix) selling their top quality inventory at a higher price point. These domains can be priced anywhere from a couple extra bucks to millions, depending on the domain name, the level of interest, or the amount of traffic it organically receives.
Apart from pending delete and auction domains, you can use our domains crawler that lets you scrape websites in bulk to find domains that are available to be registered and have amazing backlinks. Your personal crawlers run on our servers and are entirely web based. You do not need to install any software or have a VPS or proxies in order to do use them.
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.
The market-driven principles of the domain trade mean that a domain is only worth as much as the buyer is willing to pay. It is for this reason that criteria such as market potential and usability play such central roles in determining prices. Values can change immediatly and without any warning. The price of a domain that was once of little interest to anyone in years past can skyrocket once, for example, a newly founded company takes interest in that same name.
Lately I've noticed a lot of questions in Q&A centering on purchasing expired domains. A lot of our members have expressed interest in buying old domains for a variety of prices (some are cheap, some are going for upwards of $50k) and want some advice on what to do with the domains once they've been purchased. I'm no domainer, nor am I an expert in such a business tactic, but I generally recommend one of three different options for an expired domain (and would love to hear more if you've got any).
When a domain name that was previously registered expires, it goes through a grace period that allows the previous registrant one last chance to reclaim their domain before it becomes available to new buyers. If the previous registrant still has not renewed their domain after the 77 day deletion process, the domain name will officially expire and enter the Aftermarket.
Some buyers are a tough nut to crack and they may quote a ridiculously low offer. Explain to these buyers and convince them why the domain is worth more than the quote. If the potential buyer doesn’t agree, fret not, just move on to the next one until you find a willing buyer. Once you finalize the deal, then it’s time to find the best payment mode for the transaction.
I have a question regarding a certain keyword though generic but it is trademarked and the trademark owner asked me to remove the parking page, is there a way i can offer my domain name to the company? What is the best approach in selling the domain to him without hard selling it and giving a reasonable price. I will be giving 10% commision to any domainer-mate that can help me pull the sale off.
So what are some strategies to finding great domains to flip?  Well, the first is to find quality domains.  There are some sights that publish a daily list of good upcoming Namejet auctions like here: http://www.tld.org .  This is an easy way without having to search to find some great upcoming auctions to bid on.  If you have the time you can search Namejet yourself.  The key is to making money by flipping domains is to find domains that other people will want.  If the 30 day window period just started on a domain (for this example let’s say it was Anticareer.com) you could use Google to search for ‘anticareer’ and ‘anti career’ and see if you can find people who own sites that may be interested in this domain.  Email them and ask them if they’d have an interest in purchasing the domain Anticareer.com.  If you get some bites you can then go and bid on the domain and if you win it you can flip it right away.  Once you get some experience it will be easy for you to spot the domain names which you can quickly and easily flip and you’ll also develop a good feel for what price you should pay to make yourself the amount of profit you want to make.
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 today's SEO (2015) the answer would be a big no! With changes to the google algorithm and the constant updates panda, penguin, what's next...., much of the "keyword url" power is now gone. While there was a day when it made sense to buy a good named .com and expect instant indexing, not so anymore unless the site is very strong coming in ,which in that case you'll drop a minimum $50k. If you are willing to drop that kind of money and the site has a high domain authority, it might make sense as long as it matches whatever product or service that you're trying to sell. Just my opinion...
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.

Unfortunately, you probably won't like my tips. You need to look for quality domains at a good price and be willing to hold on to them to get your money back or know when you've invested wrong and get rid of them. Quality is in the eye of the holder, and believe me, I've looked at plenty of domain portfolios that the owner just knew were million dollar domains but in my opinion, they'd be hard pressed to get anyone to take them off their hands for just the registration costs. You have to figure that most of the best .com domains were registered in the 90's, and those are the ones you typically see the 6-7+ figure sale prices on. I'm not saying there isn't money to be made because there is. But it does take time, research and money, and maybe in some cases a little bit of luck. If you're thinking of getting into the industry, I recommend digging into the resources provided by Michael Cyger on http://domainsherpa.com and from there, moving to some of the other big blogs such as TheDomains.com or
The great thing about this is that it’s kind of like a metasearch engine for all the places that you can find expired domains around the web. First, let’s look at deleted domains. Okay? To do that, you go click on the deleted domains button here and then click on any top level domain that you want to get. I prefer .com because it’s obviously the most common top level domain.

There are many risks that would-be domain investors should carefully consider before buying and selling. The three largest risks are liquidity, subjectivity and legality, but there are also many other ranging from misleading appraisals to faulty escrow payments. Would-be buyers should carefully consider these risks before investing in domain names.
Control your expectations and keep them based on facts, data and expert opinions. Use a tool like EstiBot to get a general idea of how much the domain may be worth. Do understand that this is an automated appraisal tool, so take those numbers with a grain of salt. However, it’s great to get you started. You can also use paid, human-based appraisal services from Sedo and other providers, but these can get costly. If you’re not careful, you could easily overspend on such services and then realize your domain may not even be worth the appraisal fee.
Length: This is pretty self-explanatory. Generally the shorter the domain name, the more valuable it is. This difference in value decreases exponentially as the name gets longer, though. For instance, the difference in price between 3 and 4 letter domains are significant, while the price difference between a 7 and 8 letter domain would usually be much less significant.
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