Another point of concern is that many people feel that squatting or registering domains is unethical. This is because many web developers have a hard time finding relevant domain names for their projects since most of them have already been registered. Many corporate giants also frown upon the domain flipping industry because many domain names relevant to them are already registered.
Something wise my father once told me "Something is only worth how much someone is willing to pay for it." This small seemingly unimportant statement has guided me in many selling and purchasing decisions in my life. Sometimes, it makes the reality all too apparent. So, is buying a domain with the intention of selling it a good idea? Let's break down the details, and talk to some people that actively pursue this method. Yeah, we know a guy.
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.
Think about things like contractor.com or oranges.com. The more generic you go, the better off you will be. Why? Research has shown that Google likes generic names, so any company selling oranges may, for example, want the oranges.com domain name. If you own that name, you can set the asking price for it. Sounds great, right? There arejust a few things you have to think about first.
They see a domain’s price tag and they can instantly tell whether it’s under or overvalued. This is probably the most important skill one should have in this industry. Neil Patel has an interesting related quote: “The most important thing to remember when buying sites is that you always make money on the buy, never the sell.” In order to successfully do this, you must be able to spot undervalued domains. This is what will ultimately translate for you into a handsome profit margin when you get the opportunity to resell the domain for its “real value”.