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.
If you buy keyword specific domains, you're really buying the type in traffic.  I use the URL builder and redirect through that URL so you can see how much traffic your getting from the keyword domain.  There seems to be no rythme or reason to what keyword domains deliver traffic and what don't.  By tracking traffic with the Google URL builder you get a feel for what names are giving you traffic and which are not. ie. the plural, the singular, two words, three words, the possessive, etc.
What I like to do is sort by DP which stands for domain pop, and this is basically the number of linking root domains. So, BL is the number of back links. As you know that can be somewhat misleading if they have a lot of site wide links or multiple links from the same domain. I like to sort by domain pop. What that does is it brings up the sites with the most amount of referring domains.
The third option is the one that's the most time consuming but also has its benefits. It's like having a successful restaurant and buying another restaurant and operating them simultaneously. They're not the exact same restaurant, but both are popular in their own right and make you money. The same goes for Option #3. You could update the content on the old domain and sell the same products that you're selling on your current site. If you can get both sites to rank alongside each other in the SERPs, you're increasing your conversion chances and sales potential.
Please keep in mind that domain flipping isn’t child’s play. As much as you may want, it isn’t easy to buy and sell domain names for huge profits without putting in a good amount of time and effort. Although there’s nothing wrong in aspiring for at least one big deal per month, be aware that sometimes it takes months and months to sell just a single domain name.

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.
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In theory, you could technically acquire a domain for $10,000 and be able to sell it for $100,000. You could also acquire a domain for $10 and be able to sell it for $100,000, $10,000… or $100, you get the picture. Because of this, it’s hard to recommend a perfect starting budget because your strategy, experience, and the pace at which you learn will hugely affect your buying and selling decisions.
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