Sellers should also learn to identify premium domain names. Dictionary names are premium domain names. Domain names with dictionary-singular names are the hottest on the Web, and buyers are willing to pay a lot to purchase them. Names, such as search.com or askme.com, will get buyers more easily than long domain names. It is also important to note that unhyphenated domain names have more value. Even product-related domain names also can enable sellers to earn substantial profit. Once a seller has a certain degree of knowledge about the domain, he can start searching for buyers.
Before EmpireFlippers became a website broker, the internet marketing duo Joe Magnotti and Justin Cooke had been sharing how they flip sites for cash on their widely-popular blog and podcasts. They relocated to the Philippines, hired locals to create content and build traffic, and then literally built hundreds of niche sites that earn from either AdSense ads or Amazon affiliate commissions. Every month, they chose low-earners and sold these ready-made sites on their marketplace.
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.
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.