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.


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Since 2013, more than 183 million domain names have been registered but none of these is used. A large chunk of these domain names is hoarded by domain flippers who will then resell these domain names to new buyers. Now if you are a newbie in this particular field, the best way to go about flipping domains is to start with a small budget until you gain relevant experience in the field.
Wait for people to contact me: When I bought my two domains, I didn’t pay the extra $12 for Domain Privacy, learn about Domain Privacy here, so anyone can look up the owner of IHateCold(.com) and ReallyFunnyJoke(.com) in the ICANN WHOIS Database. It can tell you whoever owns any website unless that domain owner pays for domain privacy. So if someone was really interested in any of my websites, they could look me up and shoot me an email about their interest.

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.
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).

Surely if you purchase a domain (domain1.com) and redirect it to your existing domain (domain2.com) you expect to loose all ranking for domain1.com. If 301's are used then the objective is simply to pass on authority, not dominate the search results with 2 domains. If you want to keep domain2.com in the index then you would take Rebecca's option 2 or 3.
Unfortunately, most domain names take at least a couple of months to sell, especially without an attached website. Thus, there is no need to become discouraged if your domain name does not sell immediately. Most people make the mistake of quitting their domain speculation endeavor after waiting for several months to sell without success. In reality, domain name squatting can be just as profitable, and it is a valid form of long term investing.
But in general, the best and easy way to sell a domain is to go with a marketplace. There is many popular marketplace dedicated to selling domains including Flippa and SellDom to sell your domain (full disclosure, I’m working on SellDom). The advantage is to leverage the popularity of that kinds of services in hope that someone will find your domain and buy/make an offer.
To find popular phrases I opened up the Google Keyword Planner. This free tool by Google, allows you to find out how often a word or phrase is searched in Google. A phrase like “Yoga Mat’ has on average, about 10K – 100k monthly searches. That’s A LOT. However a more niche phrase like “Good Yoga Mats” only has 100 – 1K monthly searches. These seem similar, but I wanted to focus on the exact popular phrase that people are searching for.
Many top-level domains, or TLDs, out there have the potential of being sold at top dollar rates. Gone are the days when domain names with ‘.COM’, ‘.ORG’ and ‘.NET’ were known as top-level domains. Newer domain names with ‘.US’ and ‘.IO’ are also worth their weight in gold. All you have to do is conduct thorough research in order to find all the good domain names you can park.
Keyword relevancy is not the only thing that matters when it comes to SEO. However, domain names that were previously used by other businesses usually have a lot of backlinks and a decent ranking on PageRank. Even though such domain names are usually about to expire, they are still worth a lot of money if they have a good number of backlinks and a ranking of five or more.
There are many different ways to buy and sell domain names. Many standard domain registrars, such as GoDaddy.com, will facilitate sales via auction. Meanwhile, specialized websites, such as Sedo, are designed exclusively to buy and sell domain names. Finally, parking domains with a for sale page is a great way to draw targeted interest from potential 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.
There are currently two main types of domain speculators: those that buy domains, build sites around them, and then flip the domain and accompanying website, and then there are those that buy and sell domain names without web sites attached. While both can be very lucrative businesses, the second type is much easier for novices to learn, and as such, shall be the topic of discussion for this article. 
Using the keyword search feature you’d also be able to familiarize yourself with how much domains typically cost on average in a certain industry or niche. Even better, they have an addictive little app called “The Domain Game” available for iOS and Android. They basically give you a domain and you try to guess whether it sold for three, four, five or six figures. You get points for each correct answer and lose points for incorrect ones. You do this for a while and you start to see patterns. Your brain starts connecting the dots and you get better it. Now you’re ready to go out there and scout some domains!
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