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.
One of the easiest ways to make money online is by buying something for a low price and selling it for a higher price. It is even better when you don’t need to pickup or ship a product. Today I’m going to talk about how to make money online by flipping domain names and how I personally have made tens of thousands of dollars in the past year doing this.
Those trading domains for commercial purposes are generally on the prowl for lucrative domain endings. There are essentially two different ways traders go about making money off of domain names. One method entails purchasing already established names for a low price and selling them for a profit later once their value has increased. Another strategy involves buying and registering a domain that is thought to possess a high sales potential. Many domain traders use backorder services. These services automatically register a domain when one becomes available or is deleted (what are known as expired domains).
Acquiring what you believe may be a valuable domain name is the easiest part of the equation. Finding the right buyer is much more difficult. Using auction sites and forums is perhaps the best way to find qualified buyers that are interested in your domain, and using auctions will take some of the stress away from establishing the value of a domain name yourself.
Here’s what you DON’T want to do: Target prospective buyers based on their perceived economic status, without any insight into the industry you’re targeting. “Lawyers seem to do well,” you think, “maybe I should start selling names to them.” So you rush out and buy a bunch of domain names you think would appeal to the law firms you’ve identified as potential buyers. Without knowledge of the space, you may not know that the American Bar Association and other industry-specific organizations set rules that govern some aspects of legal advertising. You’re not going to strike gold selling names your target buyers can’t use.
1) pending delete auctions. These are domains that were not renewed and are going through a pretty complicated drop process. You can backorder these names at the auction venues and then each attempts to "catch" the dropping domain. If one is successful you win the domain at $59 if you're the only one to backorder the name. If more than one person backordered the domain a 3 day private auction is held. Once the domain goes through the drop process, the back links have pretty much zero SEO benifit to the new domain owner.
I OWNED DOMPERIGNON.ORG, incredible, but true. Lost it, back in the days when internet in India was not a readily accessible utility. And I was a casual domainer. You had to go to a cybercafe. Did that late in the day, towards the expiry of the domain. No chance of renewal. The domain is now with the owners of Dom Perignon and is redirected to domperignon.com!
In the past, expired domains were used as part of black hat SEO in order to generate backlink sources quickly and easily, and this practice is still used somewhat today. Getting links in this way is not a recommendable practice. All relevant search engines work nowadays with highly complex ranking algorithms, which can no longer be outsmarted by these link networks.
Do you want to learn how to make money buying and flipping domain names? If so, this guide will provide you with the basic knowledge and direction required to get started! Unlike domain name investing, where a "buy and hold" strategy is the standard technique, domain name flipping is all about finding valuable domains and quickly selling them for a profit.
Listen to expert domainers on domainsherpa.com. Read anything by Michael Berkens, Frank Schilling, Eliot Silver, Morgan Linton, and Ron Jackson. Watch YouTube videos on domain investing. Read blogs like The Industry News Magazine at DNJournal.com. Search #domains on Twitter. Go to industry conferences. Understand the Google Keyword Planner tool inside and out.
If domains are real estate, then the same rules of real estate should apply. In real estate, taxes are based on the value of the property. So, a person asking $10,000 for a domain shouldn't be paying the standard $15-30 renewal fee as a person asking $200. The renewal fee should be based on the domain's value. Domainers want to claim it's like real estate without applying the most fundamental rules of real estate.
For the following TLDs you can now find a expired/deleted domain list. .gi, .gl, .gy, .hn, .ht, .ky, .mu, .om, .pf, .qa, .rw, .sb, .sm, .sn, .st, .sx, .tc, .tl, .ug, .uy They also show up in the Deleted Domains (last 7 days) list and in the Domain Name Search, however they are not in the pending delete list! I do not have a working droplist for them yet, so that is why they are not released in the pending delete list yet.
For the following TLDs you can now find a expired/deleted domain list. .cr, .gd, .gs, .im, .ke / .co.ke, .kg, .kz, .ir, .la, .ma, .pe / .com.pe, .pm, .re, .tf, .wf, .yt, .so, .th / .co.th, .uz They also show up in the Deleted Domains (last 7 days) list and in the Domain Name Search, however they are not in the pending delete list! I do not have a working droplist for them yet, so that is why they are not released in the pending delete list yet.
However, I'd argue that most people in the business really struggle as they don't understand what makes a good domain name and what's a bad domain name. While I do not work in this field full-time, I can say that I can make a living of it, but it's probably because I don't ask for absurd prices (e.g. randomword247.com domain name for $8000 is just unrealistic and won't happen) and therefore can sell domains easier.
Listing on domain marketplaces: This is the most common route. You should, however, acquaint yourself with each marketplace’s policies and fees before deciding to work with them. For example, Sedo’s commission starts at 10% and BrandBucket prohibits listing the domain anywhere else if you’re selling with them. Here’s a list of the most popular marketplaces (in no particular order):
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.