A good majority of web developers view the domain flipping industry with disdain as they face a hard time finding the right domain names for their own development projects. Domain flipping is also looked down upon by corporate and business entities who register multiple domains related to their trademarks or business names. Actually, it is these people who’re the real domain name squatters!
There are many risks that would-be domain investors should carefully consider before buying and selling. The three largest risks are liquidity, subjectivity and legality, but there are also many other ranging from misleading appraisals to faulty escrow payments. Would-be buyers should carefully consider these risks before investing in domain names.
If you buy a domain from a 3rd party, the backlinks are valuable.  I always wait a few months before redirecting, so just set up a quick minisite until two page rank updates have passed and then go ahead and 301 redirect.  However, it seems that you'll get the link juice from the back links, the anchor text is ignored by Google.   Buying a domain at Godaddy TDName expired auctions, seem to not count as a dropped domain if you immediately set up a mini-site.
Yes! Selling domain is an emerging trade and no wonder if it can develop into an exchange. www.DomainX.org has been initiated with this view. There are some good ideas in the comments regarding which names to buy and how to grow their value. However one must not forget that it also involves a recurring cost (annual renewal) and keeping many of them might become difficult if you are not really selling at least a few to cover it. Enjoy free listing at DomainX.org.
To sell a domain name, one should learn to price it. Many sellers fail to sell names in the marketplace, simply because they overpriced the domain, and thereby lost the chance to sell it. A lack of knowledge leads to erratic pricing. Experienced buyers will not try to bargain, unless you have a very rare name. A seller should therefore, understand how good the domain name is. What price will he get from a buyer? What suffix does it carry? For instance, .com names are likely to sell fast and will bring greater profits than, say .info names. Similarly, .net, .org and .in domain names are the best to make decent profit.
At the end of the day, the owner of this domain name let it expire and didn’t renew it. So while there may be many legit reasons as to why they might’ve done that, one of the not-very-legit reasons could be that the domain is “dead” in some way or another. In other words, it’s no longer useful for the original owner because of a penalty or otherwise. If so, it's unlikely it'll be of any use for you as well.
Similarly, for adult items which are theme based you go for similar domain names that are suitable for such businesses. Like for bridal cakes for bachelorette we need to wish them luck sop for a bachelorette cakes and other party items site the names can be like http://www.luckonluck.com. Though somewhat it could be suitable also for book making sites. But better luck is needed to a bride after all and for HEN parties ladies need luck.
Hi guys, just a thought, you do not need to build traffic to the domain yourself, you can always buy expired domains, best to subscribe to a paid service like dropping.com (so you are the first to know) or a free one, expireddomains.net and in this way, you can get old domains that have traffic. You could use these domains for parking, getting advertising income or even to sell. I have noticed, that domains that were not hot in the past, can still be hot now, just use Google Trends to type in the keyword, and you will see its future projections. 
These should be more than enough to get your domain in front of tons of potential buyers. If you did a good job picking an awesome domain, you should have no problem (eventually) selling it. You need to be very patient as it could take months or even more to land a decent deal. A lot of domainers sit on domains for years before actually selling them. This is why it’s best not to obsess over a domain and simply move on with buying and listing others (or going back to your day job if this is a side gig) once you've listed the initial one.
The domain name industry is quite similar to the real estate industry in a lot of aspects. There are end users, brokers, consultants and domain flippers or “domainers”. Domain flipping works similarly to buying a house, renovating it (or even sometimes just sitting on it) and then selling it again at a higher price point. The gist of it is: you’re purchasing a domain name and betting it’s worth (or will be worth) more than you paid for it. If you’re right, you get a nice paycheck and move on. Those who make a living out of this just rinse, repeat, and scale.
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