it can be profitable,i'm selling domains and i can tell you that all providers loose money selling domains,we compesate it with  hosting plans but if you look just domain selling where providers buying domain for 7$-10$ and selling it for 0.99$-5$ ...well like say we compesate this with web hosting plans and other services,also on when some one renew domain but since even renewal is done mostly using cupons...than giving free domain with web hosting is best solutions.Well like i say it can be profitable if you want work with domain,buying domains for 0.99$ and than work with it and you can earn nice money.
Content setup: If your domain has potential to attract good search engine traffic, you might want to set up some content to help facilitate that. If this helps your domain do better in the search engine rankings then it’s a big win regardless of whether you choose to flip the domain only or flip the domain with the content as a “website”. The SEO value will be helpful either way.
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!
Hi Kulwant, these are great tips as usual. I particularly like the way to tell us to check the google pagerank in case the domain has been banned – that could lower the usefulness of the domain quite a bit. One thing though, don’t you think that buying domains is sometimes immoral? Like sometimes you accidentally buy a domain of somebody elses website who forgot to renew.
HIM: "Mainly small-medium sized local businesses looking for a way to increase their ranking. Most already have a branded domain in place, and have heard that using a keyword domain can help. Or they have seen a competitor ranking using that method. The problem I face is that they don't have a lot of money to spend, so I get lowballed on the asking price. There have been a few that make a ton of profit vs what I purchased it for, but that boils down to luck: what is for sale, when I find it, things like that."
Yes, buying existing domain names can be profitable too. Existing domains with a potential for profit can be found using Sedo. Make sure you pick domain names that have good traffic, backlinks and Google PageRank under 17 characters. Also, steer clear of existing domain names containing special characters or numbers because they are not likely to be sold.

If you buy a dropped domain from Snap or Namejet, the backlinks seem to be worthless for SEO.  They are valuable for traffic if it's targeted to your site.  Go ahead and 301 redirect into your site because it's the traffic from the back links that is worth something.  I use the Google URL builder to redirect these names so you can see the domain the traffic is coming from.
Thanks for the great review on domain flipping. I could definitely see myself getting into domain flipping down the road. I constantly find myself thinking of domains that are probably worth buying. But the way you have presented and analyzed which keywords get the most page views makes it more like long term investing. I also never considered trying to market the domain names or that Adsense money could be generated. Thanks for sharing and good luck with your domains!
Domain name sellers are advised to use Sedo.com to list their domain name. The real advantage with Sedo.com is the mandatory escrow service that comes with every transaction. The site charges the seller a commission of 15% per transaction or USD 50, whichever is higher, for domain names featured on the site. Sellers who do not list with Sedo.com but would like to use their escrow service will have to pay the minimum transaction fee of USD 50, or 3% of the transaction, whichever is higher.
Some people in the advertising and marketing industry have expressed fear that considering the way social networking portals are taking over our lives, businesses will soon operate from these websites and stop building their own websites altogether. Although such fear is justified to a certain extent, if looked at thoughtfully, the benefits offered by an independently hosted and controlled website far outweigh the promise held by social profiles.
Domain names have been on sale ever since the Internet revolution began during the 90s. Just because some entrepreneurs had the foresight to buy profitable domains before the rest of the world caught up with the trend, doesn’t make them domain hoarders. Domain names are just like the real estate sold in the off-line world. Anyone is free to buy/sell as many properties as one likes if his/her means permit.
Very good article and overview explanation. However I would not recommend buying names with bitcoin, ripple, etc in them. Not only will it be oversaturated those names are brands and can / will be trademarked and you can still be hit with a UDRP. Only register generic names like buycrypto.com, buyingcryptocurrency.com, theblockchain.com, etc. There are tons of opportunities and no need to infringe on a brand name.
Check backlink profile: If you’re not familiar with what backlinks are, they’re basically any public website that “links” to the domain in question. Since there are numerous shady tactics in the SEO world, expired domains’ backlink profiles should be examined carefully. Check if too many links are coming from the same domain or if links have weird anchor texts/use foreign languages. You can use a tool such as ahrefs for these purposes.

In the grey hat SEO world, the thought is that you can take a domain that is keyword driven, do a quick optimization to get the site ranking, and sell it off at a profit. It could, and does happen daily. How much time is invested in optimizing a site to get to page one, vs how much the site will sell for? (remember that quote at the beginning of this article?). Let's put it into simple math:
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.
Think about things like contractor.com or oranges.com. The more generic you go, the better off you will be. Why? Research has shown that Google likes generic names, so any company selling oranges may, for example, want the oranges.com domain name. If you own that name, you can set the asking price for it. Sounds great, right? There arejust a few things you have to think about first.
Whether you can use an existing backlink profile for a new web project under the available domain depends on whether the link target of incoming links can be reconstructed. In order to analyze which content was provided under a domain in the past, you can find out on the Internet Archive Backlinks have no value if they lead to nowhere and this can even have a negative impact. They are possibly redirected to similar subpages or homepages using 301 redirect. In this case the most part of the link’s power is lost.
Finally, we’ll look at a bit of a different animal in the expired domains world and that’s pending delete. To do that just click on the pending delete button which is right next to the Go Daddy Auction’s button. What this does is it shows you domains that aren’t quite deleted yet. So, they’re right before they get into this deleted category in expired domains. They’re going to be deleted, so they haven’t been renewed by whoever registered them, so they’re going to get dropped.
Parking: While your domain is just sitting there waiting for its new owner, you might as well take advantage of it. Parking sets up automated advertising on your domain so that you earn money every time someone views/clicks on an ad. This could be especially useful if your domain is an expired one that’s already receiving traffic. Services that offer parking include Sedo, GoDaddy, 1and1 among many others.
Dictionary Word/Pronounceable/Memorable/Brandable: A dictionary word domain name is very valuable. Of course, the more popular and widely used the word is, the better. For example, “marketing.com”, “cars.com” and “hotels.com” are 7-8 figure domain names. Even if a domain name isn’t a dictionary word, being pronounceable and/or memorable and/or brandable are all big pluses that add to its value.
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