What Is Domain Flipping? Tips On How To Flip Domains For Profit

In a world dominated by online activity, an interesting business practice has been gathering momentum. Tech savvy entrepreneurs have entered the side hustle of domain flipping.

Similar to people who invest in real estate and buy properties and then sell them on for a profit, these digital entrepreneurs are buying and selling on internet domains for profit.

This domain flipping guide will walk you through what domain flipping is, how to do it and what you need to get started.

What Is Domain Flipping?

As mentioned, domain flipping is the art of buying and selling domain names for a profit - but what is a domain name? It’s quite simply the address of a website, such as www.sidehustle.co.uk.

Businesses use domain names to build their online presence and brand. Having the right domain name can make a massive difference to how your website performs. This is the reason many companies are prepared to pay high prices for the right domain name.

The availability of domains is bigger than it’s ever been thanks to the addition of more Top Level Domains (TLDs). The TLD is the extension of a website that comes after the last dot. For example, .com, .co.uk, .org etc. More recently though, people are looking at alternative extensions such as .shop, .online and .site.

Of course, if it was that simple, the world and his dog would be doing it. The secret to success with domain flipping is getting the right domain names at the right price. Doing this involves research so you recognise what’s trending and what keywords are going to put your domain in demand.

There are 4 keys principles of domain flipping:

1. Find a domain name that is undervalued

2. Buy the domain name at a low price

2. Sit on it and improve the value

4. Sell it on at a nice profit

How To Begin Domain Flipping

It’s not a case of guessing which domain names will make you money. You need to consider a combination of things before you are up and running. Let’s take a look at some considerations:

Bankroll

Your budget can control how many and what domains you choose to buy. What’s your strategy? To buy a lot of domains and sell them on at lower profits, or to aim for higher value domains with bigger profit potential? If you’re just starting out with domain flipping as a side hustle, it might be wise not to buy loads but to get a few and sell them on in the shorter term.

Keyword Research

Obviously, the best domain names will sell for the most money. Consider using Search Engine Optimisation (SEO) tools to identify words and phrases that get the most searches. There are paid versions of these tools such as SEMRUSH, but there’s also really good free tools such as Google Keyword Planner and Word Stream.

Other things that are typical of high value domain names are:

• Keyword Rich - domains that have popular keywords can interest potential buyers

• Domain Length - using domains with one or two words are very popular

• Memorable Names - avoid complicated domains that are hard to remember

• Domain Extensions - extensions such as .net and .org can still be valuable but .com domains are the gold medal of domain extensions.

Pay The Right Price For A Domain Name

The prices for domains can vary significantly with valuable domains selling for thousands of pounds. On the other hand, you can buy some good domain names for as little as 1 pence for the first year. What you are willing to pay really does depend on your budget.

There’s a few routes to buying domain names for flipping:

• Domain Registers: There’s hundreds of companies offering domain names for sale but some of the better known and trusted websites are Reg 123 and GoDaddy.

• Domain Auctions: Sometimes, people and companies buy domain names and don’t use them or they expire. Domains that haven’t been renewed can be bought at auction from sites like Godaddy and namecheap.

Create a Portfolio of Domain Names

Only having one domain name on your books at a time probably won’t work. Try to buy a few and don’t be afraid to buy similar domain names.

If you have a few domains in your portfolio, this can look good when you show them to potential clients. You never know, they might buy more than one from you.

Improve The Domain Name Value

Once you have bought your domain(s), you need to try and improve your chances of selling it for a profit:

• Don’t be in a rush to sell the domain on. Sometimes it’s better to sit on it as good domains can increase in value over time.

• Make sure people know about your domain. Create a basic website that has a landing page and/or blog. You could even have a ‘For Sale’ banner on the homepage to let potential clients know you’re prepared to sell the domain.

• Your domain will become more valuable if it gets traffic so consider using SEO techniques to improve its visibility.

Put The Domain In the Public Eye

So, you’ve bought your domains and optimised them as much as possible, which means it’s time to sell them on.

• List it on domain marketplaces: Flip UK, GoDaddy, Sedo and Flippa.

• Contact clients: If you have a database of existing clients, mailshot them or call them to let them know which domains you have for sale.

• Reach out via social media: Utilise Facebook and LinkedIn to market your domains. Also look out for forums specific to domain flipping, e.g. on Reddit, to connect with potential buyers.

Remain Patient

It can be a bit like fishing - it might take a while to get a bite. Don’t panic, just carry on trying to market your domains. Good domain names will eventually attract potential buyers.

Seal the Deal

If you find a buyer, negotiate a price that both parties are happy with. Ensure that the platform you’re using to process the sale of your domain is secure.

If you’re using a known marketplace, it will almost certainly have a secure transaction process. If you are selling the domain privately, make sure you process the transaction securely to protect both parties.

So, what next? Did you make as much profit as you had hoped for? Did you take into account the time you’ve spent working on it when setting the price?

If you’re happy with the outcome and enjoyed the process, start again. If it didn’t work out how you’d hoped, do some post-sale analysis to see if you missed a trick during the process.

Domain Flipping Tips

Domain flipping isn't for everyone, but it can be a very profitable side hustle or full time proposition if done correctly. Here’s some tips to help make your domain flipping journey a success.

• Study Market Trends - keep a lookout for changes in trends or any emerging markets and research potential keywords related to them.

• Remain Patient - as mentioned before, things don’t happen overnight. Be prepared to wait on flipping some of your domains.

• Trademarks - be very careful with your domain name selections. Buying domains with any sort of trademark could lead to legal implications.

• Begin Slowly - test the water with some lower price domains to begin with. You can increase your investment later once you have more experience.

Advantages Of Domain Flipping

• High Profit Potential: buying the right domain names can lead to you flipping them at impressive prices.

• Low Cost Startup: domain flipping doesn’t necessarily need huge sums to get started. Some domains are available for next to nothing. We are talking 1 pence here!

• Passive Income: if you have a main job, or if you're a student, domain flipping can also be done as a side hustle in your spare time. You can park the domains or even advertise on them.

• Flexible and Diverse: domain flipping can complement other interests or side hustles to increase your investment portfolio. This might include dealing in stocks and shares or real estate. 

• Scaleable: domain flipping can be as big or small as you wish. You can start small and continue to grow your domain portfolio as your experience grows.

Conclusion

Whether you choose to do it full time or as a side hustle, domain flipping has the potential to be very profitable if done correctly.

By carrying out thorough research on keywords and market trends, you will be in a better position to buy the better domain names. Combine your research with the best selling platforms and it’s possible to make significant returns.

Remember, money won’t just land in your lap. You’ll need to put some effort into your investment in order to maximise your returns.

Not every domain will be profitable but with patience and continued experience, you can use domain flipping as a form of income.