Buying and selling domain names (domain flipping) is not as big business as it was in the good old days. After the Internet bubble burst in 2001, domain names have become significantly less valuable. This is also the fault of Google, but that is another story. The truth is that people do still pay a lot of money for a suitable domain name, so it is possible to make money with domain flipping.
Make Money With Domain Flipping
Build up a portfolio of domain names
This means that you need to buy up some of the domain names that you think are going to be valuable to somebody. They may already be worth more than you paid, or they may go up in value. You must then take them to the open market to sell them online. There are lots of places you can flip domains such as Flippa, and you can even advertise them yourself. You may also wish to solicit certain companies to see if they will buy your domain name. Be wary of companies that claim to sell them on your behalf, as there are few legitimate companies that are willing to do that. The bad ones will take your clients money and leave you obliged to hand over the domain name.
The legal side of things
There are not too many laws that exist exclusively for domain names, but there are laws on things such as rights and trademarks. Make yourself fully aware of the law and how it affects you before you set off on the road of trading domain names. It will help you to avoid some nasty surprises later on.
Negotiate when you buy domain names
If you are not creating domain names and you are buying ones that already exist, then do not be afraid to negotiate. They are probably owned by people like yourself, which will mean that they are probably willing to negotiate. Never appear too willing to purchase the domain name, and even try telling them stuff like, “My friend said you had a domain name I may like.” Play it dumb if you must, but make sure you negotiate a good price because that will help you reduce your cost and make more money with domain flipping
Think about auction sites
There are websites out there that have auctions for domain names. They are similar to the auctions held on eBay, and they allow you to sell your domain name privately. It also puts your domain name on a public forum that interested parties are going to flock towards.
Be careful how you price your domain names
If you are looking to make some money with domain flipping, then take offers for your domain name and negotiate in order to get a good price for your domain names. If you are looking to build up a portfolio, then you should set a price for your domain names and promote the domain names in your portfolio. Figure out your plan of action before deciding how much you are going to charge for your domain names.
Consider a few generic names
You need to pick domain names that are valuable to someone, or that are going to be valuable to someone in the future. Buy a few generic named domains, as you may be able to place them with a company in return for a few hundred dollars. You have to be careful if you decide to create names that are based upon emerging companies or products. You may accidentally infringe a trademark or copyright.
Think about geographic names
There are places that do not have websites based upon them yet, but that are up and coming. There are often small market areas that turn into large market areas and even turn into small amusement parks. They will most likely have a name associated with them, and they may be very keen to buy a domain name after a while. So, snap up those domain names, and the domain names of geographic locations that do not yet have a website.
Buy up domain names with business names
You can target a certain business and buy the domain name that they would kill for. If you can do this before they get in there, then you put yourself in a very good position in order to make some money. Or, you could try tying a certain business type to an area. So, your domain name would be something such as “Newyorkdentist.” Doing this sort of thing may stimulate a little bit of interest if you start soliciting businesses that are related to your purchased domain name.
If you follow these steps and can get creative picking up some domain names, you might be in luck to make money with domain flipping.
Kate Funk is an expert in teaching Finances and Marketing courses at Tutorsville. She coaches individuals in SEO and business networking skills.