A Professional Approach to Domain Flipping (101)

Domain flipping is the act of buying a domain name and selling to another for a reasonable amount of profit. This explanation gives the business a sense of oversimplified simplicity. Unfortunately, most people are quick to jump into this and are quick to jump out when their fingers have already been burnt. It is easy to go to a registrant and register for a domain, but when it comes to selling, you will find out that it is a much harder game.

It may be difficult especially when you have not made a due diligent to research about the prospective name that you want to buy. Some just trust their guts and buy arbitrarily without making any research. They might be lucky to sell for a good profit, and they will be out there in forums shouting, ‘facile’( Facile is a latin word for easy). The difficulties become bare when he is not able to replicate his success consistently over time. So he is out of business, for the soul of business is consistency.

To be consistent and successful in domain flipping, you must have to approach it like a professional. The following tips will help you in doing that.

Learn what constitutes a Valuable domain name

If you must buy to sell, you must buy a name that has value. It is the value that is in the name that the buyer will be going for. We dealt extensively with this in the post ‘how to determine the value of domain names’. In this

regard, a name you will be buying to sell, should fall under a nitche that is competitive. The more competitive a nitche is, the more the need to buy a name that is SEO friendly. When you get this, you have gotten gold in your hand. Domains with trademarks can be also profitable if you got good negotiation skills. There are other tools to help you make your research. We shall publish it later.

Pricing

For newbie, I would recommend that you do not become greedy. For a start, make a rule of thumb to sell for 70 to 100 percent profit or less. With time you will have enough experience to convince a buyer to pay $70,000 for your domain. All those that sold on that price did not just start at the level on their first day. To be able to sell, you must be able to negotiate well. For instance if you want to sell at $2000, you can reasonable tell the buyer $3000 and allow him to gradually beat down to $2,000 or bit less. From experience, buyer feel more satisfied this way.

The Business of Selling

You may have gotten a gold mine, but it will be of no use unless you sell. If you are certain about the worth of your name, you can choose to register it with auction sites or advertise it in forums that have similar nitche. Alternatively you can email potential buyers, and express your willingness to sell your domain to them. These shall be covered more extensively in other posts.