Yes, people make profit selling domains every day.
Just like in any other business or industry, when the year settles, the total number of domain registrations in 2019 indicates certain growth for domain industry in 2020. Fact is people are flipping domain names for years. For some, it is an additional income or a part-time job, but those that have a better insight into the industry are making real money and then some. My guess is that you can be one of them too.
A whole industry has been built around domain trading. Most popular domain trading websites are of course Sedo and Flippa, and they are very useful for a quick domain flip or if you want to test a certain domain name for offers and promote it to the market in general. A domain name will get some visibility on the domain market website.
How to start trading domains?
The domain traders (or “domainers” as they are called within the community) can be found on relevant forums and websites through the absolute best place for a beginner is the Namepros Community. There they discuss and give insight into current domain trends and news.
A novice domain trader should decide what kind of domain trade he would like to focus:
- A “quick domain flip” with small profit per sale
- Purchase strong domain names, invest some money and develop them into domain names with high organic traffic so you can resell them later for a much higher profit after holding them for a few years.
Absolutely anyone can go to a domain registrar website and register a random domain name for a few dollars. The truth is that you can have to focus on high quality when you are choosing which free domain name you want to register. This means not every possible domain name you can think of can be sold. Guideline which can help you make a good choice with details on this subject can be found in: buying a domain name: how to make the right choice?
The best course of action is to invest a little money into developing a domain name. Even if you want to flip it fast at a domain market this will add value and strength to the domain name in question, which will lead to higher profit in the end. Domains that have organic traffic from search engines are definitely more attractive to buyers, and get offers very often, while those that look good but have low or no traffic get less frequent offers.
Flipping domain names as a part-time job
In all honesty, most of us have a day-job with a local company because we need a source of regular income to pay bills (rent, internet connection, telephone … etc).
Flipping domain names can be a part-time job and an exciting way to make additional income, and it actually requires a relatively small time investment, meaning anyone can do it.
Naturally, the biggest time and effort investment should be aimed toward researching good domains that are available for registration. Not every random domain that you think of will be a good domain, so I would recommend that you get more insight into that matter from our article in the link.
The most common way for domain flipping is to register such good domain names and list them with domain marketplace websites (such as Sedo, Flippa, Afternick … etc.) and wait for a good-enough offer that will entice you to sell a specific domain.
One major tip is that you should not flip domain with the first offer you get, but instead try to negotiate a better price, with more income, like a true domain trader.
Listing your domains with such domain marketplace websites, besides flipping a domain, is also good for improved domain sale visibility – it is a free “sale” sign for your domains, but it is also a valuable tool for the domain trader for one more reason.
The number of offers you get from other domain traders through domain marketplace websites will give you a better understanding of the value of your domains with the current market conditions.
What this means is that you may want to hold on to domains that get frequent offers, until you get a lucrative offer with high profit.
On the other hand, you may want to drop those domains that are not getting any attention from their target audience, to clear portfolio space and avoid unnecessary renewal expenses. The renewal money you saved and instead be used for new domain registrations that are better and will provide more opportunities for making a profit.
General tips for domain flipping
If you are a professional in a certain business or industry area and have a high level of insight, that can help you a great deal into making a good choice for domain name registration, and a potential sale later.
However, stay away from registering a renown trademark as a domain name because you may quickly lose ownership of the domain name due to trademark infringement. Especially in the US and Europe, trademark infringement is a very serious legal issue, and your domain registrar will not think twice about transferring domain name ownership to a trademark owner.
Domain trader experience tells us that they never sell a domain name with the first possible offer they get. Instead, they try to negotiate a better deal. To do this you should try to get more information about the client which has contacted you with an offer. Make proper research and you will have a better understanding of what are they able to pay for the domain name they want. This will enable you to negotiate maximum profit from a domain sale.
Finally, you may expect to hold some domains for a period of three to five years to be able to develop it properly and sell with a large profit, meaning you will have to flip some domains to be able to sustain other more valuable ones.
Bound for glory on the domain trading seas
There are other tips and tricks I could mention, but as I said earlier, NamePros is the best information resource a beginner domain trader. Feel free to join the community. The best deals for discount and coupon domain name registration will be available here at Dooot.