The Basics of Domain Flipping

Domaining or Domain Flipping has been a very profitable business for a number of years, now. It has been going through a bit of a recession as of late, but that’s probably due to the influx of newbies and scammers to the business. As long as you present yourself well, and show that you are not a scammer, then you will have no trouble in the domain flipping business. Also, since everything in this business is done online, after you’ve flipped your first domain, you can be like “Yeah, I make money online!”

Domain flipping is in and of itself, extremely simple. All you have to do is register a new domain that is available, and sell it for more than you registered it more. For a registrar, I recommend Namecheap. Namecheap allows you to transfer funds for a PayPal account that does not have a credit card attached to it, unlike GoDaddy, or some other registrars. As a bonus, I will tell you Namecheap’s coupon code for this month; It’s MAYFLOWERS. Now, what I just explained is the very basis of domain flipping, but it might only make you $1-$30 depending on the domain you get.

If you’re wanting to make more than $30 a pop, they you’re going to have to invest time, resources, and maybe even some money into the business. First of all, people want domains with some sort of traffic. There are a variety of ways you can obtain traffic, but there are two good free options. These two free options are, PPC websites, and StumbleUpon. PPC websites are easy, but they take up some of your precious time, but they are a viable option for the domainer who isn’t lazy, and has a lot of free time. Basically, you click on ads, and/or view other people’s websites in exchange for credits, which you can use to put your website in the site viewer. This will guarantee that people will view your website for at least 30 seconds, and can bring some significant traffic to your website. Most people know what StumbleUpon is, but just in case you don’t know, it is a social bookmarking site, where you submit websites and people vote thumb up or thumbs down and can give reviews when they “Stumble” onto it, which means they clicked the Stumble button which gave them a random website according to their interest. Another good way to advertise the website and get free traffic is to put the link in your signature in any forums you are active in. Now, this link will appear under every single post you make, and if you are active on forums like I am, then that is a lot of links, and a lot of potential visitors.

Putting good original content on your site is also a good idea. This will increase the value of the site, which will allow you to sell the content with the domain to increase your profits. You can hire a freelance writer like myself to write the content for you, or you can save the money and just do it yourself. See Jacob’s post on Hiring and Running Effective Content Writers if you are looking to hire freelancers. Doing it yourself is a viable option in this case, even if you are not the best writer, because as long as it is original and SEO friendly, meaning keyword rich, it will serve its purpose of driving free traffic from search engines. You can also include links to other privately owned websites in your content. The private website owners are almost always curious as to who is linking to them, and will most always visit the site that is linking to them, which in this case i s yours. Even if they just visit one time, that’s more than no one visiting you site. Also, think of how many links you can include in one page or article; that’s exactly how man back visits you can expect from other webmasters, who will be unknowingly helping you flip domains.

Now that you have the domain, and its getting traffic, you’ll need to track it. Otherwise, you’ll have no proof that it is receiving traffic, and you won’t be able to sell the domain for what it’s really worth. I recommend Google Analytics for this, as it is completely free and completely comprehensive. The reporting takes a little while, but you shouldn’t mind because the service you are getting is great, and it’s from Google, so you know it’s reliable. On the subject of selling, there are two types of places I suggest that you sell domains. There are forums such as DigitalPoint and SitePoint, where you can buy and sell domains that are on the cheaper side. Then they are domain auction sites like Sedo with listing fees and commissions similar to eBay. Obviously, Sedo is going to be better for domains that are going to cost more money, where the listing fees and commissions won’t wipe out your profits from your domains. Forum selling and buying is completely safe so long as you are cautious. I got a domain for only $6 on there that I plan to develop and then flip, I just always make sure the person has iTrader, or I have seen them do successful deals before, or hopefully both.

Now that you know everything you’ll need to do to start flipping your domains, go out and do it! Let me know how my guide helped you, and if you have any more questions, I’ll try to answer them.

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4 Responses to “The Basics of Domain Flipping”

  1. Chris Moran says:

    Nice writing style. Looking forward to reading more from you.

    Chris Moran

  2. Karen Zara says:

    Thank you for posting this, Zac.

    Now I have a suggestion for you: why don’t you write a step-by-step guide explaining exactly how to transfer a site’s domain and content to the new owner after it is sold? I’m sure many people are still confused about how to do it. Your guide would certainly be of great interest for many readers. ;)

  3. Zac Davis says:

    Thanks for the complement, Chris. I added your blog to my Google Reader.

    Karen, great suggestion! I’ll write up a post on that next. I wrote this one in my notebook in study hall at school :) The same will probably go to for the next one.

    Zac Daviss last blog post..Free “Sponsored By” Links

  4. I am doing some research on domain flipping trying to decide if it is something I want to do. So far I am having a hard time understanding why there is flipping in the first place. I go and buy a name for $7 and resell it for more. What I don’t understand is, why are the people that are buying these names from me paying all of this money when they could have bought it for $7 like me? The info. I have found is very vague on how it all works. Seems the only way to find out is to pay for the guide. I am trying to find this stuff out before I invest the money. Does anyone have a good resource I could go to and who has the best guides?

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