Can you make a living from domain flipping

Thursday, December 26, 2013

Can you make a living from domain flipping

Domain Flipping is no rocket science. It involves buying and selling of domains, and the profit and loss are determined by simple mathematical calculation. If you bought a domain for $ 100 and sold it for $ 150, then you pocket a profit of $ 50, and if the domain is sold for a price less than $ 100, then its a loss, as simple as that! 

But the question arises, which domains would go for a profit and what is the risk factor involved in this business? First of all, not all domains are profitable. If you just buy lots of domains randomly, then chances are none of them would sell, and you will end up with a heavy loss. Therefore, its vital that you know what you are doing before you actually do the act! 

Before you buy a domain, you should consider some key points like what is the domain name? What is its extension? Is it short, easy to pronounce, looks appealing and brandable? Does it have keyword which are hot and are often used in searches? Is it an aged domain or a fresh one? Does it have a page rank or backlinks and what are their qualities etc. These are some of the questions, which would establish an overall quality and value of a domain. Only when you spend enough time in the world of domains and do proper research, you would be able to develop a sense for domains, and after that you would be able to find quality domains, which would make profitable deals for you.

Promote the domain 

So, you are advised to do proper research before you buy a domain. Once you have bought a domain after thorough research, the next thing that you have to do is to sell it. For that, you have to promote the domain and then wait for the results. 

A good way to sell your domain is by using business forums. There are forums like digitalpoint, dnforum, warriorsforum, flippa etc, where one can find takers for its domain. Most of these forums are free to join and post while some others would require you to be a premium member to be able to post your sales thread on them. Your sales thread should be interesting and informative. You should list the reasons as why one should buy the domain for the price, in which you are selling it. If the domain is good and its price is reasonable as well, then you are most likely to get inquiries for that domain. 

Deal with clients 

Sometimes, the domain would find a buyer easily in a few days or a week. At other times, it might take a bit longer, months or even years! Patience is the key in this business, and you have to keep your nerves at all the time. Also, many a time, you have to negotiate with the price and, therefore, you should understand the art of dealing with clients. The best way to learn it is by experiencing it more and more!

How much can you earn? 

Another question, that may come to your mind, is exactly how much money can you make in this business? Well, as stated earlier, domain flipping is like any other business and the profit and loss are determined as per the overall performance of the domains. There are some flippers, who deal in the lower price segment of domains, they would buy bulk domains cheap ($ 10- $ 50 per domain) and then sell them at a profit of 10-25 %. These are generally quick deals and they trade many domains every day, thus pocketing a decent profit every month. 

Then there are others, who would deal in premium domains. Premium domains usually takes more time to sell and also fetches better returns. Profit made from one premium domain can be more than hundreds of ordinary domains sold in a month. But then, they carry a higher risk. So, at the end of the day, its up to you to decide on which domains to put your money on. If you play the game sensibly, then you can surely make a handsome stream of monthly income from this business !

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