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Today, most individuals and companies register for a domain name to build credibility, positioning of a search engine, increasing brand awareness, and protecting copyrights and trademarks. The term ‘domain flipping’ is still not well-known by the majority population who are less tech-savvy. This article will dig into details to find out what is domain flipping, whether it is a profitable venture or not, and how it is done. A domain name is a string of identification defining a realm of administrative authority, control, and anatomy within the internet.
What is domain flipping?
It is a process of buying a domain name at a lower cost with the intent of reselling it to an interested party at a significantly higher price than what was initially paid. In other words, it is buying and selling of domain for profitability purposes. The domain name being a character of unique strings as it gives directions to a given website; hence it is essential to have it. The main reasons behind domain flipping include having full access to a domain name, register it under your ownership, and sell it at a higher price. If there are domain names readily available in the market at relatively lower prices, you can purchase them immediately. Domain flipping mainly focuses on profit-making because individual domains have different values in the market.
How to do domain flipping
Successfully flipping domains requires a considerable sacrifice in terms of time and effort to make a profit from the sale of domain names.
The following are steps of successfully flipping a domain;
- Knowing your budgetTo start any investment, such as investing in domain flipping, taking time to know your budget through financial calculations is critical. It is always advisable to invest small once you are a newbie in the industry, whereas, with the time you will be able to grow and spend large amounts into domain flipping.
- Hunting for a valuable domain nameIf you intend to earn more cash, you will need to consider searching for a worth buying domain, which is less expensive and has a high potential for profit during selling. The best way is to search for the domain from a known domain provider. Besides, there are several tools which can be used to locate domains relating to specific services, products, or topics. Domain auction is also an option whereby you are able to access a list of several domains being sold at that time. In the process, you need to keep in mind the expiring time of a domain.
- Diagnosing a potential domainAt the point when you discover a domain that matches your financial plan, you will have to invest some energy and time to do the necessary evaluation. Some of the factors that make a domain name relevant include Relevance, Length, Search friendliness, and Brand capacity. Also, you need to carry out some research independently to know if you can, in the long run, transact the domain at a higher cost than you purchased it. Ensure you take a look into the domains’ past selling prices.
- Registering the domain with your account nameThis is the next practical thing to do during the flipping process as you can buy the domain and register it under your credentials. If you drop catch a domain where buyers swoop in and take it after it was fully expired, then the registration is done on your behalf. However, if you find a name by searching, you will be required to register the domain with a regular domain provider. This process is usually straightforward, as it takes less time.
- Looking for your domain’s buyerTo flip a domain, you should find someone to buy it. Finding a potential buyer is the most challenging step of domain flipping process. Therefore, you will need to look for a buyer who will purchase the domain at a profit. For you to attract buyers quickly, you can employ different tactics such as; publicizing your registry, listing with an auction, or by creating a web page for your domain. Once the buyer is found, you can proceed to initiate the selling of the domain.
- Sell the domainSelling is the final thing you should do in the domain flipping chain. The buyer purchases your domain, and the ownership is transferred immediately upon new registration. It is advisable to be extra careful with online transactions by creating an escrow agreement as it will ensure a fruitful exchange of domain and money. Similarly, this is usually a simple process that takes minimum time.
In the past few years, millions of domains have been registered with none being in use simply because domain flippers hoard them intending to resell them to new buyers. Meanwhile, to be a successful domain flipper, ensure that you are conversant with the pros and cons of the flipping process.