This article will throw some light on one of the best online business models thus, domain name reselling business. And this guide will also throw some light on some vital and important information that’s a mus-know about this business model. Domain reselling or flipping is one of the lucrative online businesses today, with the likes of forex trading, blogging, vlogging, affiliate marketing and few others.
This is a business that if being run well, you can make descent bucks on a monthly basis as well as on a long term run. By 2023, the highest domain name sold was around $30 million. And according to multiple sources online, the domain name is voice.com.
Again this is not all that popular amongst Africans online because most web hosting companies down here in Nigeria, Ghana, Kenya, South Africa, Rwanda, Tanzania etc do not have or provide reselling service.
And mostly, these web hosts have small or less members on their auction and market platforms compared to web hosts in the west like GoDaddy, Namecheap etc.
Contents
- 1 What is Domain Reselling or Flipping
- 2 History Of Domain Reselling or Flipping
- 3 Is Domain Flipping Really Profitable?
- 4 Types Of Domains Preferred When Reselling or Flipping
- 5 Most Value Domain Extensions (TLD’s)
- 6 The Main Stuff You Should Take Into Consideration When Willing To Purchase Valuable Domains To Flip
- 7 How To Check How Much A Domain Value (Domain Appraisal)
- 8 Where To Buy Domains
- 9 Market Places and How To Sell Domain
- 10 How To Make Money From Domains Apart From Reselling
- 11 Legal Side of Domain Acquisition
What is Domain Reselling or Flipping
Domain reselling is the same as flipping. Some people call it flipping because, the motive behind acquiring these domains is to sell them later on after purchase at higher prices. So that’s were the flip word comes in.
Basically, domain reselling is termed as the buying or acquiring of domains names with the motive of building or reselling these domain names for a profit instantly. A real life example is registering or purchasing a domain name for $9.00 and then flipping it for $70.00 or even $150 months or years later. So if you’re able to do this, you will be able to make $50.00 or more as profits.
History Of Domain Reselling or Flipping
According to multiple sources online, domain reselling is has being around for more than two decades. This business model actually commenced when the first top level domain names were released (TLD). Domain business model has been around since then till date.
And what makes this not more popularized than others is, this is a model that will need you to do more research and even after acquisition you would have to wait months or sometimes years to land your right customer.
Is Domain Flipping Really Profitable?
People really ask questions like this online always, and it some how makes sense. Because, the motive to start any business is to make profit. But just as it said, a profitable, successful and long term business will always take you some time.
According to journals online, people do sell domain names for as much as $30 million dollars, $800 million dollars and couple thousands. Every body can do this too, its just a matter of time and following the market trends which will take you months sometimes years. Which is some how difficult and time consuming.
Types Of Domains Preferred When Reselling or Flipping
Apparently, there are two main types of domains flippers and resellers do prefer.
1. Domain with SEO history:
Thus, a domain that good SEO history, backlink history and ranks for few keywords. Here, once, you find this kind of domain names, you will have to use an SEO tool to check its history.
Checking it history, you’ll be taking note of stuff like its recent backlinks, keywords its ranking and how its doing in search engine results pages. The backlinks shouldn’t be from spam websites mostly from eastern Europe and Asia. Also, the keywords should be in line with the name of the domain.
If generally the domain is about toys. The keywords its expected to rank is ones in the toy industry but not contrary stuff like women clothes, banking and brokerage info etc.
Mostly, people that do purchase this kind of domains, want to build it back by creating a new online website or stores. In this case, they will ride on the old backlinks and keywords its already ranking for and tap in its old traffic and new traffic.
To get this types of domain names, you should be targeting websites that do publish list or domains on the internet that are expiring soon. Example of these website is expireddomains.net
2. Domain name value:
Thus, a domain that simply memorable, short, contains keywords and has popular extensions like .com, .net or .org. An example is tuffbiz.com, usvehicles, queffa.com, proagent.com etc.
Acquiring this type of domains really needs good research , experience and good guessing. The best procedure to do this is by, studying trends, tapping in profitable niches or industry, and making these domains short and easy to memorize as possible.
Most online gurus, do advise newbies to use AI domain generators to do this since most 4-6 length domains have been acquired already by pros. And ones available or mostly expensive even though they worth it. An example of AI domain generators that will help you do this is, Namelix and Fast domainer.
Most Value Domain Extensions (TLD’s)
In the flipping market, the most valuable domain names apparently is ones ending with extensions like,
1. .com
2. .net (network)
3. .org (organization)
4. .ai (artificial Intelligence)
5. .tech (technology)
But the most selling domains are ones with extensions like .com and .org. Basically, we will advise individuals new in the business to acquire domains with this two type of extensions. Since its the most popular online and also have lower prices to purchase and renew when it hits its expiration period.
The Main Stuff You Should Take Into Consideration When Willing To Purchase Valuable Domains To Flip
For a domain to be valuable and worth couple thousands or even dollars. They are some key factors that is considered. According to multiple domain appraisal tools, they all review and predict prices of these domains based on factors like;
1. Length:
The lenght of domain names do counts or contribute to the valuation of a domain. In real sense, a domain name pro.com will definitely be valuable than a domain name professionalfootballers.com. This is because, pro is more shorter than professionalfootballers and makes it more memorable easy as well.
2. Branding:
Every business or organization have its own brand. Branding makes businesses unique from others. Branded domains also do value a lot. An example is the Nike.com or gucci.com
3. Memorize:
Just as mentioned earlier, the rate in which your domain can be memorable will also count or contribute to its valuation. And for a domain to be memorable it has to be short and easy. Not only that, domains can be memorable if it name is something we come across in its industry. Like fitnessguy.com, lovestories.com, expireddomains.net. Expireddomains.net is some how a bit lengthy but once you are looking for expired domains, you can never forget such domain name easily.
4. Extension:
The extension is the TLD. There are numerous TLD’s today example of these TLD’s are .com, .org, .net, .store, .tech, .ai, .edu, .xyz, .eu, .gh, .ng, .sa, .ke etc. Individuals willing to purchase domain with SEO value will always go for SEO friendly extensions such as, .com, .org and .net.
On the other hand, individuals willing to purchase any sort of domain once it makes sense to them will go for any extension. But take note that, some extensions do not sell like others. So be well informed to pick domain names with selling extensions.
5. Keyword:
One of the key factors is keyword. When checking the valuation of domains or GoDaddy appraisal, you sometimes get recommendations on keywords that sell high. It is said that when a domain has some set of keyword, its valuation will be high automatically. An example of these keywords are, review, tech, agent, broker, gold, crypto,airline and few others.
6. Niche or Industry:
Since you know now that some keywords do value than others, same is the niche or industry. Domains in industry or niches like finance, business, transportation and technology will surely be valuable because of the popularity and market size of their industry.
How To Check How Much A Domain Value (Domain Appraisal)
Checking the value of a domain is nothing complicated. There are websites that will help you get this done. Also, you have to take note that this value provided by these websites doesn’t necessarily mean that should be the price or value of such domain.
Your domain value maybe lower or even higher than the price these websites will provide. This is because, appraisal tools like estibot analyzes domain names by using their database to predict the price in which a similar domain to what you entered was auctioned or sold on their website.
In this case, if a domain name kwakureview.com was sold $80.00 they would definitely value a domain name meireview.com less than $100.00. Which in a way doesn’t have any strong basis. Because no flipper or reseller will sell his or her domain name meirreview for less than 100 bucks.
Below is some of the domain appraisal tools online apparently,
1. GoDaddy Appraisal (the most popular and trusted online)
2. Estibot
Where To Buy Domains
Every reseller or flipper has his or her own way of acquiring domain properties. Most selling do the duessing and generation of new domains studying trends and exploding topics. Others also auction or buy expired domains that seem profitable.
New and valuable domains
For individuals willing to purchase new valuable domains you can try any of the listed below.
1. Purchase your new domains at web hosting companies like;
– Stormerhost (an African web host where you can buy your domain names at reasonable prices and make payment with visa cards, bank transfers, Paypal and mobile money services like MTN mobile money, Vodafone cash and airteltigo money)
– Namecheap (an American based web hosting company)
– GoDaddy (an American based web hosting company)
2. Auction websites.
Below are all domain auction platforms where you can bid and if you win you acquire these new domains. This is safe and easy like purchasing with a web host because, you will get domain details transferred to your name once you make payment and win bid.
These platforms have what we call escrow that will keep your money and domain is transferred successfully to your name they release the payment to the seller. Just like trading cryptocurrency on a peer to peer website like paxful etc.
And even in the reselling business, there is something called the Fast transfer domain. Thus, sellers put domain names on auction or buy now. And then proceed to verify their ownership of domain. Once this is done, domains are transferred automatically without them doing anything about once requested money is being paid. So in this case you will not have to deal with any seller, platforms below will help you get this done.
– Namecheap domain market
– GoDaddy auction
– Sedo
– Afternic
– Namepro
– Flippa
Expired domains
Individuals willing to get expiring domains or yet to expire domains can use these platforms. Take note that, these platforms will help you located these expiring domain names, and you’ll have to go to auction or flipping websites like Namecheap, GoDaddy or lets say Afternic to check whether this domain is be put on auction there.
If yes, you’d have to purchase through this website or choose to contact the owner to see whether they are going to sell this domain to you. Here you deal with the owner personally no intermediary. To find the details of the owner of a domain, you have to use the WHOIS tool.
Most web hosting companies do that this, you will have to hop on the homepage, put in their domain name and the name, email address and phone number of the owner will pop up.
Below is a list of websites where you can get expiring domain names
– Spamzilla (freemium platform. Thus, you have a free version but will have to subscribe to get full access to the website)
– Expireddomains.net
Market Places and How To Sell Domain
There are several ways in which you cal sell your domain names. But as mentioned earlier, domain names sometimes do not sell faster, and in this case you will have to keep it for months sometimes years to land the right buyer.
There are several ways in which you can sell your domain simple and easy without bargaining with any customer of any sort. Thus, by using flipping platforms the listed below. With flipping platforms, you’ll have to register and list your domain with a tag buy now, make offer, and even auction.
You will then proceed to set your minimum price and then save. And then finally use the Fast transfer option on these platforms. To qualify you will just have verify the ownership of your domain by adding their verification code to your domain DNS. You’ll finally receive a verification code, forward it to your domain registrar, simple where you bought the domain from as in web host.
They will apply this code and your domain will be set on Fast transfer. In this case, if you set a price of $5,000 for a domain and someone searches the domain name or any web host company or try to acquire the domain they get to know the domain is a premium type of domain and for them to get it they will have to pay the required price. If they do so, you will just receive a bank alert and the domain will be transferred to their name immediately after their payment.
Using fast domain transfer is easy and simple, and but you will have to pay a 10% sometimes 30% commission to these platforms for playing as intermediary. Which makes sense absolutely.
Below is the list of some of the popular market place to sell your domain names
– Sedo
– Afternic
– Namepro
– Flippa
– Godaddy auction
– Namecheap domain market
2. You can also list these domains on your website through a blog post:
You also list these domains for sale on your website and if a customer wants to purchase this domain you refer them to the above mentioned platforms like sedo, flippa, afternic, namecheap etc.
According to multiple sources, individuals like to search the domain name they are willing to acquire in search engines before they proceed to purchase. So if you have it listed on your website through a blog post. You will definitely rank number 1 since this is not anything tough. And then, get to transfer this potential buyer to flipping platforms. Example of such listing article is this one here.
3. You can run advertisement on these flipping platform or a general social media ad or search engine ad. Have a banner with a link to these flipping pages where the domain is listed. The more you get the eyes of more customers you can land a sale.
This is not recommended for newbies in the business, since you haven’t made any more money you shouldn’t invest insanely. Might lead to loss of funds since advertisement are expensive today and not guaranteed to work.
How To Make Money From Domains Apart From Reselling
So there, are several ways in which you can make money from your domain before you even land your customer. Just like you can monetized your apps , websites and YouTube channel with ads, you can do same with domain name.
Also, you can ride on domain SEO and previous traffic of a domain by creating a website or even an online store. Let’s dive into how you can do all this;
– Build new website or stores:
Just as mentioned earlier, some domains may have good SEO history in terms of white hat practices when it was in use, backlinks, keywords and few others. Some may be still getting traffic since they may be ranking for some sort of keywords.
The best way or an expired flipper will definitely build a domain with such good history and then sell it later on. Or even ride the way to make money from it through drop-shipping.
– Parking domains:
This is another way to make money from domains. Parking a domain simply means, your domain will be showing some sort of ads or portray some sort of information when an online surfer hops or load the link of your websites.
In most cases, with domain names that still appear in search engine results pages are the best to park. In this case, once the surfer gets on the websites, your flipping platform will either show some ads and if they click on it, you get paid.
The concept is just like allowing Google adSense or any sort of ads monetization on your mobile app, website or even YouTube channel.
Legal Side of Domain Acquisition
Every business model do have some legal sides. And since we are in a civilized world today, almost every aspect in human life have some sort of laws that are set to ensure smooth running’s. So with the aspect of domain reselling and flipping there are legal laws that flippers have to abide in order to avoid legal strikes.
Domain names and brands that should be avoided are ones that are registered legally or trademarked. Every country to have it own laws when it comes to domain acquisition and trademark laws. Your job as a flipper is to avoid these type of brand names, domains to avoid legal hits.
Example of trademarked or registered names are;
– Addidas
– Nike
– Amazon
– Apple
In conclusion,
This is almost everything you need to know about the reselling and flipping domain business model. Just as mentioned earlier, its been around for decades and it lucrative like forex trading, affiliate marketing, blogging etc.
But takes time just like the mentioned business models. This is not a get rich quick scheme, it will take you months sometimes years to get the right buyers. Its not a business that’s going to take your precious time.
You’ll just have to find right assets domains, list them on popular market places, set your fast domain transfer and then forget about it. Another thing to boost your sales, is to avoid over pricing domains.
Try and be realistic with your pricing, short domains like tuffman.com is going for $11,000 and tuffbiz.com is also going for $5,000, queffa.com also, $1,000. These kind of pricing are realistic because these are short domains that are not more than 6 words and with an extension .com.
Lengthy domain names should consider price below thousands for fast sales. We do have couple valuable domains in possession on auction, you can check them out here.
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