How Does Domain Flipping Work?
Anyone who has ever heard of house flipping or watched one of the related reality shows will probably have an idea of what domain flipping should be about. The same principle applies: buying an old domain for a low price and aiming to sell it on for a higher price; thus, making a profit. Here is how domain flipping works in more detail.
What is a Domain?
A domain is an address (the www.whatever.com url) assigned to a rented space on the internet. With this space, an individual or company establishes a website address for a company, cause, or forum. Many of these ventures fail to thrive and the person who bought it stops meeting monthly payments or maybe never builds a web page. People give up their domains for various reasons and when they do these domains are put on the auction block.
Check out the screenshot, above, that shows (from Wikipedia) the oldest names on the internet – “Symbolics.com” was the very first, registered in March 1985. I doubt the current owner has any intention of selling it!
A specific site handles these auctions, posting all the available domains a person can buy. These are listed ahead of the auction date so that prospective buyers can research these sites using analytic techniques or software to determine their potential ratings. These analytics will tell a person how many backlinks already exist and rate the SEO keywords present on the site. If a domain is already established, it is worth more than one which has yet to earn any significant ranking. Before we continue, although an older video, it briefly outlines what one guy was doing a few years ago regarding earning money through domain flipping.
Value of a Site
Patience and money are required to successfully flip domains and make a living or even a bit of income for extras. This is not the sort of thing you learn to do in as long as it takes to watch a webinar or read an informational e-book. One must spend time browsing domains and learning the ins and outs of rankings, backlinks, SEO, successful website structure, and more. With this knowledge a person more easily identifies sites which could be bought cheaply and sold for a profit. Anyone who watches house-flipping shows knows there is risk involved, and in the midst of many successful ventures there will be some failures but that from these failures one learns useful information.
Sometimes a website needs renovations to structure or content. These adjustments will easily be adapted by the new owner to his or her purpose, especially if the website is local and has a niche audience already. With a local audience in mind, the SEO keywords are partially in place. Experts recommend aiming to buy domains from very specific regions and even in relatively limited markets: catering, house sitting, pet grooming, etc. These guarantee a very particular audience whose interest is easy to grab. Selling a domain to someone whose business is directly related to an existing website is a lot easier than targeting a wide audience of business people selling unspecified products or services where a lot of the content would have to be changed and re-organized.
Any time a site appears to have been listed well below its market value you have a chance to make a profit. It might not be a domain-flipping event, though, so have patience if you can afford to wait for the highest bidder.