Let’s get straight to the point: flipping domains for profit is a thing. And it’s done legally and on a large scale. So it’s worth knowing how and why this is done, what you need to watch out for, and how you can get involved.
Why Are Domains Flipped?
The motivation behind why anyone would flip domains for profit is basically the same as the motivation behind buying a diamond: you see a beautiful product that you want and you figure out a way to make money off it. Whether you buy a diamond to impress a girl or sell a domain to make some quick cash, money is the common theme.
How Is It Done?
The way this is typically done is through an agency or company that specializes in buying and marketing domains for profit. They are called domain flippers and they buy cheap, poorly designed domains that they then remodel and promote. The basic idea is that you buy a cheap domain and use it as a template to build a better one. The key to this strategy is to find a good domain that has some growth potential. So it’s better than it’s been in a while, but it still lacks the charm of a.com or a.net.
The Most Coveted Domains
This is where things get interesting. The domains that get flipped are almost always coveted, well-designed domains that have been around for a long time with a good amount of history and brand awareness. Some of the most popular ones that get flipped for profit are eBay, Amazon, and Craigslist. These are some of the biggest and most successful sites in the world and they all have one thing in common: they were not designed for profit, they were designed to be used as eCommerce stores, online marketplaces, and/or as classified ads.
How Can You Get Involved?
All of these sites have one thing in common: they are all relatively easy to build. So if you have a decent amount of coding knowledge and you’re looking for a side gig, you can look into joining a small team of builders and getting to work. You’ll need to learn the basics of WordPress website building and the ins and outs of SEO (search engine optimization). Basically, you’ll be creating and designing websites that allow customers to purchase products or services online. You can use tools like Shopify, Wix, or Google’s own tools (Google Ads) to get the word out about your new business. You’ll be tasked with getting potential customers to come back for more, to complete a purchase, or to simply engage with your content.
In short, if you can build a website, you can build a profitable domain flipping business.
Avoid These Things If You Want To Go Larger
Doing business with a chain of jewelry stores that buys and flips expensive, high-end diamond and precious metals for profit is a bad idea. Yes, it can be done and yes, it’s legal, but you’ll need to prepare for the worst-case scenario and you’ll need to diversify your investments. Precious metals are volatile and they can go up and down in price at any time, so you won’t be able to predict how much your investment is going to be worth. What’s more is since these are businesses, they have to abide by all the same legalities and regulations that regular businesses have to follow. Which means that if anything were to happen, the government could come down hard on them.
What About The Legality Of It All?
It’s important to understand that while most people think that buying and flipping domains is a rather new phenomenon (it’s not), the legality of this has been established for a long time. What’s more is a lot of the legislation that deals with this sort of thing is pretty specific, so unless you want to go down a very specific path, you’re better off avoiding this line of work.
If you’re looking for an easy way to make money off a side gig, you can’t go wrong with domain flipping. It’s always been a cash-cow. And it still is. So much so that buying and marketing domains for profit is now a full-time job for some people. All you need to do is find a good domain and offer the right price. And if you get the right price, you’ll never go wrong.