Domain Flipping Made Easy
In the decade of the 2000s, during the housing bubble, house-flipping was a popular way to make money. You'd buy a house, renovate it, and then sell it for more than you paid originally. People made hundreds of thousands of dollars this way. But then the housing market crashed, and house-flipping has fallen out of vogue.
In the 2010s, however, the same practice has gone digital in the form of domain flipping. Though the idea has been around since the introduction of the World Wide Web, it's only recently that the idea has become its own cottage industry. Domains are snapped up by buyers, then resold to the highest bidder. On the Internet, your domain is as important as your company name. Big companies will pay big bucks to acquire a domain name that works with their corporate image. Some companies have even paid over $7 million for the chance to nab an easy to remember, relevant domain. If you're going to buy and sell websites, this is the way to start.
Look for Domains that Others Have Missed
The key to flipping a domain is in finding something that's slipped through the cracks. For whatever reason, some domains are registered and then allowed to lapse, then are never renewed. Perhaps the original purchaser went out of business, or their organization's vision changed. Either way, these domains will have generated some traffic along the way, making them especially attractive to someone with a related business. In fact, the business doesn't even have to be related; it just needs traffic. The domain “whitehouse.com,” which many people go to in hopes of finding the President's home, is actually the portal for an adult website. The US Government has tried repeatedly to buy this domain off the person who registered it, but to no avail. The sheer number of visitors they get by accident is enough to make them keep that domain. But when they're ready to sell, they know they can sell it for literally millions of dollars. All because the U.S. Government neglected to register the domain when it first went live, almost two decades ago. For the record, the correct address is “whitehouse.gov” if you wish to reach the President.
Look for Domains that can Be Used in Multiple Ways
There's a humorous thread making the email rounds that talks about domains that mean two things depending on how you look at them. Childrenslaughter.com is one; it's intended to read “Children's Laughter” but then someone pointed out that it could also be read “Children Slaughter” which is an entirely different and very wrong interpretation. But you can use this amusing anecdote to your advantage. Try making up domain names that can be read in multiple ways, making them attractive to more than one type of customer. Also try to use keywords that show up in popular searches, as many people bypass searching altogether and simply type what they're looking for into search bars. If you can buy a domain that features those search terms, you'll have a better chance of turning them over to someone who wants in on that popularity, too.