This is no news flash, but they are not adding any more letters to the alphabet, so as a result, domain names and the reselling of them are and will always be big business. So with a bit of knowledge and labor, they can be an excellent income and investment opportunity.
New domain name registrations, just in the later half of 2010 alone, grew by more than 3.1 million according to reliable sources. This resulting in more than 196 million Top Level Domains (TLD) registered throughout the world. Like the conventional real estate saying goes: ‘They’re Not Making Any More Land,’ what’s also true is that they’re not adding any more letters to the English alphabet. So words that make sense, registered as domain names are becoming increasingly scarce and valuable.
As a result, businesses, marketers and consumers are turning towards the domain “aftermarket” to find suitable domain names that they can purchase and use. This has created a secondary market where Web professionals and domain name investors position themselves to generate substantial profits from the ‘flipping,’ of previously registered domain names and websites for profit. ‘Buy Low’ and ‘Sell High’ has never rang more true.
If you happen to have some experience in Web page design, have a talent for creating unique content, know how to build links to a site, or are an affiliate marketer, you are ahead of the game.
In order for you to successfully flip a domain name or a website, you must first know where to find and recognize a domain name with potential. This gives you the opportunity to turn an initial few dollars into potentially thousands.
Where To Find Valuable Low Cost Domains With High Flip Value
Finding the domain names that are for sale is actually the easy part of the flip process.
You can go to the various domain aftermarket sites such as:
Sedo.com, BoxCar.com, NamePros.com, Flippa.com, Devsa.com, Afternic.com, and SnapNames.com just to name a few.
They all provide opportunities for you to acquire domain names, either once they expire if they are not renewed, or on an auction/bidding basis. If using these services, you should be warned beforehand that you will encounter domain owners who are selling their domain names for what seems like outlandish prices. Like anything else in life, domain names are worth whatever anyone is willing to pay for them.
You need to be aware of the following ‘keys’ that buyers are looking for in a domain name that you are looking to ‘flip,’ while not getting burned in the process.
The Main Qualities Of Domain Names And How They Can Affect The Price
Keep in mind that domain names, as well as websites are not all created equally, unless the domain name is a single word, short, memorable or means something. There are a few distinct well defined qualities of domain names that presents the best potential opportunity when attempting to turn the initial investment into a profit.
Are There ‘Keywords’ In The Domain Name
It’s been proven that if there’s ‘targeted’ keywords in a domain name, then it has tremendous advantages for naturally ranking high in the search engines for those terms. Hyphenated as well as non-hyphenated domain names share this advantage. The more exact of a match the keyword is, the domain can easily claim one of the top position on Google with hardly no effort. This is one of the best advantages and reasons for owning a generic keyword relevant domain name, and the very reason why they are so valuable.
Natural Search Engine, Social Or Advertising Traffic
The domain names in the secondary aftermarket that sells for the most profit, (other than single word domain names such as Money.com) all have one identifiable thing in common, they need to have pageviews and unique visitors to the site.
Looking at the different stages of development for most of the domains that are for sale, the most attractive are the ones that already have some unique visitor traffic, either from well indexed natural search, social networks or at times from PPC advertising. These factors are the key measures to a site’s profit potential.
The best domains to purchase, if they have websites attached to them, are the ones that already has ‘indexed’ natural search traffic from the search engines. Domains with traffic derived from social networks or paid advertising networks, will obviously require further investment in time, effort or money for the purchaser.
A Websites Potential Earnings
The domain name aftermarket is full of domains which are of low quality, or have questionable potential. Domains which typically sell usually have some type of verified track record for making money, or the potential to develop revenue streams. When a domain has demonstrated the ability to earn money from the traffic it receives, it will ultimately rise in price.
The biggest challenge of buying websites that already have existing revenue is doing the due diligence that’s required. There can also be a bit of a legacy effect, as there can be the previous owners bookmarks that may not respond or apply to the new domains ownership or content. There should also be concerns if the previous existing revenue is based solely on results of a well-managed PPC campaign.
It’s imperative that you investigate and understand any and all of the previous sources of revenue, as well as the costs that’s required to maintain them. These are just a few of the issues that you should be looking for, if purchasing a domain to flip for profit.
Flipping Domains If You Are An SEO or PPC Expert
You may be into Web design, but not fully skilled at driving focused traffic via SEO or social media. Or, you may be an expert in Pay Per Click, but inept in designing a site. The solution is selecting domain names which are the most aligned with your skills.
Domains If You Are A Designer
There are literary thousands of domains available in the domain aftermarket that are looking for professional Web design being applied to them. So if you have design skills in: templates, Joomla, WordPress or Drupal, you may just be surprised how much you can increase the value of a domain, just by using an aggressive compelling layout to the existing content.
Domain Names If You Are A Content Developer
If you are a skilled copywriter or a content developer, then flipping domains for profit may be for you. The Internet is littered in a world of poor duplicate ‘spammy’ content. So if you’re able to write creatively on a variety of niche topics which is related to a domain name, do so, as these domains are always in high demand.
So consider buying a few modestly priced quality domain names, and start writing unique content using the WordPress platform. Choose the content themes carefully by identifying keywords as well as phrases with the highest commercial value, which should result in higher profits.
Domains Names For SEO Marketers
If you specialize in SEO, you should be able to generate the greatest profits from flipping domain names. If you are able to take any domain or existing website with little or no traffic, and then send targeted traffic to it, you’ll obviously increase the profit value of that domain.
Also, if you have particular SEO skills in building links for sites, they are the most suited and profitable for flipping. These domains are the most sought after, as relevant inbound links is the common variable of any website valuation.
Domains If You Are An Affiliate Marketer
Affiliate marketers have an inherent edge when it comes to flipping domain names. Being able to identify the best and highest paying affiliate offers for the website’s incoming traffic, can easily turn a poor performing website into a significant “high profit” flip. Domains of this type are usually sold anywhere from 8 to 10 times the monthly website earnings.
Buyers And Sellers Beware
Flipping domains can have a degree of risk involved, so be cautious. Just using appealing themes, writing compelling unique content, building links or establishing affiliate revenue streams are never a guarantee that the domains will sell.
For this reason, there are domains that are listed for thousands of dollars, as desperate ‘flippers’ make every effort to recoup the funds that they have sunk into a particular domain. But if you use the skills that you have acquired as a Web marketer, flipping domains can be a legitimate possibility for additional income.