Flipping domains are similar to flipping houses in real estate: You buy a property with potential, improve it, and then sell quickly for twice the profit (or more). Between 2005 and 2012, internet marketers had been obsessed with flipping domains… and for good reason. Many were successful at buying plain old domain names, spicing them up with keyword-stuffed content, giving them much-needed traffic, and then selling them off to the highest bidder. But in 2017, can this still be a viable online business?
Concerns with Domain Flipping in 2017
Domain flipping in 2017 can be risky due to several reasons:
• The world is running out of good .com domain names.
• Google algorithm updates make it hard to rank new websites quickly
• The secret is out on how to succeed in flipping domains. Anyone can flip domain names with a bit of investment, a good copywriter, and proper tools for traffic-building
• Scalability is an important element to succeed in this business, which means you’d need more money, time, and effort to buy and sell as many domains as you can.
However, as website broker EmpireFlippers has proven, domain flipping can still be a lucrative online biz, even for newbies. To date, EmpireFlippers has sold over $26 million worth of websites in their marketplace. But before your eyes get twinkly with ideas, know that these success stories aren’t easy to replicate.
5 Elements of a Successful Domain Flipping Business
In the domain flipping business, you have two options:
METHOD 1: Find a domain name with huge potential and sell it as is – This option is tricky since many good domain names have already been bought, so your chance of being the next Mike Mann is highly unlikely. Understand that unless you have a single, generic word as domain name like these world’s highest-selling domains, it could take months or years to for your domains to sell.
METHOD 2: Find a domain name with huge potential, turn it into a website, and sell it – The second route is more doable, since established websites that already generate some kind of income are more attractive to buyers.
If you’re really interested in this business, only move forward if you have these 5 things:
To make money, you’ll need to invest a huge chunk of money in building a buy-and-sell domain biz. Domain names don’t come cheap, and to increase your luck in selling these domains, you’ll need to acquire a portfolio of domains.
If you’re planning to develop these domain names into income-generating websites, you’ll need to hire someone to write texts (a web content writer), someone to build links (a SEO expert), and someone to keep track of all your projects (an assistant) if your goal is to build a large-scale domain-flipping business.
2. Solid Plan
Just like launching any kind of business, you’d have to perform a lot of market research and planning. If you’re going with method 1, learn everything you can about parked domain names, finding potential buyers, and the auction process.
Method 2 requires a lot more work, so it is always best to plan your attack. The upside of starting a business like this now is that many people have shared their experiences from domain flipping. No matter if these lessons are good or bad; reading up on these real business stories can help you build a solid plan.
3. Plenty of Time
If you don’t have a lot of money to invest in employees and you’d rather work on your domain portfolio by yourself, you’d need plenty of free time. Generally, mini sites with 5 to 10 pages of content can be built within 5 days, while authority sites with over 10 pages could take up to two weeks. This amount of time would depend on your writing skills and knowledge of SEO techniques.
4. Openness to Diversify Your Business
Before EmpireFlippers became a website broker, the internet marketing duo Joe Magnotti and Justin Cooke had been sharing how they flip sites for cash on their widely-popular blog and podcasts. They relocated to the Philippines, hired locals to create content and build traffic, and then literally built hundreds of niche sites that earn from either AdSense ads or Amazon affiliate commissions. Every month, they chose low-earners and sold these ready-made sites on their marketplace.
Today, third-party sellers can add their sites to the marketplace, auction them off, and EmpireFlippers earn a commission from every sale.
5. Business-savvy skills
Flipping domains may be a web-based product, but it is still a product. To succeed in this field, you need to determine when you’re at a loss for a particular domain and decide when to call it quits. For large-scale operations, you should have advanced bookkeeping skills to keep your business afloat.
It’s not too late to flip domains for profit, but this kind of business isn’t for everyone. You need a workable plan, business-savvy skills and willingness to invest money, time, and effort to make it big in domain flipping.