Flipping Domains For Profit
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This is something I used to do quite regularly. It was both a profitable business and was relatively simple. And now that I am no longer involved in domain “real estate”, I thought I would share with you exactly how to flip domains for profit.
When it comes to domaining there are two paths you can follow. The first is buying really valuable domains such as www.shoes.com and make money off ads. See lots of people type in shoes.com every day without even bothering going to a search engine. But the problem with this method – it requires a huge capital outlay. Thankfully the second option is a lot more affordable, and you can even get started with just $20.
This method involves purchasing domains with PR (pagerank), adding value to the domain, and then selling (flipping) them on for a profit.
Buying the Domain
So logically the first step is to find a domain with PR. Pagerank is very valuable and buyers will pay a premium if the site they will acquire already has PR. But where to find these domains? I have found the easiest way is to use a free tool called FreshDrop. Using FreshDrop you can search through various sources including TDNAM (GoDaddys domain auctions), eBay and Sedo, and rank the domains by PR. I have found many domains with PR and paid only $15-$20. Look for domains that are short, contain no numbers, and have good keywords in them.
My tip is to only buy domains that you are interested in. For example I’m interested in blogging, marketing and design and will only purchase domains based around those themes. Buying domains you are interested in, will make creating content and adding value a breeze.
Once you have purchased a domain the next step is adding value. The easiest way is to use a Wordpress blog – its free, highly customizable and allows for speedy content creation. In terms of content its important to always think quality. Quality content will sell for a premium. So take the time to sit down and write some quality articles that add real value to the site.
And finally its time to flip the site. Don’t be afraid to hold onto the site for a while. If you continue to build backlinks and promote the site, it should only increase in value. Remember every backlink, visitor and blog post will increase a sites value.
For small sites I recommend selling them on DigitalPoint or similar forums. Any site you own, that you expect to sell for more than $200 should be listed on SitePoint. How much will a site sell for? It varies hugely, but I was consistently flipping sites for $100+ profit.