Oct 28 2008

Flipping Domains For Profit

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.

Adding Value

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.

The Flip

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.

Guys, make sure you follow me on Twitter here and check out my blog iDezy.com updated daily with the best resources for web workers.

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14 Comments on this post

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  1. jackie sheeler said:

    i already knew about freshdrop, but i had absolutely no idea where to go to sell a site. not sure if this is something i will pursue, but it’s great to have the information. thanks!

    jackie sheelers last blog post..what’s in a vote?

    October 29th, 2008 at 7:26 am
  2. Dennis Edell said:

    I’ve heard more then once that when the blog is transferred, all PR, backlinks and so forth disappear…no truth?

    Btw, add the email option to the RSS on iDezy and I’ll subscribe ;)

    October 29th, 2008 at 8:01 am
  3. Anthony said:

    Dennis in my experience the PR hasn’t disappeared but I guess thats always a risk. I often hold domains for a few months, waiting for Google to update the PR anyway.

    And I have also enabled email subscriptions on Idezy for you. The link is on the sidebar.

    October 29th, 2008 at 7:42 pm
  4. IronBlogger said:

    I have never been in the domain flipping business yet. I might try it out sometime but for now I’m just too busy with my own blog.

    October 30th, 2008 at 3:27 am
  5. Dennis Edell said:

    Holding is a good idea. even if it was a waste of money, at least you didn’t waste time also building on it.

    Dennis Edells last blog post..CommentLuv is Back! H U G E Thank You’s To It’s Tireless Creator!

    October 30th, 2008 at 8:54 am
  6. AffiliateObsession.com said:

    Now this is something I would love to have more time in the day for. I feel like I know I could create a couple valuable sites from PR’d domains, I just don’t have enough time to do it.

    Thanks for the post.

    October 30th, 2008 at 1:16 pm
  7. Minnesota Attorney said:

    Great ideas. Thanks for the mention of FreshDrop—I hadn’t heard of that and plan to check it out.

    By the way, Google has said that sites may lose PR if they dramatically change content. Under your plan, you would be replacing the content of the site from what it was before to your Wordpress blog. Have you experienced any loss of PR from this?

    Minnesota Attorneys last blog post..Blog Law 101: Keeping Your Blog Legal

    November 1st, 2008 at 5:42 am
  8. save and go green said:

    Not a bad idea. It can take some work and I don’t know how worth it to make an entire blog and only make $100 at it.

    save and go greens last blog post..Maryland Environmental News: October 2008

    November 1st, 2008 at 8:35 am
  9. Anthony said:

    Personally I havnt had a drop in PR when changing the content – but like all investments I guess there are risks involved.

    November 1st, 2008 at 3:47 pm
  10. EasyProfitPack said:

    I think this is a safe thing to do,flipping is something that you can rely on.

    I have has some PR drops issues and also some Fake PR issues, but they are just minor glitches and I think one learns to move on.

    November 4th, 2008 at 5:07 am
  11. Missy @Net Media Blog said:

    Hi, Anthony:

    Wow. How long has it been since i was last here? I didn’t know Matt was no longer at the helm. I see Anthony Feint is.

    If you bought it, nice score on the blog. Matt did a good job with it.

    As for flipping domains, yes it can be profitable. Key is niche and keyword research. Start on the low end and work to bigger flips.

    There is more to it than that. But that is the basics. The 101.

    Nice to meet you Anthony.

    Missy @Net Media Blogs last blog post..Problogger Launches Twitter Tips Blog: TwiTip?

    November 6th, 2008 at 10:37 am
  12. Anthony said:

    Missy, i dont own this blog im just a contributor some of the times.

    November 6th, 2008 at 1:26 pm
  13. teraOm said:

    More often than common, i buy the domain and i sell it. But this time, i am lost. I bought “suggest.pro” and “siteflip.pro” and i am looking for buyers.. Hope i catch one soon. BUy why sitepoint and not sedo?

    November 10th, 2008 at 3:10 pm
  14. Jeremy said:

    Anthony-

    Thanks for sharing FreshDrop.net, I have been looking for something that lists domains with PR and has the ability to filter by TLD, etc but for some reason never found that one. It looks like it will be quite useful!

    Keep up the great work,
    Jeremy

    Jeremys last blog post..Top 3 Reasons Why Heated Seats Are Evil

    November 11th, 2008 at 3:39 pm

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