Special to the Financial Independence Hub
We’ve all heard of domain names purchased 10 years ago for $10 dollars and selling for $20 million today — or some other story of similar nature. As a result, you might be interested in buying and selling domain names either full-or-part-time for profit. It seems so easy and simple: just pick the right domain name, hold on to it for a while then sell for profit.
But is it really that simple? Well, since everyone is online –you can imagine that the ocean is wide. And you don’t want to start with a bit of research. You need a map, and we’ve created one for you here.
There are millions of domains already registered, especially the easiest ones that consist of one word such as apple.com, Facebook.com and so on. On the other hand, there are countless combinations of available domain names to register, especially if you consider the thousands of new domain name extensions such as .ng domain or .eu domain names.
As you can see, it is critical to keep your focus narrow. What subjects are you already familiar with, which can make the process much simpler? Do you have experience with animals or tech? Have you worked in the entertainment or service industry? Think about the industries you are most familiar with first, and start with that. Why is this important? Well, you don’t want to target prospective buyers based on their potential for sales if you don’t have insight into the industry you are aiming at.
In other words, don’t just rush to buy multiple domain names you think would appeal to health care clinics you’ve identified as potential buyers. You might not be aware of any industry-specific rules that govern facets of legal advertising. You won’t make much of a profit, if any, if you buy domain names your target audience can’t use. This is where it pays off to take the time to understand your audience.
Take the time needed to learn
If you find success overnight, count yourself lucky and one in a million because this is quite rare. Just like any other business, you need the right experience to be profitable at domain flipping. It takes understanding to buy domain names and sell them at a higher rate. You have to learn everything you can about flipping domains before you can start selling for profit.
When you first get started, you might even make major mistakes and lose money over unwanted domain names. You might even miss out on major deals; just due to a lack of experience. With persistence, you will get the hang of it. There is a large learning curve before you become an expert.
You can’t make a living off one huge sale a month
It takes a lot of time to sell a domain name for profit. This isn’t a game of checkers. One sale a month cannot pay for all the money and time you’ve invested. If Phillip Morris is opening up a new operation, you might think of domain names related to their industry.
Look for names that are valuable
Think of ways a domain name would be an asset to the buyer. Think of someone who might benefit from buying a domain name in the space you are targeting. If the roles were reversed, would you find the domain name beneficial? If not, why? Use these answers to help prioritize your search for names. To illustrate, say you are familiar with the vacation rental market, and Asheville is a hotspot for vacation homes. If you had the opportunity to buy ashevillevacationrentals.com for $200, that would be a good buy.
Asheville has many vacation rentals, it’s competitive within the vacation market and it is a world-renowned city also called the Paris of the south. Ask yourself: would you buy this name if you were in the space? If so, why? How much would this domain help a business sound authoritative in their space? If you can answer these questions with confidence, you probably already know who to contact and how to make a compelling case regarding how this domain can help their business grow.
There are still plenty of good domain names out there
More than 90 million .com domains have already been registered. Some people think this means there aren’t many good domains left. That isn’t true, since you can mix two or three target keywords. You can also use domain names that haven’t been used before or are about to expire. All you have to do is use advanced tools for filtering and research. Plus, you never know when a clever name will help you strike gold.
Your domain names don’t always have to end in .com
Again, there is a misconception that good .com domain names are expensive and hard to find. This isn’t true at all. You can find many .com domain names on sale at affordable prices.
Get your feet wet with an affordable domain name in your targeted space. Then, try to continue learning as much as possible about flipping domain names.
Katrina Manning is a published author, content marketer and editor. With over eight years of career writing experience, she specializes in business, tech, lifestyle and digital marketing. Her favorite aspect of writing is the opportunity for constant learning. In her free time, she plays with her pets, volunteers and scours Instagram. Follow Katrina on twitter @kcinnaroll