Domain flipping is a hot topic, and this 28 page ebook is right on the mark.
What Is Domain Flipping?
If you know anything about the real estate market, you’ve probably heard the term “house flipping” used. Investors can make money by house flipping in two ways: They can either find homes below market price, buy them, and resell at market value, or they can buy fixer-upper houses, make repairs and improvements, and sell them at a higher price that reflects the increase in value.
One of the problems with house flipping is that it requires substantial amounts of money to change hands. Although it is possible to obtain financing to buy the properties, the money involved carries with it a certain amount of risk. Many a real estate investor has made a living through house flipping, but it can be tough to get started without a financial cushion.
Domain flipping is based on a similar concept. It involves purchasing domain names (also known as virtual real estate) and selling them for a profit.
What Can I Do With Domains?
There are three basic strategies that domainers use to profit from their domains. Some use one of them, while others use a combination of two or all three. Here is a brief look at them:
Some domains are so great that they can stand alone. You can sell these for a great profit without building a website. These types of domains are pretty hard to find, and if you do find them often have a rather large price tag attached. But you can find good deals on such domains if you know where to look.
Those who choose to go this route often deal in a large quantity of domains, and they usually target others in the domain business. It’s kind of like selling wholesale in the world of physical products. You sell a domain to another domainer at a profit, and he builds a website for it and sells it to make a profit for himself.
Park for a While, Then Sell
You’ve probably run across a parked domain at one time or another when you were web surfing. They’re those sites that only consist of a page full of advertising (in most cases). Some domains are parked while their owners build websites for them. But a lot of them are parked for the purpose of generating revenue through pay-per-click advertising, or in some cases affiliate sales. This works best for domains that were once associated with popular websites but have been allowed to expire, or those that receive a great deal of type-in traffic.
Some domain owners leave their domains parked indefinitely, but most park them for a while and then sell them. It’s a nice, easy way to make some extra money from them. It can also provide income while you’re waiting for a buyer who is willing to pay the price you want.
Build a Website
Building a website is a good way to add value where there is little or none. This method requires more work than the others. Because you must build the site and promote it in order for it to become profitable. But it also gives you the potential for greater profits, because it allows you to build traffic before you sell. This will make it far more valuable to webmasters.