What Is Domain Flipping? A Complete Guide
Domain Flipping remains one of the most popular side hustles and a great way for many to make some extra cash. However, you need a good eye for finding a website with a domain and creating value out of it.
Also, website domain flipping is controversial for many because it can sometimes develop issues of legitimacy and speculation. Therefore, it is important to be careful and aware of domain registration and how everything works in order to practice domain flipping ethically.
In this article, we are going to look into what website domain flipping is to give a comprehensive understanding of it.
What is a Domain Name?
Domain flipping can only be practised once you understand what a domain is. Simply put, the domain name is the website name through which your website is identified online. You need your client browser to recognise you online.
So, a domain name acts like an address made of a certain combination of characters, like your company name. It guides DNS, ultimately connecting to an IP address to help your browser find your website online.
What is Domain Flipping?
Domain Flipping is a practice in which you buy a domain name for resale. You can think of domain names as stocks or shares, where you aim to buy them as cheaply as possible and sell them at a higher price.
The right domain name can change the course of your online business, so businesses are ready to pay high prices for them. For example, QuinStreet paid 49.7 million to buy carinsurance.com in 2010.
Difference Between Domain Flipping and Domain Catching
| Parameters | Domain Flipping | Domain Catching |
| Aim | In Domain Flipping, you aim to purchase domain names that belong to someone else. You can do this by directly purchasing the domain name from the owner or by purchasing it once the domain registration expires. | In Domain Catching, you aim for expired domain names. |
| Business Evolution | Here, you identify and acquire those domain names that have the potential for resale. | By targeting overlooked domain names, you bring a potential business out of it. |
| Strategy | You actively search for valuable domains which you can buy and sell. | You wait for the owner to miss out on their renewals |
| Skills required | You need to conduct research and market analysis, have good negotiation skills and understand domain value. | You need knowledge of domain expiration cycles and quick and easy acquisition techniques. |
Profitability of Domain Flipping
Domain flipping has the potential to generate a high level of profit, but if you want to generate a consistent income, patience is key. It is a huge business that has generated millions of dollars of revenue. All you need is a keen eye and, with experience and patience, create a huge opportunity for financial success.
How to Know Which Domain Name is Perfect for Website Domain Flipping?
- Although a domain name extension forms the last part of a domain name, it is still recognised as extremely valuable. You need to understand the specific keyword and how well the extension works. The demand for your domain name and the valuable combination of extensions will help you determine its value.
- Backlinks create authority, especially when they come from a reputed website. Therefore, backlinks are valuable signs that the domain name is perfect for flipping.
- Short domain names are considered more valuable. The ones that have shorter characters do better and have higher demand compared to longer domain names.
- The brand of the website is also an important combination that should go well with your domain.
- Using Google Trends to understand the other factors mentioned above
Conclusion
Domain flipping is an easy side hustle to start, and anyone can do it if they understand and have knowledge of domain value. Don’t forget that the key to domain flipping is expertise, an eye for the right purchase, consistency and a bit of luck and timing.
Ready to get started? Read our blog and unlock the secrets to successfully flipping domain names!