Domain name flipping can be a very hot-button issue for many people. Some have made careers out of it, while others consider it to be taking advantage of those looking for a great domain name for their website.
Don’t know what all the fuss is about? Not to worry: in this tutorial, we’ll explain what domain flipping means and how the process works.
Domain Flipping Definition
Domain flipping is the process of purchasing a domain name with the intent of quickly selling it at a significantly higher cost.
This is similar to house flipping, where a home is purchased and fixed up in order to sell for a quick profit. Unlike house flipping, however, there is essentially nothing to be done with the domain name in order to increase its value. Therefore, the key to a successful domain flip is being in the right place at the right time in order to acquire a valuable domain name before it is given a premium price.
How to Flip a Domain Name
1. Find an available domain name
If you’re lucky, you’ll stumble across a great domain name by searching at a domain provider.
Drop catching services are also available to help secure a domain after it expires.
Upon expiry, a domain enters a Redemption Grace Period (RGP) giving the owner one last chance to reclaim it (typically 30 to 90 days). After this period, it is then made public for someone else to register.
A drop catching service allows people to bid on a domain name that is currently in the RGP and soon to be available for registration. The service then selects the person with the largest bid and then attempts to register the domain on their behalf at multiple domain providers the moment it becomes available.
Although this does not guarantee that you will end up with the domain, it is your best chance of securing a domain once it is available. If you’re looking for a drop catching service, we recommend NameJet.
2. Register a domain name
If using a drop catching service, registration will be done on your behalf.
If you find a domain name through a regular search, you will need to register it from the domain provider. This process is usually fairly straightforward. You will probably only need to register the domain for one year since the goal is to turn it around as quickly as possible.
3. Find a buyer
This part can be a little tricky, but there are a number of options available to you.
Create a Landing Page
Make a basic webpage explaining that the domain name is available for sale and provide a way for people to contact you if they’re interested in acquiring the domain name.
Disable WHOIS Privacy
Normally we recommend enabling WHOIS Privacy to hide your contact information from the online WHOIS database; however, in this case, disabling this will make it easier for a person interested in your domain name to find you.
List on an Aftermarket Service
Services like Afternic and Sedo allow you to list your domain name for sale at whatever price you’d like (or accept offers) and allow people to purchase your domain.
4. Sell the domain name
Since this transaction will be happening online with someone you’ve likely never met before, you’ll want to use a service like Escrow to ensure that the money and domain name are successfully exchanged. Otherwise, you’ll risk being scammed by giving away your domain name without ever receiving the money for it.
What are your thoughts on domain flipping? We’d love to hear them in the comments below!