Five Reasons Why Domain Names Are The Best Investments

[Domain Author]

Having been into the domain business for quite some time now, here are some good reasons why domain flipping business is one of the best investments ever:

1) There is very little investment involved. You just need some $100 as an ideal investment to start your domain business. If $100 is too much, you may start off with as little as $7-$10 which is the registration fee for a .COM domain name.

2) The registration process is extremely simple and even a newbie can start-off very easily. There are no documents to be submitted. Just find a good name and buy it. You have at least one year to find a buyer for your domain.

3) The ROI or Return-on-Investment is huge. You may be amazed to know that even hand-registered domains which cost as little as $10 sometimes sell for mid $XXXX range. That is like 500 times the cost price. Even if you sell it for $100, it is 10 times the cost price. In most of the businesses, even 50 percent profit is a big figure whereas in Domain business, 50 times is also possible.

4) There is plenty of information available online for free, to study the business model, do your research and then enter the industry. There are plenty of free online tools that can be used to grab the best domains possible. There are some good interviews and case studies to learn from, all available for free.

5) You may make some instant cash by flipping some good hand-registered brandable names on forums. It will take minutes before someone will make an offer or bid on your listings if the name is really appealing. However, our aim is to find end-users for the domains because they are the people who would pay the true price for your domain.

Hence, there are ample opportunities for making money in the Domain Flipping business provided that you do your research properly and understand the art of buying and selling.
In short, domain flipping is an art that can only be developed by experience. It is about knowing what to buy, when to buy, who to sell your domains to and, when and at what price should you sell them!!

 

[Biggie]

you forgot to put more "can be's" in your post.

like when you say that "ROI or Return on Investment is huge", should be, "ROI can be huge" and also mention that the losses can be huge as well.
especially when posting in Beginners and Newbie's section, where written statements "can be" taking literally, as is, without the though of exceptions.

i agree that "free" tools, information, etc. are the best routes to take, but caution newbie's not to enter the game with "flipping" mentality.
as, if you register a domain today and within minutes someone is making an offer, 9 times out of 10, it is an appraisal scam or some other guised solicitation to get in your pocket.

if you read posts of sellers who've raked in the "huge" margins, the majority will say they held their domains for years, "waiting for the right offer".

but like you say, experience is the key, knowing what and when to buy, when and at what price to ask, are all very important to profitability.

Thanks

imo...

 

[Domain Author]

Thanks for your suggestion @Biggie
That's a great addition!!
Of course, there are losses associated with this business too, as from any other business!! But if done properly, they can be minimized!! A very important thing in this business is patience!! You need to have patience!! Many six and seven figure sales have happened after the owner had held the domain for 10-15 long years before they made it to the charts!!

 

[domainoid]

domain author are you kidding me? really lol? on your op:-

#3- how often do you think domainers realize a huge roi? not very often at all unless you started domaining a decade ago lol. a 50% profit is uncommon. if you got rich during an upturn then you could sell a $100 domain for $150 but that's not very realistic to expect imo. what if you need the cash and have to sell during a downturn? all the money you made may get wiped out.

#5- "You may make some instant cash by flipping some good hand-registered brandable names on forums. It will take minutes before someone will make an offer or bid on your listings if the name is really appealing." -do you think any appealing domains are still unregistered lol? backorders on those will always have priority if they're not auctioned off before. flipping a hand registered domain is hard on forums or off forums. some names sit years before an interested party contacts the owner even if it is brandable.


"domain flipping is an art that can only be developed by experience" this i agree on except getting enough experience may take years and serious investment money. many domainers move on after a short time. they enter thinking big profits and don't want to put in the work and hours. some new extensions coming onto the market have also driven some experienced domainers broke.

you're right about patience and many do not have it. and biggie is right -your op should've touched on the subject of losses at least.
looks like you've done very well in domaining yourself. maybe luck maybe hard work or both. and if you have that's great.

 

[Domain Author]

I agree that it may take some time to flip. But the technique I follow is, I usually buy the low cost domains in the range of high $XX to low $XXX or even hand registered domains. As soon as I buy, I put up a list of all the other domains that are related to my domain name. The list turns out to be some 50-100 names. I fetch the WhoIs information and send out carefully written mails one-by-one.
I usually get 2-3 queries for the price. I price them depending on the name and after a little negotiation, it may sell. 3 out of 10 times, the domain sells. When it doesn't, I put the name for sale on auction or make offer, on forums. Some of them sell.
Those which do not sell, I put it under evaluation whether to hold or drop after a year.
But my business model as of now is sustained and I make decent money out of it. Hence the point.
Maybe I am lucky but the hard work goes in finding the right name, compiling the list and negotiating. Maybe, my business model is okay. The advantage of this model is that I save a lot of money in renewals. I don't maintain a portfolio of 1,000 names in my portfolio. Just some 100-200 names at a time. I focus on selling to end-users. When I sell, I put 50% of the profit back as investment. Also, while renewing my portfolio, I consider the offers received, has there been any query for the domain in the past, etc. If yes, I hold it otherwise drop it.

If you sell a $7 name for $100, it is like 14 times profit. Good hand-registered domains can be sold for that price. You need to be creative. Especially when starting out, making small flips is always good.
And yes, I missed the big point of losses. The industry is prone to losses. You need to know the business well before stepping in. Thanks for pointing that out.
Learn daily. Read a lot. Do your research well.

P.S. I am still learning. I give 5-6 hours daily learning about the industry.

 

[taherk]

As long as you are flipping its good. However if you buy 100 domains for $7 and manage to sell only 1 for $100 then its a loss.