Hi, I am Praneeth.
In this blog, you will learn,
Is domain flipping profitable and worth it or not?
Without further ado, let’s get started.
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7 Pros and cons of domain flipping.
Here are 7 pros and cons of the domain flipping business you should know if you are thinking about starting your own business of flipping the domains in 2020 and beyond.
3 Pros.
Here is an overview of the 3 pros of domain flipping.
- You can make money.
- Domain names are very important and there is always a demand for EMD domains.
- You neither need skills nor a big investment to start the business.
Let’s learn each reason/disadvantage in detail.
#You can make money.
This one seems to be a very obvious thing but it isn’t so.
You can make money flipping domains in 2020.
Which means you know domain flipping is still a very good business idea.
Well, there are various other factors involved which you will learn later in this blog,
If you want to just have a glimpse of the power of domain flipping business and if you get things right how much you can earn
Here is a list of 5 domains with their sale price.
- Cars.com-872 million$.
- Car insurance.com-49.7 million$.
- Insurance.com-35.6 million$.
- Voice. com-30 million$.
- 360.com-17 million$.
These are all USD currency, learn more of such domain names here.
With that said, domain flipping is not dead rather you can still make some good money in the business if you get things right.
#Domain names are very important & there is always a demand for EMD domains.
Look.
A domain name is a place where everything starts for a website or a business online.
A domain name gives a unique identity to your website or blog online.
It is the first impression of your online business.
Getting a domain name right is the first major task for many online businesses.
Talking about domain names, You should be looking for something called as,
Exact Match Domain [EMD].
Here is an example of EMD.
For example, you have a website on podcasts and the EMD domain name can be, Podcasting.com.
When you have your target keyword in the first letter of your domain or in your domain name in general, then it is called the Exact Match Domain name.
This is a relevancy factor & gives an edge for websites in ranking in search engines and a part of 200 Google ranking factors.
If your niche targeted keyword is in your domain name, there is nothing better than that.
All the major companies are always in need of these EMD domain names.
Because you know there are over 547200 websites created every single day.
There are many small businesses are moving to online platforms mainly due to covid pandemic and moving online means.
Mainly online business is easy to start.
Having a website and with having a website, they need a domain and they obviously look for domain names relevant to their business.
The demand for good domain names and mainly EMD domain names is never-ending.
By the way,
It is not just about EMD, there are other factors included for a perfect domain to be flipped for high rates.
You will learn them later in this blog.
#You neither need skills nor a big investment to start the business.
The good thing about this business idea is that you neither need a big investment nor any skills or any knowledge to start the business.
Let’s take the example of blogging.
If you want to start blogging you will have to have some knowledge in a particular niche.
You should be able to write blogs, not like a big professional guy but somewhat better.
Or you take dropshipping, where you need some networking skills and some good communication skills.
Whichever business idea you take,
It demands you to have some basic level of skill but with domain flipping.
Nah.
Domain flipping has nothing to do with you having skills like,
- Writing.
- Coding knowledge.
- Networking skills.
- Technical knowledge.
- Big investment for a business, its maintenance, and costs.
All you are doing is buying domain names online, string them online, selling them online.
Every work is happening online in this business.
So, all your typical offline business investment costs are cut.
You can buy a domain name after good research and knowledge or the field and some experience for just 10$ and sell it for 1000$.
That is the power of the domain flipping business.
No other business idea would give you this much ROI,
If you get things right in this business you can have unbelievable ROI.
It is just crazy when you think about the potential of domain flipping.
But,
With everything in life, there are always 2 choices and 2 directions.
There are disadvantages for everything in life and the domain flipping business is no exception.
Here are 4 cons of domain flipping business or disadvantages of this business idea.
4 cons.
Here is a quick overview of the 4 cons of domain flipping.
- You need to invest a lot of time.
- It is an active process.
- There is always a level of risk involved.
- It is always uncertain.
Let’s learn each reason/disadvantage in detail.
#You need to invest a lot of time.
The main disadvantage of this business is it is a very time-consuming process.
You will have to constantly visit the domain registering websites constantly search for those perfect domain names.
If you don’t know what factors are very important in a domain name, here is the list.
- Doman must be relevant to the industry like EMD.
- The domain must be short and easy to read and type in mobile because mobile users are more than desktop.
- The domain must be brandable like hotels.com or cars.com or business.com, etc.
- The domain name must have a TLD extension mainly .com/.net/.org.
- The domain name must be memorable so avoid using numbers and other characters.
This business is a perfect mixture of timing and luck.
The following reason is similar to this one,
#It is an active process.
What I mean by active is that,
You have to constantly search for regular trends in google and search for new opportunities and keep on visiting this domain registration website.
It is a very active game.
Even if you buy a domain name, you might have to keep it for yourself actively for years until you find the perfect opportunity and customer to sell it.
Like I said earlier, the domain flipping business is a perfect mixture of timing and luck.
If by good timing and luck you find an incredible expired domain opportunity or a new domain which matches with the factors I mentioned earlier and has a good future.
If you invest money and get that domain registered.
It is simply a great thing because it is as I said about to keep on hustling and keep on searching for those perfect domain names.
You will feel like there is nothing left, it will be very discouraging in the beginning if you don’t know the rules of the game.
But,
You might end up with totally wrong assumptions with the domain you bought and kept on renewing it hoping at someday you will find the perfect customer.
It is simply crazy and a lot of active processes.
#There is always a level of risk involved.
When you are registering a new domain you will always have to be careful with trademark rules.
If you don’t know what a trademark actually means.
It is a word or a phrase or a design or a symbol which a company registers which helps distinguish goods and products of a company from those of others.
Here is an example,
You can’t use wordpress word in your domain name because wordpress has registered it as their trademark domain name.
That is why you have WPbeginner instead of wordpress beginner which is one of the top wordpress teaching blogs on the internet.
Similarly, whenever you are registering a domain name you should know that you are not violating the trademark rules,
What if you unexpectedly or without knowledge violate trademark rule,
Here are things which will happen to you,
- The legal case against you from the one who registered the trademark.
- Cost you a fine of thousands of dollars or a lot of time.
- Cost time in legal matters and start with a new identity and product.
The reason is you are involving in the marketing and sales of the company which used the trademark with the same name in the industry.
So, whenever you are registering a domain name thinking of flipping it in the future, you should make sure that you are not violating the trademark rules or not using any trademark name in your domain.
Click here to learn how you can check the trademark of any domain name before purchasing the domain name yourself.
Another thing you should understand is that when you are in a domain flipping business,
You will learn something called expired domains.
These are domain names that are already purchased by others who worked on the domain name and left it by not renewing it for some reason.
Many people keep searching and buying expired domain names instead of new domain names for domain flipping because,
- The expired domain already has some age and authority.
- The expired domain already has some backlinks pointing to it.
- The expired domain already has some traffic to it.
But it is not so simple,
When you are buying an expired domain you should be very careful in terms of what domains you register.
Obviously, you should look for copyright trademarks but you should also look for any penalties and bans involved in that domain,
#It is always uncertain.
Even after getting all the things right.
There is room for uncertainty,
You don’t know whether the domain name you bought will be sold for 100$ or 100000$.
It is a matter of patience, luck, and time.
It is always uncertain as to what will happen with your domains.
You don’t know the company’s tastes, likes, interests in the search for domains, so you are largely taking decisions on your assumptions and buying domains on your assumptions.
You don’t know how good your assumptions are going to be.
Hence, you should know that even after getting a lot of things right in this business, there is a large room for uncertainty.
Is domain flipping profitable and worth it?
Look,
The first advantage I mentioned about domain flipping is that you can make money in it for sure.
So there is no doubt that domain flipping is definitely profitable but if you want to make some large amount of money then you should invest some time, learn things, research for trends, and keep on looking for exciting domain names.
If you are dedicated to all the hustles and work then domain flipping is definitely worth it.
If you are that guy who thinks that domain flipping is a simple fast get rich quick scheme like buying a domain like cars.com and earn millions of dollars instantly.
It is not the case so easy not.
There are millions of websites are millions of domains sold so you need to invest time, effort, and money to make some decent amount in this business with good ROI on a consistent basis.
Make sure that you follow the rules of trademark and other rules while registering the domain name to avoid future problems in the business.
Ending remarks.
There you go, I have answered everything you need to know about is domain flipping profitable and worth it or not.
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Read my other blogs,
- New domain vs expired domain: Which one is the best for domain flipping?
- Why start a blog.
- Should you hire an SEO expert?
I will catch you next time till then,
Keep learning and keep growing.