How To Make Money Flipping Domain Names

In 2010 Escom LLC successfully auctioned a domain name for $13 million to Clover Holdings.  This is perhaps the most dramatic example of domain flipping.  Domain flipping involves buying website domains with the aim of selling them at a profit.  Of course, you can’t expect to make millions from each domain name you sell, but you can make a decent amount of money if you know what you are doing.

The profitability of selling a website depends on the site’s successful ranking in search engines.  It follows then that you should buy a domain name that will likely perform exceptionally well in search engine results pages.  A successful domain name should contain strong keywords.

When choosing keywords, avoid those that are highly competitive as well as those which are rarely searched.  Use online resources such as Google Keyword Tool to learn the number of searches a keyword receives as well as how much competition exists among advertisers and site owners.  Your website will get better rankings with the search engines if your keywords are frequently searched but do not have much competition.

While acquiring domain names with the right keywords in them is important, it is not the only criteria when selecting domain names.  Some online marketing experts believe that how long the domain name is and whether or not it is memorable have an impact on how many visits the website receives.  Some believe it is better to select a domain name that is on the shorter side so it can be remembered more easily.  Nevertheless, because the main goal is strong keyword presence in the domain name, don’t fret too much over the length.

You may be able to sell a domain name without adding any improvements, but the real money comes from real work.  Build the site around the keyword, adding high quality content to the site.  Work to optimize each site page in order to enjoy a good ranking in search engines.  Incorporating backlinks is important to improve the site’s position on search engine listings.

By developing other passive income methods, like sellingadvertising space or signing up for Google Adsense, you can make your site even more attractive to would-be customers.  Potential buyers are always on the lookout for passive income-generating sites that require minimal intervention.  If you wish, add an opt-in form to build a subscriber list, which will sell with the site and make it more desirable.

Add Google Analytics to the site early on.  The analytics tool can keep track of your traffic, conversion rates, and profits, which will give your clients absolute proof of the site’s success.  Without this proof, they will have only your word.

When all the work is done and you are ready to put the site up for sale, there are many domain auction sites that will help you get good bids.  Flippa.com is where most people go to get the best price for their domains.  Buyers love using Flippa because of the verification tools that it incorporates into each listing.  They can view details such as the amount of traffic coming to a site, the keywords for which it is optimized, and the amount of income it generates monthly.  The price of a site largely depends on the income the site generates in a month.  You can calculate your estimated sales price by determining how much money the site makes each month and multiplying that number by ten.  If your site earns good profits, then you can command a still higher price than the benchmark figure.  To make the most out of your site’s potential, enhance its presence online through backlinks, a subscriber opt-in form, and search engine optimization.

After the bidding closes and you have a buyer, have the funds transferred through an escrow service to keep both of you safe.  You can give the buyer the website after your escrow service acknowledges payment in full.  This usually ends the transaction.  In some cases, however, you will be asked to provide your expertise to help the new owner in the early stage of managing the acquired domain.  You should always make sure these terms are disclosed before the sale goes through.

If you intend to start flipping domains, you will need patience and good business know-how.  The sites that have existed on the Internet for many years are going to bring in more money than new domains.  There are very few rags to riches stories in domain flipping.  Whether you purchase established sites or build from the ground up, a solid site with a proven track record will draw in the bidders.

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