Domain business is growing. Though most of the short domains are being occupied but still you have a chance to grab a million dollar domain. There is a lot to consider when choosing a domain name for your store, blog, business. Domain names should be fairly short, relevant to what you sell, what you post, what you do easy to remember and easy to say. Customers must be able to easily find your store and pass it along by word of mouth. In addition to coming up with the name itself, you need to think about things like the top-level domain and whether a potential typo will hurt your business. So we’ve put together a list of dos and don’ts to help you commit to the right name.
Step 1: Know Your Budget.
Just like any other business that you would normally startup, you must first know your budget. In order to start a profitable business, take some time out to do financial calculations. It is always best to start off by investing a small amount of money and then move on to making a bigger investment once you are set in the field.
Step 2: Choose a Profitable Niche.
Selecting a profitable niche is very important when it comes to domain flipping. Having adequate knowledge in searching domain names is critical. It will help you with fishing as well as parking domain names. Carving out a niche for yourself will enable you to seek out prospective buyers actively who would be interested in the domain names you are offering.
Step 3: Find Hot Keywords.
Before you park any domain names, you must focus on finding hot keywords that buyers would be interested in. The best way to make sure you get a good return on your investment is to pick a domain name with acceptable traffic, somewhere around 10,000 searches a month. You can do this conveniently by using tools like Google Keyword Planner or Niche Finder Software.
When looking for hot keywords, here is a general guide that might come in handy.
- Generic names are a great find because they can be used to describe new and upcoming products and services, but you must also look into copyright and trademark issues beforehand.
- Business names combined with geographic names like chiropractor Los Angeles can be sold conveniently.
- Timely names pertaining to major events like Wimbledon and the Olympics have great potential to become best sellers.
- Geographic names related to countries and cities can be sold to web developers looking to start new communities, businesses or portals.
Step 4: Focus on Local Domain Names.
It is mind boggling how local search engine optimization has grown from a tiny market to a mammoth industry within a span of ten years or so. This is also one of the reasons why focusing majorly on local names is profitable. From doctors to pizza parlors to salons, everyone wants to see their business thrive on the first page of Google Search results with the help of target keywords.
The best way to pick winning local domain names is to search for them at places like GoDaddy and Namecheap.
Step 5: Find an Existing Domain Name.
Yes, buying existing domain names can be profitable too. Existing domains with a potential for profit can be found using Sedo. Make sure you pick domain names that have good traffic, backlinks and Google PageRank under 17 characters. Also, steer clear of existing domain names containing special characters or numbers because they are not likely to be sold.
Step 6: Find Relevant Domain Names Related to Your Keywords.
Picking domain names by typing in relevant keywords on Namecheap has become increasingly popular. If you want to buy and sell domain names professionally, try using Millionaire Society. Once you have found the domain name of your choice, you can log onto Alexa.com to gain more insight regarding the domain name.
Step 7: Consider Other Alternatives.
Many top-level domains, or TLDs, out there have the potential of being sold at top dollar rates. Gone are the days when domain names with ‘.COM’, ‘.ORG’ and ‘.NET’ were known as top-level domains. Newer domain names with ‘.US’ and ‘.IO’ are also worth their weight in gold. All you have to do is conduct thorough research in order to find all the good domain names you can park.
Step 8: Buy a New Domain.
Even though generic domain names are usually taken, there may be some unregistered domain names. You’re lucky if you can find such a domain name; waste no time and get it registered with the best domain registrar company because that will enable you to sell your domain name to the interested party easily.
GoDaddy and Namecheap are the best sites for finding new domain names that are still unregistered.
Step 9: Buy Domains with Page Rank.
Keyword relevancy is not the only thing that matters when it comes to SEO. However, domain names that were previously used by other businesses usually have a lot of backlinks and a decent ranking on PageRank. Even though such domain names are usually about to expire, they are still worth a lot of money if they have a good number of backlinks and a ranking of five or more.
Step 10: Build a Solid Domain Portfolio.
Building a solid domain portfolio is not a piece of cake; it may take you several months or years to achieve this goal but it will definitely be worth it in the end. When you are in the fishing phase, look at the potential of the domain name. Another common strategy used by seasoned domain flippers is to get hold of some high profile domain names and sit on them until they soar in terms of value.
Step 11: Use Different Sales Strategies.
You can apply many strategies when it comes to flipping domains successfully. The three most common strategies are to set a price for auction and make an offer.
- You can set a particular price for domain names you have to offer when you are not in a rush to sell them. Those who have a huge portfolio usually adopt this strategy.
- GoDaddy and Namecheap follow the auction strategy and you can too. Sell your domain to the buyer with the highest bid.
- When you have a niche domain, you can make offers to various prospective buyers who may be interested in buying.
Another point of concern is to flip websites and not domains only. This is because many times a domain is worth far more with an established website than on its own. Building a website has great potential because it has SEO value, potential and much more to offer to its prospective buyer.
Step 12: Never Sell Right Away.
Domain flipping is not always about making quick cash. Sometimes you have to spend days in research before you make a profitable sale. Remember, it is better to wait for several months or years in order to sell a domain name for a greater profit than settle for normal profit. Think of domain flipping as more of an investment.
Step 13: Be Aware of the Risk Involved.
Flipping domains is not entirely free of risk. There are three types of risks associated with domain flipping in terms of legality, liquidity, and subjectivity.
- Domain names can sometimes cause legal issues. This usually happens because some names are too similar to already trademarked names, which is why you need to think twice before picking domain names.
- From the liquidity point of view, you may have to wait for a couple of months or even years before you can make a profitable sale.
- Subjectivity refers to the fact that it is hard to realize the value of a domain name as compared to stocks. It is not easy to pinpoint the exact value of a domain name.
Now that you know all the details about buying and selling domains, i hope you start off your very own domain flipping business with ease. All you have to remember is to begin by learning all the tricks of the trade and invest a small amount of money before you decide to go pro.
Again, if you have a website already and you break some of these “rules”, don’t worry about it too much. You probably have already been somewhat successful with what you already have, so keep at it and don’t give up.
What Marc Ostrofsky says in an interview with domain sherpa:
Michael: What’s the advice that you have for domainers today that got into it a few years ago that are sitting on 2,000 domains, they’re doing it part-time, they work, they’re hustling during the day working in their day job, they’re hustling at night trying to buy domain names. What’s your advice for them?
Marc: Sell 1,900 of them and manage 100 better names. You’re better off managing 10 or 20 or 30 really valuable names than you are 2,000 semi valuable. Flip those; put your time, effort and money in 10. Let’s assume you had 10 really good names, you’re going to do everything you can to make those names more valuable, one is an asset and one is equity.