In This Article

  1. What is Domain Flipping? 
  2. Domain Flipping Example 
  3. Domain Flipping in 5 Steps 
  4. Advantages of Domain Flipping 
  5. Domain Flipping FAQs
  6. The Bottom Line: Domain Flipping 

If you’re looking for a new way to make money today, there is a strategy that is easy to get started, requires a small investment, can be active or passive, and can be profitableWe’re talking about domain flipping. 

In today’s digital-friendly world, domain flipping has become a way for entrepreneurs to make a profit. 

In this article, we’ll explain:

  • What is domain flipping?
  • Domain flipping examples
  • Domain flipping in 5 steps
  • Frequently asked questions on the topic

If you’re ready to learn everything you need to know about domain flipping, let’s get started!

FREE Online Class: Get access to one of our best-selling online classes, Flipping Websites for Profit, for free today.

What is Domain Flipping? 

Domain flipping is when you purchase a domain with the intent of selling it for profit. 

Domain flipping consists of buying a domain for as little money as possible, either by buying a new domain outright or from its current owner, then finding a buyer for it.

Like any other business, domain flipping has both advantages and disadvantages. Let’s review a few of them.

Domain Flipping Example 

Now that we’ve discussed the advantages and disadvantages, let’s take a look at a domain flipping example. 

As of mid-March 2022, ten domains have sold for $100,000 or more and the year’s just getting started.

It’s true! Some of the most expensive domains ever sold went for many millions of dollars. Those numbers are the exception to the rule of domain flipping, but it’s still possible to earn a considerable income selling domains. 

Domain flipping is not just for experts like Mark Levine who made $70k profit in 2020 flipping domains. Although Mark’s day job is in publishing, he is a domain flipper on the side. 

With so many domain investors in the business, is it realistic to even try domain flipping? There are plenty of everyday folks earning money selling domains. Let’s look at two of them.

Jody-Ann made $10k domain flipping…

Jody-Ann Rowe is a marketer for event planners who shared on YouTube how she made $10,000 flipping domains. 

She spends a few hours each month researching and purchases between two and four domains. She’ll often hold on to her domains for several months before selling them at a profit. 

Jody-Ann sold several domains to make $10k, one of which she had bought for $11 in 2018 and later sold for $3,000.

Jasmine purchased domains for $100, and now they’re worth more than $15,000…

Another part-time flipper, Jasmine Wilson, owns many domains and keeps them until they increase in value. 

In 2019, she wrote about how 10 of her many domains were purchased for less than $100 total and were then worth more than $15,000. 

Part of her strategy includes evaluating the best time to sell her domains and which ones to keep holding onto.

Domain Flipping in 5 Steps 

Is domain flipping right for you?

Next, we’ll explain how you can flip a domain in 5 simple steps to help you answer this question. 

Step #1: Find a domain to buy

Finding a domain to buy can be the most difficult part when domain flipping. 

Use domain registrars like GoDaddy or Namecheap to search for names and check their availability. 

Consider recently expired domains or ones with some of the newer extensions.

Step #2: Evaluate the domain

Before buying, evaluate the domain for profitability: 

  • Does it contain a keyword or is easily searchable? 
  • Is it short or have one of the more popular extensions? 
  • Is the industry the domain is in often searched? 
  • Is it currently getting traffic? 

Step #3: Register the domain

After finding and evaluating the domain, the next step is to purchase it. 

For domains that currently have no owner, this is as simple as buying it from a domain registrar. 

Step #4: Find a buyer

This step can be tricky. You may want to hold onto the domain to see if it increases in value. Many people who do this will set up a landing page indicating that the domain is for sale. 

Other ways to find a buy is to list the domain on an auction site. 

You’ll be able to sell it more quickly, but may not yield as big a return.

Step #5: Sell the domain

Once you’ve found a buyer, the last step is to sell it to them and transfer ownership. 

If you’re not selling with an auction service who handles the payment process, you’ll want to protect yourself. 

We recommend using an escrow service to help make sure the transaction goes smoothly.

Advantages of Domain Flipping 

If you’re looking for a way to make money from home, domain flipping has several advantages:

  • Easy to get started with a small investment. You can buy a domain for as little as $0.01.
  • Little technical knowledge and no experience needed. To get started flipping domains you’ll need a computer, some spare time, and a credit or debit card to make the purchases. Even better, websites such as GoDaddy or Namecheap walk you through the process of searching for and purchasing the domain you want. 
  • No physical items to store or ship. When domain flipping, you don’t have to think about a product or a supply chain. 
  • Domain flipping can be passive or active.  

Disadvantages of Domain Flipping 

Like any business, domain flipping has its disadvantages:

  • Time consuming. Domain flipping research as well as finding a buyer for the domain can take time. 
  • Comes with risk. In spite of all your research, you may not be able to sell a domain you’ve purchased. Many domain flippers have inventories of hundreds or thousands of unsold domains. Your money can get tied up in purchasing domains before you see a profit.
  • Requires some longer-term patience. Flipping domains is not a get-rich-quick scheme; in most cases, you’re playing the long game, because it may take months (or longer) to find the right buyer for your domain. Flippers can hold onto a domain name for years waiting for the big payout. But at the same time, it only takes one huge sale to make it worth it.

Domain Flipping FAQs

Still have more questions about domain flipping? 

Next, we’ll answer some of the more common questions about the process. 

Q. Is domain flipping profitable? 

Yes, domain flipping can be a very lucrative business provided you learn how to choose the best names and set good prices. You have the potential to make a good income for part-time hours.

Q. Is it legal to sell domain names for a profit? 

Yes, flipping domain names is legal. 

However, be aware of trademarked names. Cybersquatting — purchasing a trademarked name for the purpose of selling it for profit — is illegal. 

Q. What is Domain Drop Catching? 

Domain drop catching is the process of registering a domain as soon as the previous owner has let it expire. This can be an important strategy for your domain flipping business. 

Q. Are there Domain Flipping Courses? 

Yes, there are several online courses available. You can learn more about domain flipping from our course Flipping Websites for Profit: How To Buy, Build, & Invest in Income-Producing Websites.

The Bottom Line: Domain Flipping 

Domain flipping can be an exciting and profitable business — and also as active as you’d like, or as passive. 

But, as explained in this article, it doesn’t come without risk. 

Before purchasing a domain, ensure that you are well versed on the domain flipping process, as well as whether or not the domain will be profitable. 

Understanding these two crucial items will help decide whether or not your domain flipping venture is profitable.