Domain Name Flipping: How You Can Ensure Profits

make money domain flipping

In 2010, Clover Holdings, a relatively unknown company, bought a domain name that had been put up for auction by the company Escom LLC for the price of $13 million.  Welcome to the world of domain flippingDomain flipping involves buying website domains with the aim of selling them at a profit.  Although not every domain name can be expected to fetch millions, or even thousands, of dollars, it is possible to secure a fairly sizable profit with the right domain building plan.

When selecting a site to purchase or a domain to build, focus on domain names that are aimed at the keyword for which you will optimize your site.  To select a high-performance keyword, learn as much as you can about the search habits of the relevant audience through online keyword research.

Incorporate keywords that are highly searched, but do not have strong competition.  You will likely need to focus your site on related keywords, rather than the most common and highly searched keywords within a niche.  High-performance keywords will result in better rankings on search engine results pages, which translates to more money for that domain.

There are several different opinions about how long a domain name should be.  Though there is little dispute that shorter domain names are easier to remember, incorporating the keyword in the domain name carries equal if not greater weight.

A second point of contention is the use of hyphens in the domain name.  Many people believe that hyphens cause lower ranking on search engine results pages.  For example, Google is able to see domain names that are hyphenated; however, some believe it gives higher rankings to domain names that are not hyphenated.

Don’t waste your time trying to sell the new domain until you maximize its profit potential.  Fill it with great content, appropriate design, and interesting features.  A high number of visitors translates into better rankings on the search engine results pages.  This, in turn, will make your domain more valuable.

make money domain flippingBesides maintaining a high standard in developing your site’s content, pay attention to the technical aspects.  Optimize your content with keywords to enhance searchability.  Advertising services, such as Google Adsense, are a great way to make your site as profitable as it can be.

Build several backlinks to boost your page rank, but focus only on links from quality sites.  If you link to poor sites, your ranking will not improve much, if at all.  Finally, use Google Analytics to keep track of critical site stats, such as the number of visitors, how much income is generated, and advertising effectiveness.

When it is time to sell your website, your Google Analytics track record will serve as a reliable proof of your site’s standing in terms of traffic and page ranking.  You can list your domain in Flippa.com, and it will verify your Google Analytics information in your listing.  Flippa also has a good reputation of helping flippers secure successful and profitable sales.  Flippa gets a lot more visitors than other domain sales sites, so the bids are often driven higher than they would be elsewhere.

In the ad for your domain, you will want to list the site’s niche, host, how many visitors it gets, how it generates money, what additional services are offered, and the on-site advertisement.  This will help the bidders understand exactly what they will receive as the winning bidder.

To protect yourself from a scam bid, go through a secure site such as Escrow.com when it comes time to accept payment and transfer the site.  It is common for sellers to help the buyers with the initial steps of transferring the site.  In some cases the transfer deal may include payment for continuation of administration, hosting, and content updates, although usually, once the sale is complete, the seller has no more role to play in the development of the site.

The success of flipping domains depends on the effort you devote to building and improving websites before you sell them.  Knowledge of a site’s target market and keywords will help in the development of the best design and content.  The most money you make will come from the best, most profitable site.  It is possible for you to make as much money from the sale of a flipped domain as you would running the website yourself for a year.  That is why domain flipping is appealing.