Buy Low and Sell High with These High-yielding Domain Tactics


Buying low and selling high is the aim of every investor, but it can be a tricky business with domain names. Otherwise known as “domain flipping,” this effort takes a lot of savvy and research – and experts say there are no guarantees. But if you are ready and able to jump into domain investments, it’s best to look around for domain name deals and spend considerable time reviewing domain sale prices.

Enter with caution

Experts point out that buying and selling domain names involves a lot of research and knowledge up front. One business writer, Spencer Haws, maintains that flipping domain names are a lot like flipping real estate. He notes that there are end users, brokers, consultants and domain flippers, who are similar to those who buy a house, renovate it, and then sell it for a higher price. So, when you buy a domain name for the purpose of making money off of it, you’re betting that it’s worth more than you paid for it. If you’re right, you have become a domain investor who has just made a profit!

Experts caution, however, that before you jump into the flipping business by becoming a domain investor, it’s critical that you know the possible risks. They advise buying cheap domain names, which you can find through a domain broker, names that have good resale potential, and that you start modestly and slowly while you gain the necessary experience.

Know the value of domain names

Also, successful domain flippers say, you must become expert at determining whether a domain name’s price is overvalued or undervalued. Digital guru Neil Patel says, “The most important thing to remember when buying sites is that you always make money on the buy, never the sell.” In order to successfully do this, says Spencer Haws, you must be able to spot undervalued domains. This is what will ultimately translate for you into a handsome profit margin when you get the opportunity to resell the domain for its “real value.”

Find good domain names

Experts advise looking for shorter names (typically they are more valuable), memorable names or names that fit a particular brand, names that carry a good history (SEO metrics, for instance), and a popular extension.

Research, research, research

The best advice, always, is to do your research before you begin your search, and especially before you begin negotiations for domain names. Explore current market trends to help determine the best options (start with Google Trends). Keep your budget front and center and search for domain names that are in the price range that works with your budget. Maintain a list of alternatives in case the “perfect” domain names you are seeking are not available or are definitely out of your price range. You can also search for expired domain names, but be sure to carefully review them and their history before handing over your money.

Take your time, know your budget and do your homework to make the most of buying low, selling high.

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