Is domain flipping profitable in 2021?

A question that comes back every year is, “is domain flipping still profitable in year x?”. In the last couple of years, the answer has not changed much, yes, it is profitable, but no, unfortunately it is not easy money. However, there are still many great opportunities out there, and you can earn some money on the side by flipping domain names. It does take some work and a consistent approach.

Flipping domain names has never been easy.

When the internet was still up-and-coming, it was relatively easy to obtain great domain names.

But these days have long passed. In recent years, it has increasingly become difficult to register great domain names, especially .com domain names. New opportunities have come up with the rise of a whole range of new domain extensions. The arrival of these new extensions has made it possible to register single keyword domain names for a lower price than you would expect with traditional extensions.

The chances of registering a high-worth single keyword .com domain name for a few bucks have long diminished. Obtaining such a domain name today would usually cost you a large sum of money. When it comes to .com domain names, there are still many opportunities for two keyword domain names or brandable domain names. With some creativity, you can still come up with great names that businesses are eager to obtain and lets you earn some money flipping domain names.

Picking a good price range that you want to operate in can really help you turn a profit. Very high-priced domains are a lot tougher to sell then domains in the lower price range. You are much more likely to sell a domain for under $10.000 than something above that. Domain names that are worth $100.000 or more take a lot longer to sell because the pool of clients with such a high budget is rare.

You also must be confident about the names you have picked, sometimes it indeed does take a couple of years of holding on to a domain before it is eventually sold. When you start doubting, you might give up on a good domain name or hold on to a bad one for way longer than you should.

It is also important to follow trends, currently all the rage is about cryptocurrency related domains, nobody is buying domains related to fax machines anymore, so it does not make much sense to hold on to such domains.

Carefully manage your portfolio.

Running a tight ship and managing your portfolio careful is essential if you want to make a profit. Getting rid of domains that are not strong enough is important, renewal cost of domains do add up significantly over time. If you consider that you have a domain portfolio with 100 domains in it depending on the domain extensions, you have chosen you will easily pay $1000 a year in renewal fees.

Using the right tools to manage your domain portfolio can be a great advantage, for example our tool to manage domain portfolio’s NameCRM helps you keep an airtight domain portfolio. With extensive reporting and easy inline editing, it becomes much easier to manage a large portfolio of domains, and you will be able to liquidate domains early on, reducing the cost of your portfolio.

Before giving up on a domain name, it might be a good idea to check if they get accepted in a marketplace for brandable domains. Examples of those are squadhelp and Brandbucket. It might take quite a while before your domain is accepted (especially with brand bucket) but if it is accepted that is a sign that you probably should not give up on your domain name. Obviously, being listed is not a guarantee that your domain name will be sold but a good indicator that it might be valuable, since these marketplaces only accept a small percentage of the domain names submitted to them.

And if that does not work, you can always try to list the domain on name liquidate. This is an auction website frequently used by domainers to get rid of their surplus domains; if you have a reasonable domain name, you might still earn back the renewal fees you have paid so far.

Domain flipping with high quality domain names.

Finding and keeping the best domains is a tough challenge since it is highly subjective, one man’s trash is another man’s treasure. There are quite a few criteria that you can apply to determine if domains are valuable. We have created a handy checklist for you here to verify some basics of a good domain name. Flipping domain names is all about keeping a portfolio of domains with a high chance of being sold.

There quite a few domain valuation tools out there (nameworth, estibot and the GoDaddy domain valuation tool) and they might be a good indication that you are onto something, but you should take the results with a large grain of salt. These are automated valuations, and it is easy for them to be off by quite a bit. You should not valuate a domain solely by a valuation tool.

A more reliable way of figuring out if a domain is worth your time is using Namebio, their database contains historic data for many domain sales. Comparing your domain name to historic domain sales data is a better way to figure out if there is a market for your domain name. Their extensive search tool lets you find similar domain names easily.

There are also a few forums were domainers come together to discuss flipping domains, and usually, they have a section where you can ask other people’s opinion about the value of your domains. It is great to confirm that you are onto something with some more experienced people, but in the end, you should be confident in your domain name and hold on to domains you believe in. The great part about the domain industry is that there are many opinions and niches to operate in which makes it quite diverse; that offers you many opportunities, not everyone is fishing in the same pond.

Know your niche.

Part of building a great portfolio is choosing a specific niche. It is much easier to market your portfolio of domains for a specific niche. For example, if your target SEO agencies, you can register 100 domains in the SEO niche. When an agency is looking to rebrand, they might not like one of the brand names you have available, but you might have a bunch of SEO related domains available that spark their interest.

There is still a large chance that they might buy one of your other domain names. Whereas if your portfolio contains domains for 30 different niches, chances are slim that you have multiple domains to offers to customers in one of the many niches you target. When you dominate your niche, it is also much easier to do marketing for your portfolio. You can be the go-to guy for great domains in your niche.

When you have found a niche, you are comfortable with spent some time researching the sales prices of domain names in that segment; when there are plenty of sales targeting your market segment, it is a lot easier to feel confident that you are going to make some sales.

When picking a specific nice check if there is a marketplace for domains specifically in your niche, that can make finding buyers for your domains a lot easier.

Brandable domain names vs keyword domain names.

Every day many new businesses are being started every day, and they all need a great domain name. Doing some research and coming up with a bunch of great names for businesses if a great opportunity when it comes to flipping domains. You can list your domains on one of the previously mentioned marketplaces if it doesn’t get accepted, but you feel it’s still a great name you can still try to list it at Brandpa (https://www.brandpa.com).

It happens that your domain will not get accepted into the marketplace, it does not necessarily have to mean it is a bad name.

So, what is the difference between brandable domain names and keyword domain names? The goal of keyword-based domains is usually to sell a specific product or service. Whereas brandable domain names usually are just a name for a general type of business. Browsing marketplaces with brandable domain names will give you a good idea of the opportunities.

Conclusion

Flipping domains has never been easy, but when you carefully pick a niche and focus on high quality domain names domain flipping is still a profitable side hustle or even a fulltime career if you have enough capital to purchase a large quantity of domains. Long story short: is domain flipping still profitable? It depends a lot on your portfolio, and obtaining a solid portfolio can be challenging. But there are definitely opportunities!

Check out more of our guides and learn everything there is to know about domain flipping. Looking for a great tool to maximize the value of your portfolio? Have a look at NameCRM.

Michael
06/20/2021

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