Buying and selling domain names (also known as domain flipping) has grown to become a very lucrative industry. Hundreds of domain names are sold every year for millions of dollars. For instance, according to sellmysite.com, stockphoto.com was sold for $250,000, mp3mixx.com for $250,000, furnishedrentals.com for $300,000, prnewsnow.com for $600,000 and bonusbonusbonus.com for $750,000.
However, there are many myths going around about domain flipping industry. Here are some of the most common:
1. There are no Affordable .com Domains Available
Domain names with a .com extension are very popular. As a result, they are usually priced much higher than those with .net, .org or .biz extensions. However, this does not mean that there are no affordable .com domain names in the market. If you look hard enough, you will find several similar domain names at friendly prices. Besides visiting popular marketplaces such as Sedo, Flippa and Website Broker, you could also consider contacting the domain owners directly to negotiate the prices.
2. All Valuable Domain Names are Taken
With millions of domain names already registered, it is easy to assume that there are no good domain names left to buy. However, this is very far from the truth. You can still purchase two or three word domain names which contain your keywords. For instance, bostonhotels.com may have been taken, but you can buy bestbostonhotels.com. Alternatively, you could simply add a hyphen to modify an already existing domain name e.g. boston-hotels.com. In addition, you could buy existing domain names which have expired.
3. Domain Name Squatting is Unethical
Many web developers and companies frown upon the domain flipping industry when they find the domain names they wanted are already taken. The idea of registering and squatting on domain names is seen by many as unethical. However, the domain flipping industry is just like the real estate industry. It is basically about buying a piece of ‘virtual real estate’ and then selling it off later at a profit. Therefore, there is nothing unethical about this business.
4. Domain Flipping is a Passive Business
Many people wrongly assume that domain flipping is just about listing your domain names and waiting for buyers to come. On the contrary, this is an active business that demands for your attention and time. It involves marketing, research, people skills, networking and negotiation skills. You need to learn how to identify the right opportunities at the right time. If you don’t master all these, you are unlikely to succeed.
5. One Can Master The Business in a Short Time
Many self-proclaimed gurus have claimed you can become an expert in domain flipping within a few weeks or months. The reality is that it might take more than one year to understand the basics of the business, leave alone making any profits. Within this period, you are likely to lose prospective deals and buy useless domain names, among other mistakes. Therefore, domain flipping is not a get-rich-quick business. You might have to work hard over a long time before you enjoy the fruits of your labor.
For more information about domain flipping myths, you can visit sellmysite.com. Feel free to share your thoughts and opinions in the comments section below.