Super massive world of domains and domain flipping
In 2011, Facebook paid a whopping $8.5 million to acquire the domain name called fb.com. There are even more domain flipping stories on the internet including the most expensive domain name called cars.com was sold for $872 million.
You might be thinking about purchasing a few domains from a domain provider and selling it for millions of dollars. You guessed it right, that’s not how it actually works. Because there are people with the tag “domainers” and they own all the domains.
Domainers are a group of people who make a living selling domain names to brands and people who need it. They have an inventory of thousands of domains that they’ve purchased directly from domain name providers and indirectly from other domain owners as well.
Most of the premium and easily sold domains are usually purchased from the existing owner by other domainers to sell it for a higher price. The domain flipping stories come out of these domainers who sell multiple domains every single day grabbing thousands of dollars in profit.
There are a handful of famous solutions and technologies available in the market right now to track a particular domain, finding and purchasing expired domains and even automatically renewing them every year.
Most of the domains purchased by the domainers are listed for sale online with a landing page that asks for the interested buyer’s details and sometimes sold for a BIN price (buy it now). The domains are sold for a fixed price or put for auction for a particular time period. Some domainers give the domain for rental and even on lease for years.
A domain name is popularly known as internet real estate where you own the land (domain name) and you have the complete control to build your business or website in that domain name while you also got the control to rent it, lease it or even sell it for the market price.
Well, starting with domain name flipping is an easy task, but getting into a profit meter takes time. The concept of domain flipping isn’t rocket science, a massive amount of thinking and probability is being handled by the domainers to make a purchasing or selling decision.
On average, the domainers might be selling less than 10% of their inventory, but they’ve to renew 100% of their domains. Once the 10% is properly sold for a profitable value, the cost of a 100% renewal should be covered in order to run the business.
Decision making is key. There are 100’s of questions to be asked, whether the domain will sell, who could be interested buyer, whether the market is booming and a list of other questions as well.
Some people hire domainers to value their existing domain which is called domain appraisal. There are even brokers to sell your domain for valuable pricing, maybe that’s why this business is called Internet real estate?
How about getting started today?