Flipping domain names for a living is one of the coolest jobs on the planet. It provides you with the freedom to work from anywhere in the world, make unlimited income, and is challenging enough that you can never get bored of it!
So why doesn’t everyone learn how to flip domains for a living? Because it’s HARD! I hate to burst my usually cheerful attitude bubble, but domain flipping is not about swinging nunchucks at flying pinatas while hoping to crack “the one” that’s filled with golden confetti and freshly printed hundred dollar bills. Not even close. Domain flipping is a f*#%*g art form, yo! It’s THE GRIND.
There are so many ways to flip your domain names. However, I will be going over what I believe to be the highest converting, and the most profitable approach; flipping domain names to the service industry. Why is this the most profitable approach? Because in a blend of impossibilities, this is actually one of those few ways to sell domain names that works long term. Why? Well, what is the one thing that every service related business ALWAYS needs to thrive?
Leads, bro. LEADS.
Think about lawyers, plumbers, electricians, web designers, writers, SEO’s, so on. They all thrive and exist solely based on the leads they manage to acquire, and close.
I will use web design as an example.
Say, for instance; I run a ten designer company in Boulder, Colorado. My web design firm pulls in about 1,000 leads per month, and we close around 200 of them at an average sale price of $1,000, earning us $200,000 per month in revenue. That equates to me, the business owner, seeing around $2.4M in revenue per year. Tell me, what can your domain name offer me, that would make me want to spend a percentage of my yearly earnings acquiring it?
If you answered “More quality leads” you’d likely have just closed the sale. Why? Because, if you can provide GENUINE traffic, that converts into QUALITY leads, you are giving that business owner a lot of incentive to acquire your domain name. The more QUALIFIED the traffic and leads are, the more the domain name is worth.
That doesn’t mean, however, that there is only one type of domain name you can flip to the service industry. Not by any means. That is just one example. There are at least three:
GEO + Service Domain Name & Lead Generation
If you are not a web designing, search engine optimizing wonder-guru, I would skip reading this one. This is THE hardest way to do it, but, it is also your most likely way to flip the domain name for the most money. This one requires about 6 months of love and attention to the domain name. This is what you will need to do, in it’s most basic form:
Acquire a GEO + Service domain name. Using the web design company example above, you could acquire a domain name with the following traits:
- A high PR. Sure, Google may not use it anymore in terms of ranking, but it will still give you an idea of the quality of content and trust factor that was granted to it by the search engine. That’s a good initial indicator of quality.
- Quality backlinks that are related directly with web design. It doesn’t have to be a ton of links, a few quality ones is all it really takes.
- Aged at least 5-10+ years.
- You should also add maximum registration to the domain name. Search engines like seeing websites on domains with long term registration. Why? Because it “shows them” that this isn’t a pop-up marketing/spam site… it’s here to stay = better rankings. (I can see some bloggers going to their registrars right now…)
Using the same web design example: If the domain name relates to Colorado(where my business is), and/or design, even better, but as long as it has a clean history, and trusted backlink profile, you are good to go. All you have to do now is develop a site on it, make sure the design is 100% focused on ranking and getting the lead, rank it for 5-10 different keywords, and start generating leads on it. After a few months, you can gauge the value based on traffic and leads. From their you can approach a company about acquiring it based on months of data.
Of course, there is more to it than that, but that is the birds eye view of flipping lead generating domains. This approach to domain flipping is one of the most complex, has the most margin for error, and has the highest risk to reward ratio. But when you nail it… my oh my.
Type in Traffic Domains
You don’t necessarily need to turn the domain name into a lead generating site to flip it. You could just acquire a GEO + Service domain name(or any closely related domain name) with type in traffic.
Using the same example: Say you found BoulderColoradoWebDesign.com, and it happened to received 5-10 type ins per month. If the traffic is quality enough, and you only paid $10 or so for the domain, don’t you think you could pick up the phone, turn around and sell it for $50-$100 that same day? What’s 5-10 more highly qualified people visiting your site worth? I mean, if I’m already paying $8 per click or something through other advertising methods, what’s a $50 cost to acquire a domain name that gives me 10 free “clicks” per month? If I close even one of those clicks in the next year, my ROI is through the roof… especially at $1,000 average sale per lead.
If I had a web design agency, and I had any wits about me, I would acquire every qualified domain name I could and forward the traffic to my site. This is a great way to flip domains.
The brand upgrade is the most straight forward, and least time consuming of the “three” ways to flip domain names. It’s simple: if I operate on TheDesignAgency.com, the only “logical” upgrades for me would be either Design.Agency, or DesignAgency.com (unless I’m looking to rebrand completely). Right?
Nobody likes feeling like #2, #3, or even worse. If you can deliver a logical upgrade to their current name at a reasonable cost to their company, and better yet, still provide them with some semblance of data, then you are on your way to flipping that domain name for a nice profit.
This method is straight forward, find the best, shortest, most pertinent domain name you can that would be a great upgrade for a company, and convince them with hard facts, and data that they are saving money(on top of getting their leaked traffic back..) by acquiring the domain. Boom.
Domain flipping is one of the hardest ways to make a living in the domain name industry, however, it is one of the most exciting ways to go about selling domains. If you can find your “space” in the world of flipping, you can make a living from your laptop.