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The cost of living is rising by the day. As a result, many people are looking for side hustles to complement what they make in their main hustle.
When looking to venture into a side hustle, most people think of drop shipping, blogging, and freelance writing. The truth is some of these side hustles may be a little complicated and demanding, and you may want something that is easy to start and will not add to the headache of your current job. That’s where domain flipping and speculation come in.
But, What Is Domain Flipping and Speculation
A domain name is the online equivalent of a physical address. It is the combination of letters that users type on their web browser to get to your website.
Much like real estate flipping, domain flipping follows the same concept. However, for domain flipping, you do not have to fix the domain like you would for a home.
You only buy, wait and sell when you feel the domain will attract the best price in the market. Speculation refers to identifying what domains to buy and register with the intent to sell them on an open marketplace.
Where to Buy Domain Names
The first step when venturing into the domain flipping business is buying one from the websites that sell them, such as GoDaddy, Bluehost, Namecheap, and domains.com, among others.
Another option for buying domain names is through domain drop catching or snipping. Domain drop catching or snipping refers to buying domains that recently expired.
A domain owner has a 30-90 day grace period after the lapse of their payment. If they do not renew it, you can recoup it at a fair price from websites such as JustDroped.com, Expired domans.com, or NameJet.com.
Be Wary Of Trademarks
The biggest challenge in domain flipping is getting unique and desirable domain names. According to statistics, there are over 366 million registered domains. Big websites that want to avoid their domain names from being used by others choose to trademark their domain name.
If an entity has trademarked its domain name in a country like Canada, it may challenge other persons that try to use a domain name that closely resembles theirs. So before buying a domain name, conduct a trademark search in Canada on the Canadian Trademarks Database, which you can access online.
Factors That Affect the Profitability of a Domain
- Domain Length: The shorter the domain name, the easier it is to remember. Suppose it follows that shorter domain names are in higher demand than longer ones. It is impossible to register three to four-letter domain names, so if you can get them through drop-catching, you can be sure to attract top dollar.
- Age of Domain: The age of a domain name brings with it authority and can fetch a reasonable price on the market because of the backlinks it may have earned over the years. The other thing you will want to consider is brand ability.
- Letter Structure: Domain names with some random letters may not be the best for flipping. For example, say you have hjkl.com as a domain name. Finding a business looking for such a domain name can be tricky. On the other hand, a domain with brand-friendly letters can be pretty marketable, for example, ppp.com. There is a high chance of getting a brand with such initials, which can be willing to pay the high price.
How Much Can I Make Flipping Domain Names?
The little or much you can make flipping domain names will depend on the effort you put into it. While profitable, domain flipping is not a get-rich-quick scheme.
If you are starting, you may not make much, but some people make a decent living. Currently, the best performers in the trade can make up to six figures.