Question about domain flipping

by asc
10 replies

Firstly, I looked for a sub-forum but didn't see one, so apologies if in wrong place.

I have just been playing with godaddy's valuation tool and found around 5 domains that they value in excess of $400, but are selling them for standard price (around $10).

I get that the valuation would never guarantee the price, but would it be worth taking a punt? And if so, how long would you hold onto them or would you just throw them right at the marketplace? I am not looking to create a website although it would add value yes, just wondering if there are some potential quick wins here.

Anyone have any experience in this, or offer thoughts?

Thankyou in advance
#domain #flipping #question
Avatar of Unregistered
  • Profile picture of the author asc
    Thanks for your reply.

    This is something I have never tried, sorry if came across deceptive!

    I simply saw something valued at quite high and selling for quite low and thought there might be an opportunity here.
    {{ DiscussionBoard.errors[11315950].message }}
    • Profile picture of the author asc
      Brent, sorry I misread your message...apologies!
      {{ DiscussionBoard.errors[11316086].message }}
  • Profile picture of the author asc
    But isn't that what domain flipping is? Finding a bargain/low price domain and selling higher?
    {{ DiscussionBoard.errors[11315951].message }}
    • Profile picture of the author Tom Addams
      Originally Posted by asc View Post

      But isn't that what domain flipping is? Finding a bargain/low price domain and selling higher?
      You weren't being deceptive, asc. I think Brent was on about Godaddy.

      Question is, should you snap up the domains?

      Probably not, no.

      Automatic valuations are a poor substitute for human valuations. If you're new to domain valuations, any automated valuations will seem great but they could be worth zilch. They probably ARE worth zilch.

      But that doesn't mean you can't get into domain flipping. I'd just recommend you learn the ropes first before you dive in and start buying up domains. You'll find plenty of local educational resources and I can recommend some other places.

      1. The War Room (on WF).
      2. Throw in some searches on WF.

      YouTube is also a pretty handy resource. The benefit of 3 and 4 above is you'll get a feel for value. Pour over the marketplaces, learn valuation metrics, and you'll soon become a better judge of a domain's value.

      A lot of us here flip domains and/ or websites. Is it a good business? It is, yes, but only on a large scale, where you're making big trades. You can make money on low-level trades but (IMO) it's a lot of work for what you get out of it.

      It's also hard to turn this into a passive operation. The only way I've semi-managed it is to farm out parts of it to a PA. Otherwise, it's quite a hands on operation.

      If you do end up getting into DF, I'd consider local trades with small business. It's an established route and, depending on where you live, you may find it isn't saturated. I've done quite well with small UK businesses looking for keyword domains that they can use for Google PPC. Businesses like taxi services and fast food are big spenders online but they focus (in the UK at least) more on media buys. Which is good news if you're flipping domains they can use for PPC.



      I Coach: Learn More | My Latest WF Thread: Dead Domains/ Passive Traffic
      Learn one way I earn money: I give away free stuff.

      {{ DiscussionBoard.errors[11315977].message }}
      • Profile picture of the author asc
        Thanks for the in-depth reply!

        I purchased your month one a few days ago, by the way. Still working my way through it all, on about p.300 but still not set on a niche. Great info though so far, thanks
        {{ DiscussionBoard.errors[11316079].message }}
        • Profile picture of the author Tom Addams
          Originally Posted by asc View Post

          Thanks for the in-depth reply!

          I purchased your month one a few days ago, by the way. Still working my way through it all, on about p.300 but still not set on a niche. Great info though so far, thanks
          I thought I recognised the face - you're the chap who gave Colin a swift kick for polishing off the Masala.

          Kick him harder next time. He loves it really. (Glad you like MO!)

          Steve gave a cracking answer. I'll just add a few things.

          I had a web development agency a few years back. We worked with small to medium-sized offline businesses.

          The projects ranged from marketing (local SEO, video production, and so forth) to web design, bespoke coding, and VR.

          The whole ball of wax, in other words.

          Most enterprises ignore the little business and chase the larger contracts. Well, that's leaving money on the table, so I went after the full range.

          What you'll find with small businesses (offline) is they have cash to throw about and they're very liberal with it, but they need to see something tangible.

          You can talk viral marketing, content marketing, and other such things with them until you're blue in the face. It won't work. (Usually.)

          I found a good niche in supplying this type of package to them:

          1. Keyword Domain (Premium, Where Possible).
          2. Hosting.
          3. Wordpress Installation & Optimization.
          4. WP Plugin Installation.
          5. Theme and Theme Installation.
          6. Basic Web Design.

          We would back that up by showing them a client portfolio of local businesses. (Which is why I say it's good to run with the local route for this model. It helps convert, plus if you're a local they feel more comfortable dealing with you.)

          Once they saw the portfolio and had a chat with one of us, it was pretty easy to convert a sale. They just had to see something tangible and understand what they were getting. To seal the deal, we'd then explain how the property could be used.

          - PPC
          - PPV
          - Content Marketing
          - Email Marketing
          - Social Media Marketing
          - ETC

          So you'd have the tangible package (just like a brick and mortar business) and (blammo) you'd have a REASON to own that property. We'd convert extremely well. We got them in the door with the above and kept them on as clients (not all; some of them).

          The best way to go about the above is with your own hosting, decent designers, etc, etc, all of which is pretty useless if you're still fairly new to IM, so let me break down a much more doable method for you (or anyone).

          1. You get decent reseller hosting.
          2. You use
          3. You use free stock images.
          4. You understand WP.
          5. You understand Photoshop.

          Those are the basics. Reseller hosting is good because you get the clients paying you for hosting each month. However, you can take that out of the equation, too. You can refer the client to hosting through your affiliate links. Doing so, you can earn commissions between around $50 and $200, but the norm for low-level sales is probably around the $50 to $100 mark.

          So. Simple approach.

          1. You put together a development website.
          2. You subscribe to Elegant Themes.
          (The copyright allows you to use those in design projects.)
          3. You join a hosting prog or get a reseller account.
          4. You contact 3 local charities who don't have a website.
          5. You offer them a free web design to build your portfolio.
          6. (Local charities and churches.)
          7. Now you have a portfolio and a snazzy website.
          8. You put together a services page.
          9. You can offer all kinds of services.
          10. You can also have a section for domains.
          11. When clients buy a domain?
          12. They also get the package I mention above.
          11. First month free for hosting if you have the reseller.
          12. The rest is free regardless.

          As I'm writing this, I'm finding there's probably too much, but I'll do my best to cover the broad strokes and you can fill in the blanks.

          The trick to finding clients? (I could write another book.) One easy route is Facebook. You visit local businesses (their FB pages) and look for ones without a website. The fact that they're on FB and promoting their business signals they're strong leads for a website.

          Another trick is PPC. Whack in local searches into Google and contact each business. Send a unique email each time. Explain to them the advantages of having a keyword domain for PPC, especially the premium one for their business (which you own). And let them know the full package. Explain that you know they get tons of emails. You're a local lad, just up the road, and trying to grow your business. Give them your telephone number.

          So, money? Well, far too much work for a lazy git like me, but I can break it down.

          Costs (after ongoing costs like ET, hosting, etc). Unit costs per client:

          1. Domain (A few quid/ $10)

          That's it.


          1. Price of Domain.
          2. Hosting (reseller or affiliate commission).
          3. Extra services.
          4. Future work.
          5. Referrals (local businesses all talk).

          If you were to do this? I'd suggest you do it as a side business. Consider it more a hobby that you're growing in the background. I'd need to fill in far too many blanks for me to be comfortable with you rushing off and doing it. The trick (if you do it) is to keep your costs way way way down and setup a simple operation.

          That way? You'll be filling in the blanks with experience.

          It's a decent business. It didn't make me a fortune but I got rid of it before properly outsourcing everything. I'm a hard worker but I can make more money setting up passive businesses. This model is good; you'll just always struggle to make it passive, even with outsourcing.

          But the upside (money) is good. It can be good from the start, too. You pay 10 quid for a domain, flip it for a couple of hundred, whack on $100 for hosting (or whatever deal you secure from the host) and you're already around £250 in profit. Whack onto that extra services and ongoing services.

          It's not bad. What you want to do is get people in the door with that offer. The real money is subscription services for marketing. So you'd start out with the above setup. Then you'd either get staff (better) or VAs (still good if you can trust them). You use them to run marketing - especially social media management (you can get paid by the hour).

          Sorry. Being called for dinner (and I value my balls too much not to go running).

          Anyway! Some stuff to think about!



          I Coach: Learn More | My Latest WF Thread: Dead Domains/ Passive Traffic
          Learn one way I earn money: I give away free stuff.

          {{ DiscussionBoard.errors[11316099].message }}
  • Profile picture of the author JChilds

    I fell for the same valuation on GD for a domain, they showed the value as $1,300.00 so I bought it. Then I checked the domain thru others and they showed $10.00.
    GD showed some similar domains but then they do not say if they had income or not to the web site.
    I do not understand how GD arrives at their value but I for one have lost confidence in it.
    Good luck with your flipping, I have not tried it as of yet but have been thinking about getting my feet wet.
    {{ DiscussionBoard.errors[11316016].message }}
  • Profile picture of the author Steve B
    Much like the oft-quoted phrase "beauty is in the eye of the beholder," value of any particular domain name is a very subjective thing.

    "Your mission Jim, should you decide to accept it, is . . ."

    . . . find prospects in a buying mood that see great value and potential in the name you own (have registered). That's a tall order today because most of the low hanging fruit has already been picked.

    One thing you can do is add value (as you have already mentioned) to your offer by including already DFY elements to the domain so that the value of the overall offer you're making is easily apparent. Yes, this goes beyond simply flipping a domain. But IMO, it's a faster earning and more profitable strategy than offering a naked domain - potential buyers can more easily grasp the value in the whole deal.

    Start with a keyword prominent domain, add a premier WP theme, add a logo, add some targeted posts, add several products (PLR) and get everything set up for a new owner to hit the ground running with his/her new site. You can creatively make this site unique so that it doesn't appear as a "cookie-cutter" web site. All this can easily be done in a matter of a few hours. If you don't know how, hire a good freelancer to do it for you.

    Now you have a targeted product to sell with value already established in the domain name, logo, set-up work, posts, and products for sale. People look for DFY solutions they don't have to implement themselves. You have also established a target audience because you have defined the niche. And you now have places where you can offer your site to prospects looking for a fast DFY entrance into online money-making.

    Anyone can do this or hire it out quite easily. Prospects don't have to guess or brain storm about how they might use the domain you're selling. Value in the package deal is much easier to perceive than from a naked domain.

    Good luck to you,


    Steve Browne, online business strategies, tips, guidance, and resources

    {{ DiscussionBoard.errors[11316026].message }}
    • Profile picture of the author asc
      Thanks for the input Steve.

      Yes I did consider a quick wp install and some plr around it to make it look good. But where would you recommend advertising something like that, because in real terms I dont think it would have much value, no traffic/visitors, no proof that it makes any money. Plus, you can pick up sites like this on ebay for pennies.

      NOT in any way berating your advice, really interested to see how you might suggest marketing such a website as you are right, the actual process and setup I think I could do in a few hours easily...but then what...
      {{ DiscussionBoard.errors[11316084].message }}
      • Profile picture of the author Steve B
        Originally Posted by asc View Post

        you can pick up sites like this on ebay for pennies.

        You are right - I call them "cookie cutter" sites where virtually the very same site gets sold over and over again. I'm suggesting you be a little creative and make the site truly unique - one of a kind. It's really not difficult to do.

        Of course, the very best thing you can do to add value, as you say, is to get some traffic and income to the site. I've seen sellers that do just that. It becomes web site flipping instead of just domain flipping. These guys might have a stable of sites and work them for a 6 months to a year in order to prove they can make some money. Beware though, they often keep the best sites for themselves and only sell the ones that are lagging in interest and sales.

        There are many web site marketplaces online that can be found through Google. In addition, some business owners already in the niche may want to expand their real estate holdings. Google the top keyword phrases that apply to you new domain and see if those in the niche might have an interest in what you are offering. These people are prospects targeted to your niche. The key, again, is to find people that recognize the value in the offer you're making.

        Good luck,


        Steve Browne, online business strategies, tips, guidance, and resources

        {{ DiscussionBoard.errors[11316103].message }}
Avatar of Unregistered

Trending Topics