The digital world is improving and growing every day. According to online business statistics, there are 1.95 billion websites on the internet. If you want to succeed in this digital world, you need to have your own website, and that is why the number of websites keeps growing every day.
However, before you can actually make your own website, you need to purchase a domain. Because domains are a necessary part of any website, a lot of people have gone into the business of domain flipping. This is a practice of purchasing domain names and then reselling them to the end-users.
Since this practice is so popular, there have been some myths about it going around. So, let’s see what is a myth and what is the truth when it comes to domain flipping.
The myths about domain flipping
This business is very popular, so naturally, there are a lot of myths that surround it. If you want to become a domain flipper, you need to know what they are and why they’re not true.
Without further ado, let’s see the most common myths associated with domain flipping.
Myth 1: You can find success quickly and easily.
If you want to get into domain flipping because you think you will be able to get rich overnight, get that idea out of your head. This business requires some investment as well as the right strategies so you are able to make conversions.
A lot of people want to flip domain names because they believe it’s a skill they can master in their spare time and it will take them just a few months. However, you will probably need at least one year to completely understand the basics of this business.
It’s important to find out everything you can about domain names, such as:
- Where you can buy and sell them
- The importance of domain extensions
- Why they’re so important for websites
After all, you can’t sell what you don’t understand.
There is a learning curve to domain flipping and before you master it, you will probably invest in several domain names that don’t have potential, at least initially. Creating a meaningful strategy takes time, and a lot of people don’t make a profit larger than $300.
Even though this doesn’t seem like a lot, bear in mind that you don’t need a lot of investment for this business. All you need is a computer with an internet connection, a valid credit card, and enough free time on your hands. You can purchase one domain name for as little as 7-15 dollars.
Myth 2: You can flip domain names passively.
Even after you learn all the ropes and master the business of domain flipping, you won’t be able to just sit back and do the job passively. This activity requires a lot of your time and attention and it’s more than just buying a few domains and re-selling them on domain selling portals.
The name domain flipping implies that the sale will be done quickly, that is to say, in a flip. A person who lists their domain names and just waits for months or even years for someone to buy them can’t be considered a domain flipper. A flipper is someone who thinks about everything and strategizes.
You need a strategy for every step of your domain flipping journey. Choosing the right domain name extension (the most popular choice is .com with 40.90% of domains that end in it), how many characters your domain name has, and who you want to sell it to are just a few important factors.
The main core of this business is to scout out the perfect opportunities for making a sale and apply the right strategies for both ends of this business. Both buying and selling require a lot of skill from the domain flipper.
Some aspects of actively flipping domain names include:
- Networking and research
- Great people skills
- A basic understanding of marketing
- Good negotiation skills
Myth 3: You can make at least one big sale per month
You’ve probably heard about people who have bought domains for a few hundred dollars and then resold them for a much higher price to earn a profit of over 100%. There are a lot of stories like these that are true, but most of them are about people who have been in the business for a long time.
Sure, it’s possible to make big sales when you’re domain flipping and some people are even willing to spend five or six-figure amounts for the domains they want. But while it’s good to work towards the goal of making at least one big sale every month, it’s sadly not realistic.
Sometimes it can take multiple months to sell even one domain name, especially if you’re just starting out. A large number of domain flippers put in at least 50 hours of work just to make a few hundred dollars. Before you can start making big sales, you need to be prepared to work hard for a small profit.
The truths about domain flipping
Now that you know some common myths about domain flipping and why it’s not such an easy venture, let’s consider the truths about it. These truths can also be considered advantages and motivators for getting into the domain flipping business.
Truth 1: You don’t need any storage space.
When you go into a business where you sell physical goods, you also have to think about a storage space, which can be a big expense for the business owner. However, if you become a domain flipper, you don’t need to worry about any kind of storage space.
When you purchase a domain name, it’s stored on the website where you purchased it and you don’t need to worry about it. You can purchase as many domains as you wish and not worry about where you can store them, as they don’t even need to be kept on cloud storage or hard drive.
Truth 2: There are no additional costs
When you purchase a domain name, the money you put into the purchase is your entire investment. You won’t need to pay any additional fees, unless you create a website with that domain, in which case there might be some website maintenance cost involved.
If the customer who purchased a domain name needs to transfer it from one host to another, that will require some fees. However, the customer will have to pay those fees as you aren’t responsible for any type of payment that goes into transferring domains.
Truth 3: You don’t need any coding skills or previous experience
A lot of people believe that in order to work in a field related to websites, they need to have coding skills. If you want to be a domain flipper, coding skills are completely unnecessary, as is any type of previous experience in this field.
Anyone who is determined enough can become a domain flipper. Even though it does take time before you understand everything about how to do the job right, anyone can decide to get into this business.
If you want to become a domain flipper, know that it’s a great way to make some extra money if you’re prepared to put in the necessary work. Now that you know all the myths that surround domain flipping as well as all the facts, you will be able to make a profit much more efficiently without making mistakes.
As long as you know how to choose a good domain name, you will also know how to sell it.
One of the most important elements of getting started with domain investing is actually investing your time to learn and research the ins and outs of all things domains. Understanding the misconceptions (as covered in this article), knowing what makes certain domains valuable, what online resources to tap into, and being aware of the various investing strategies that can be applied will all help you see succeed in making smart domain flipping decisions. You can get started by utilizing a domain investing guide to get a better understanding of what you should know before jumping in.