Domain flipping can be one of the most profitable ways to gain revenue in a short period of time if one has the knowhow and patience to go through with their investment. By purchasing one domain, one has the opportunity to turn over a massive profit if they choose to resell to a buyer willing to play an inflated price. In America, a country that seems to be wracked with a different financial crisis for every color of the leaves, domain flipping is a flexible and powerful enough tool to make even somebody without the benefit of full employment able to bring a level of income that is unheard of for the ordinary civilian. As the world becomes more connected to the Internet on a consistent basis, the use of domain names is nowhere close to slowing down; by taking advantage of the opportunities in domain flipping, one can have a great opportunity to defend themselves against future recessions as well as provide a stable livelihood for their future families. One needs to first acquaint themselves with the relevant information needed to fully understand how the market for domain names operates.
Buying Interesting Names
The domain name industry, while undoubtedly attractive, is also fiercely competitive. The market is most profitable when one has a good amount of short, general domain names that can be applied to the broadest range of purposes. The domain names that are followed with a .com suffix are known as ‘premium’ domain names, and these are the ones that are generally known to pull in the highest levels of profit. Domain name suffixes such as .edu and info can assuredly still sell for a decent price, but when dealing with these domain names, one may have to be slightly more creative and persistent in finding out where exactly to market them. Words that are not only short but also describe particularly profitable web industries, such as ‘search’ or ‘auction’, are among the most valuable domain names in the market.
In finding any potential buyers, one must also take care to ensure that they have taken the necessary steps to protect themselves from potential complications that can result from the nature of their business; in particular, one of the primary things to be concerned with is making sure that the transaction is protected by an escrow service. Many domain auction websites, such as Sedo.com or GoDaddy.com, offer an independently hosted escrow service that provides users with the ability to have their funds protected until both parties on either side of the transaction can confirm that they are satisfied. A buyer is able to protect himself or herself from purchasing something that does not match up to the standard that they were led to believe, and the seller is protected from potentially receiving funds from an illegitimate or unreliable source.
Once one has found a reliable escrow service and identified the profitable margin of the domain name they wish to flip over for a profit, it is important to find the most reliable way to market the domain name that they have chosen. An auction website is a popular and proven way to profit from domain flipping, but there is also the option of independently contacting domain buyers and engaging in a private sale via email or social networking website (Facebook, LinkedIn, Twitter, etc). When one flips over a domain name privately, they may not have the same amount of exposure were they to put it up for auction, but a better connection is built with the potential buyer. With a more direct, intimate level of interaction with the customer, there is greater potential for settling on a price for the domain name that is higher than if it were impersonal. Selling a domain name privately would require a slight bit more patience than putting it up for auction and immediately seeing requests pop up in response, but if one is persistent enough, they may see themselves with a much higher degree of profit in the long run; however, one must match their persistence with the appropriate level of understand of the risks.
Email solicitation is one of the primary ways to reach out to people to sell an online ware, but there are several precautions that one must be wary of heeding in order to ensure that they don’t wind up getting on the short end of their own stick. For one, a person must ensure that they are not violating one of the guidelines set by the FTC (Federal Trade Commission). The FTC has established guidelines to ensure that solicitors are held up to the highest standards of fairness and legitimacy to protect the users of any email provider from malicious spam or fraudulent offers. If choosing to solicit one’s domain through email, one must heed the FTC’s seven rules of email solicitation:
1. Never attempt to hide your identity through the headings. The content of the “from” and “reply to” fields must accurately identify exactly who you are and provide the recipient with all of the information they need to reply to you.
2. The email must conspicuously reveal that it is of a solicitation-based nature. No elusive or passive wording can be used to cloak the nature of the email from the recipient; they must be fully aware that the email is an advertisement
3. Provide your location through solicitation emails at all times. Location verification can be satisfied with a full address that can receive mail.
4. The subject line must not be worded in such a way that gives adequate understanding of the content. No misleading subjects can be used to make a potential buyer more likely to click on the email, even if they do express interest after reading through it.
5. The recipient must be allowed the option to opt out of receiving any additional emails, and this information must be provided in easily understandable instructions.
6. Opt-out requests must be satisfied in a timely manner, in no less than ten business days at the maximum.
7. If you are using other people to send the emails, then you must claim responsibility for their heeding of the FTC email solicitation laws and take responsibility if they are broken. Every email that violates one of these solicitation guidelines can carry a fine of $16,000.