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Domain flipping is a lucrative business and has made many millionaires over the years through buying at a low price and then selling on to entrepreneurs and domain investors at a much higher price. Recently many internet marketers have been launching courses on ‘flipping domains’ and some are awesome, while others suck!
Here’s my free guide on how to flip domains and my latest flip too.
Back in July last year I registered an expired domain name that was previously used by a women’s clothing company in the UK. I found the domain using DomCop, a tool I use in my businesses for finding expired domains. It was very catchy and I quickly did some research.
I always use ExpiredDomains.net to find my domains to register. They have lists of every extension and when they expire (usually daily). Some domainers also buy at expiring auctions but you’ll pay $30-$3000 depending on the domain history. You might even have to enter a bidding war for it. The domains I buy are expired, released domains available to register for $10.
The first thing I do is to check if the domain has been used as a spam site or used by another domainer to 301 redirect the domain (PBN) to another domain. I go to web.archive.org and enter the domain, as you can see below in 1999 – 2015 it was another website.
Most domains I find fail at the step above or the next one. I then head over to Majestic.com to checkout the backlink profile to:
- check the anchor text
- check the referring domains
- check referring domains vs backlinks.
If the anchor text has lots of chinese symbols be sure to use Google translate to see if they are spam or not. If they are, run a mile.
If the referring domains are from adult sites, chinese sites or fake clothing stores, another bad sign, pass.
If there are 1,000,000 backlinks from 1 domain then this is a bad sign too.
The domain I registered passed these tests and has a nice TF and CF statistic.
It’s hard to tell you exactly what makes a great domain, but a high TF and CF is a good start. A good variety of referring domains and separate IP’s is better too. Don’t be alarmed if you see many external backlinks vs referring domains (as long as it’s not thousands). On further research some sites have footer backlinks for this domain.
It would appear I had struck a high quality expired domain, so I quickly registered it for $10 using Namecheap and then hosted the site using Bluehost and added a 3000 word article relevant to women’s health on the website (bought via Konker). I was using the domain to point towards a Clickbank affiliate product.
A few weeks ago I had an email from someone who wished to purchase the domain as the company in the UK was disappointed to see I had purchased the .com and was using it too promote ‘health offers’ and was damaging their brand (they owned the .co.uk). I’m unsure if it’s true as they hadn’t used the domain for 3+ months (expiration/redemption period).
After back and forth emails, I finally agreed a sales price of $2,600 US Dollars + Sedo fees (15%). The sale has since been completed and I’ve received my Sedo escrow payment direct to Paypal.
So a $10 investment and 1 hour of my time to register, add content and forget turned into $3,200 over 12 months.
Domain Flipping is a numbers game and domainers whom hold thousands of domains are hoping their sales are higher than their costs.