Hi folks, There's this post about domain name flipping. To cut a long message short - a teen has made a fortune flipping domain names. I just think about the example mentioned in the article. qsd.com - allegedly he bought this for $620 and sold for $12,000. Do you believe that? Either the previous owner of that domain name was a **** or the flipper was very lucky. Let's have a discussion about domain flipping. How do you reckon, is it a genuine business or an exaggeration? Have you tried it and if "yes", what's been your biggest margin?
I love this topic, so glad you brought it up. While I haven't done d.n. flipping myself, I know a few friends a few years back sold their .com domain, which they purchased for about $20, for $1500(I can go get an official account if anyone really wants). ...and for an opinion (not to change the direction of the conversation) I do not see this domain name flipping business staying for much longer... maybe a few more years. Am I wrong? Cause if so... wouldn't have others caught onto this trend and jumped on the bandwagon, thus creating lower purchasing prices for the domain names? Maybe I'm thinking to hard
I guess you are right. At least for one reason - people are aware of domain name prices so it is very hard to haggle the price down to see a good profit. Why would anyone sell you a $1,000-worth domain name for $500? However, if we compare internet business with the real life (I know we must not and cannot). For example antiques business. I can still go to certain places and obtain my beloved Art Deco pieces at ridiculous prices and then go somewhere else and sell them at a proper price. It's just that on the internet the news travel at such a speed. If I buy a bargain domain, everybody will learn about it the very next day!
If you have quality domains, they pretty much sell themselves. I've had to block a couple e-mails addresses because I would not want to sell and the potential buyers would not pay up. Domain flipping is profitable if you don't chase after domains like dfgkjklfsdjfsdkjfa.bdfk and instead get GOOD QUALITY domains that there can be potential buyers for. The only thing is only a small percentage of people actually hold good enough domains... anything fresh reg'd these days isn't really going to make you decent money unless you go out and find your buyers and/or you get really lucky. Domain flipping will never end. People will always think they can do something better than others and are willing to pay the price... assuming it's worth it.
@ Tankard: Good analogy on the antiques... that is a true point @Fka: Agree with you on the good quality vs. abc.com domains So as honest as possible, is this something that one could be successful if they started right now? Today? *Obviously the experience and knowledge would make or break* ...I have actually sold my old domain for $20, and as I mentioned earlier I know others who have made good profit. So, I'll take some inspiration and see what I can make for myself.
Absolutely yes... if you pick a niche. There's something out there that has opened opportunities to people and domains like no tomorrow and people that have taken advantage of it are reaping the rewards right now. There's still a chance, but you really need to sit and do research to get anywhere. Wish I could spill the beans and talk about it, but people on this forum don't care much for 'hard work'. Will probably be blogging about it this week.
Why don't you go ask "Domain King" the biggest domainer on the web that question. He'll answer Or you can just read his site erealestate.com. He owns ass.com He buys amazing domain names only to park them.
A small number of people, Kevin Ham springs to mind, seem to be making a lot of money from domains. As to whether you can too ... it's possible with luck ... but I think it's a pretty competitive marketplace now. The risk is that you tie up cash buying domains which you may not be able to sell for a long time, so it's a bit of a gamble. I mean how many people "just have to own" qnpg.com, which might set you back several hundred dollars? Not so many is my guess. [I just checked qnpg.com after posting this, and it is for sale! (not by me), it'd be interesting to know how much the owner hopes to get for it.]
I would like to assume that it is possible if you try to work according to common sense but do something different than others do... I like your blog. Signed up for your RSS. Can't wait to see the post! If he would be spillin' his knowledge all around the place, he would eventually find himself out of the boat. I honestly don't believe that Big Gurus really share their experience. I am not saying one should avoid investing in 4 letter domains but I am afraid it's not a long term investment because there should come a time when it will be totally impossible to sell a senseless (qnpg is senseless) domain name. All markets eventually come to sense. Another analogy (jeffbeer, I hope you don't mind) - property market in the UK. The prices were too high in comparison with any other European country. What happened was that they had to fall. For one reason or for another, but there was no other way. I can only speculate about how much time the LLLL.coms have before they fall. One year? Two years? In the end it is the factor of how much business can you generate with a domain name that sets its price. And you cannot generate too much with qnpg.com But before they fall, if you can flip some of these, you will make some money!!!
Really good threads…haven’t seen such a good thread on dp for some time. Just wanted to comment on this and say that a domain like qnpg.com is only selling at about $20-35 at todays prices anyway...so the price really is not that inflated. If ´those domains were selling at $200 today then I would say there is a small problem. I think its all about predicting trends and demand and supply, now common sense does a good job at answering some questions at times. If all 4Letter .com domains are taken it means that the people who want a short domain will have to pay more to get it, this automatically raises the prices of bad 4Letter.com´s up to a certain extend of course. Just look at the 3L.com market, because some other high quality 3L.com´s have sold for so much like $xxx xxx it has brought up the value of crap 3L.com such as qxv.com to a base price. The same should happen with 4L.coms however it will take some time. With time small inexperienced investors will be out of the game and most 4L.coms will be owned by more experienced investors who will sell less but at higher prices which again will lead to a price rise. Also what a lot of people forget is that most of the population don’t even know about domaining now imagine what will happen when the number of investors doubles or even triples.
it wont allow me to put in forbes article. but you shouldd be able to figure this out forbes dotcom/2008/08/10/domains-flip-aftermarket-tech-ebiz-cz_cf_0811domains_print.html is the url i wanted to show you
http://www.domainstate.com/showthread.php3?s=&threadid=93328 there are some doubts on this guys' claims here and he is posting there himself as well (karter). some people naturally have a marketing ability, very few really have it. The one person who stands out in this business for flipping to me is Rick Latona. Also Rick Schwartz can get more money for a domain than anyone else in this business as far as I've seen. (750k iReport.com, suspected 10mil+ property.com which he paid 750k) But honestly, only a few people can really do it and succeed at that level.
Wow, this thread exploded since I last read haha There's too much to respond to but Maybe I'll bring it all back together right here: Thanks for all the links... they will all be very helpful. Also, Fka I look forward to reading your blog So, let's say I start today, I have pretty good marketing experience and a good general knowledge for domain names, trends, etc. I also ahve the motivation, and funding to start out small. Therefore, I believe that as long as I make some profit out of this, that i could end up making some decent money (like $1000/week or two) I guess my point is that I don't need to make $750K on domains(though who wouldn't), rather if I could make $20-200/dn sold I wuold be more than happy. Hope this group on this thread can stick together... it's refreshing to talk on a forum like this
Today is my first "official" day of domain flipping. I am willing to do the hard work. I would like to know what "niche" might be popular currently. I am eager to work. Respectfully, Chad
hehe, if it was as easy as that everyone would be doing it....keep reading, forums, blogs etc start with little and with time u will learn.
I like your way of thinking. It is inevitable that the number of investors would soar: In USA alone in the year of 2000 there were 120 million internet users or 45% of population whereas in 2008 it is estimated to reach 220 million users or 72% of the whole US population And then there is Asia! Only 17% of Chinese people use the internet. When they reach the level of USA (and they will!) there will be 950 million internet users in China alone. Imagine how many of them will want to become investors/SEOs/gurus!!! This is a good lesson we can get from this kid (am I really saying this?) that good communication skills are crucial to succeed! I mean, the way he acquired the domain name. Hats off! I remember one domain guru (can't remember who) saying that in order to be successful one needs to set his budget and stick to it. Unfortunately, many wannabe domainers spill out more cash than they can afford ending up in bankruptcy. I think if you act wisely and predict what is going to be popular, you can have success. Yeah, it almost seems like a domain round table here And I would also add - keep reading news - just any news really. I heard Prince Charles talking about genetically modified food yesterday. Just out of the interest I went to Godaddy to see if GMFOOD.COM was gone. Well of course it was. Someone else had been a better news-reader before me and spotted the term long before it came into a widespread use...
Well...then there is Africa and much more..I think we as domain investors are still considered early birds in the game even though some have made millions many more will make millions in the years to come. If anyone thinks that millions will come overnight...then you might as well quit while u are ahead. Plant ur seeds now because trees take time to grow. I would aslo keep a close eye on the Indian internet market! (I think thats where the real boom is, china may burst but not India)
@hecto and tankard: awesome points guys! I myself understand the value of reading and researching...I'm 21 and have been reading newspapers and other resources since I could read, and it's amazing how power trends and movements are in this world... knowledge IS the deadliest weapon out there. @clipovich: Take this advice from me: Force yourself to think as far from the norm as possible, be creative and innovative. Success is only easy for those that can work hard with a great idea. tankard... round table discussions are awesome, esp. with a good group.