Domain Name Flipping: Does it work?

I believe it's more profitable to create an actual site with ads from adsense or chitika.

 

Yes it does
There are some people that make a lot of small sales in the $$ region and there are people who tend to make just big sales in the $$$$ region,
Either way flipping with domains is certainly possible

 

What sort of ROI do domainers currently expect on a domain that they have parked.

There is an interesting domain that I lost in an auction a year ago ( went for about 18K ) as I just did not have the cash at that point (I bid to 12K).

Since I know how much it went for, I'm keen to approach the buyer with 18K + 20%. I have intimate knowledge of that sector (which the original buyer may or may not have ...) and developed appropriately the domain can make about 5-8K per month.

 

@Richard that's a great idea

 

dropped domain names can be more valuable due to their having had high-profile websites associated with them. They will have links from other websites and could still have users searching for the websites because of these links. Others can be valuable because of the generic nature of the domain name or the length of the domain name, with two and three character names being the most sought after.

 

This is quite true but difficult to implement. I have a seen a lot of dropped domains but the quality are not that great. It will take you days to find the best one to buy that is related to your niche. Make sure you check the domain's history first, since it might be a site related to porn/illegal drugs/gambling which you don't want if your site is about video games or something