Course / Lesson 1 of 8 ยท 3 min read
What domain flipping really is
Domain flipping means you buy a domain name for less than someone will later pay for it. You hold it, you pay to renew it every year, and you wait for the right buyer.
How the money works
A domain investor makes money in one way: a business or person wants a name you own, and they pay you more than it cost you to buy and keep it. Most of the profit comes from a few big sales, not from many small ones.
The costs are simple. You pay to buy the name. Then you pay a renewal fee every year you hold it. When it sells, the marketplace takes a cut.
The honest odds
Most domains never sell. A common rule of thumb among domain investors is that a portfolio sells about 1% to 2% of its names in a year. Treat that as a rough guide, not a promise.
So if you own 100 names, you might sell one or two this year. That one sale has to pay for the renewals on all 100 names. Lesson 8 shows the math in full.
What it is not
- It is not fast money. Good names can wait years for the right buyer.
- It is not trademark squatting. Buying a name that copies a brand can cost you the name and a legal fee. Lesson 4 covers this.
- It is not about the number of names. Ten strong names beat 500 weak ones, because every weak name is a yearly bill.
Who does well
People who do well are patient. They buy fewer names, check real sales data before they buy, and drop names that are not working. They treat each name like stock in a shop: it has a cost to hold, so it must earn its place.