Domain flipping is the practice of buying domains at low prices and selling them for profit—often within weeks or months. Unlike long-term investing, flipping is about quick turnarounds and arbitrage opportunities.
How Domain Flipping Works
1. Find Undervalued Domains
Search expired auctions, closeout sales, and new registrations for domains priced below market value. Look for motivated sellers and overlooked opportunities.
2. Acquire at Low Cost
Buy domains at 20-50% of estimated retail value. Your profit margin is determined at purchase—buy right or don't buy at all.
3. List and Market
List on multiple marketplaces, reach out to potential buyers, and price competitively. Active marketing speeds up flips.
4. Sell for Profit
Close the sale, collect payment via escrow, transfer the domain. Reinvest profits into more flips.
Profitable Flip Examples
Bought: AIWriter.net for $35 (hand-registration)
Sold: $2,400 to AI content company
ROI: 6,757%
Bought: LocalDelivery.com for $890 (GoDaddy auction)
Sold: $8,500 to logistics startup
ROI: 855%
Bought: FinanceHub.io for $200 (investor closeout)
Sold: $1,800 on Dan.com
ROI: 800%
Where to Find Flip Opportunities
| Source | Typical Discount | Best For |
|---|---|---|
| Expired Auctions | 30-70% below retail | Quality domains others missed |
| Closeout Sales | 50-80% below retail | Bulk opportunities |
| NamePros Forums | 40-60% below retail | Investor-to-investor deals |
| Hand Registration | Reg fee only | Trending keywords |
| Direct Outreach | 20-50% below retail | Unmotivated owners |
Flipping Strategies
Quick Flip (Days to Weeks)
- Buy from closeout sales at deep discount
- Immediately list on multiple platforms
- Price aggressively for fast sale
- Target 50-200% ROI
Value-Add Flip (Weeks to Months)
- Buy domains with improvement potential
- Add landing page, verify traffic value
- Build basic SEO or content
- Target 200-500% ROI
Trend Flip (Timing-Based)
- Register domains around emerging trends
- Hold until trend peaks
- Sell to businesses entering the space
- Target 500-5000% ROI (high risk)
Flipping Risks
- Not every domain flips—some become renewal deadweight
- Trends fade faster than expected
- Over-paying at auctions kills margins
- Market saturation in popular niches
Flipping Economics
| Metric | Target | Why |
|---|---|---|
| Minimum ROI | 100%+ | Below this, holding costs eat profits |
| Flip Timeline | Under 6 months | Faster flips = better capital efficiency |
| Success Rate | 30-50% | Not every domain sells; winners cover losers |
| Acquisition Cost | Under 50% retail | Profit is made at purchase |
The 3x Rule
Only buy a domain if you're confident you can sell it for at least 3x your purchase price. This covers marketplace fees, renewal costs if it doesn't sell immediately, and provides meaningful profit.
Building a Flipping System
- Daily sourcing: Check expired lists, forums, closeouts every day
- Quick evaluation: 30-second decision on most domains
- Strict budgets: Never exceed your per-domain max
- Immediate listing: List within 24 hours of acquisition
- Active selling: Don't just list—market your domains
- Ruthless pruning: Drop non-performers at renewal
FAQ
How much capital do I need to start flipping?
Start with $500-$1,000. Focus on hand-registrations and cheap expired domains. Scale up as you learn what sells and build capital through successful flips.
Flipping vs. long-term investing: which is better?
Flipping offers faster returns but requires more active work. Long-term investing is passive but ties up capital. Most successful investors do both.
What's the biggest mistake new flippers make?
Overpaying. Getting caught up in auction fever and paying retail prices leaves no margin. Discipline at acquisition is everything.