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Flipping Domains

In general, and subject to some rules, domain names are registered on a first-come-first-served basis. That is to say, the first person to register any particular name (which in the case of com, net, and org domain names costs just a few dollars per year) continues to control that domain name until he either transfers it to somebody else, or stops paying the annual renewal fees. This means that a person can profit by being the first to identify and register an available but potentially valuable domain – and then reselling (flipping) the name to somebody else who wishes to use that name. In some cases, domain names that have been registered for a just a few dollars, have been sold for many thousands of dollars, and in rare cases, hundreds of thousands or more.

There are some important things to realize:

1. Most of the obviously valuable names, the low hanging fruit, have been registered a long time ago. For example, you would have to be extremely lucky to find a single word dot com name available today. Instead, you must be more inventive and thoughtful.  You need to understand that finding potentially resalable domain names requires knowledge of the marketplace, knowledge of what types of buyers are active, and then research into the available names.

2. Many people buy domain names expecting to immediately sell them for a huge profit. This is very unlikely to happen if you don’t know what you are doing or if you don’t choose the right names. What’s more, if you register domain names but then fail to sell them, you will be out of pocket for the registration fees.

3. If you register names that infringe trademarks, they are likely to unsaleable. This is because trademark holders have options available to them to pursue cybersquatters, and can even sue in the courts.  It is therefore best to stick to generic non-trademarked names.

In short, developing a successful domain flipping and trading business, is not a unskilled job – it requires a considerable amount of expertise and knowledge. You can probably develop such skills yourself over a period time, but you should also try to talk to and learn from others who have experience in this business. You might also find guides such as Brian Pubrat’s “Domain Cash Vault” or Edwin John’s “How I Sell My Domain Names”, to be a big help too.

By S. Tanna. Discover more about flipping domains at http://www.domaincavern.com/book_domain.php

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