Domain Flipping Defined

I’ve always noticed that there is no one definition for domain flipping – the word means different things to different people. Currently I find there are three main fields of thought when it comes to domain flipping. There’s no right or wrong here, just different approaches.

Domain Flipping Definition #1:
Buy a domain name and immediately put it up for sale. Recently a domain flipper discussed the sale of 1,700 domains in 2007 on Namepros [READ THREAD]. These flips are easy because they require no work outside of purchasing the name. The downside is they oftentimes only represent sales in the $xx or $xxx category.

Domain Flipping Definition #2:
Buy a domain name and start a legitimate business that can then be sold with the name as a business. This involves actually building a business around each domain you purchase. If done right can certainly generate high sales as you are selling much more than a name. Can be time-consuming and expensive but those who are good at it make great money.

Domain Flipping Definition #3:
Buy a domain, develop a custom website for the domain with actual content that visitors would find useful and Google Adsense or similar advertising. List the website in all major search engines and sometimes use PPC advertising services to monetize the domain before it is sold.

I’d like to point-out that there are of course other definitions of domain flipping as well as variations of the three listed above. I feel that these are the three core definitions that are used right now.

I myself use Definition #3 as I’ve had a lot of web design and site optimization experience. I find it rewarding to build a great website, monetize it, and watch it greatly increase the value of my investment.

What kind of domain flipper are you?

{ 2 comments… add one }

  • christina September 16, 2013, 6:13 am

    Good job for clarifying that! I just wanted to ask, if someone buys a domain and then parks it, does this fit in number 3 definition?