How To Flip Your Domain Or Portfolio For Maximum Profits

This article will go over my methods to flip domains into profits.  This is how I do it & what seems to work the best for me.  The best advice I can give someone is to make sure the domain you are selling is a domain that you believe in & holds value. Everyone has a different opinion as to the quality of a domain, if it holds value & if it makes sense. The better a domain is & can fit into being put to use – the better the chances are it’ll sell. Let’s go over the points I cover & how I have sold many domains for excellent profits. On average, you can expect to receive between $200 USD – $900 USD per domain name. Sometimes the sky is the limit & other times you will get nickel & dimed if your target buyer doesn’t see the value in the website url.

I like to break up the steps I take into these simple tasks:

1.) Find people who can use your domain name. Start off with a Google search. Eg, if your domain name is: OceanPottery.com – then do a simple google search for: Ocean Pottery. Quotes are optional, but Google offers a ton of searches (Global, Local, 100 Results, Exact Term, so on..) So it’s up to you to get creative & pay attention to results you feel could fit. For example, Ocean Pottery discovered some results that I would like to contact:

oceanartpottery.com

adropoftheocean.co.uk

oceanfirepottery.com

piraterosepottery.com

And a lot more results. After I collect a list of prospects, I take the time to give a weight to each prospect. The weight comes from visiting the buyer’s site & learning a little about their business. I ask myself, why would this business benefit from my website url? Is it easier to remember? Is it something I would consider buying if I was in the buyer’s shoes?

I then proceed to short down my contact list further. I like to visit the buyer’s website & find a contact form, phone number or email. Anything I can use to get a hold of the buyer & offer a pitch to sell my domain. If i’m working during the day, I will usually pick up the phone & call the business. Feel them out if the person I am talking to is a decision maker. If not, can he put me in touch with the decision maker of the business? If I can’t get a hold of someone or I leave a voicemail, I like to follow up with an email or send an email to buyers who don’t have contact info & only an email.

I am pretty good at talking to people on the phone, but a pitch I find works well is just to be straight up to whoever you talk to. You can learn alot about the buyer & determine if he/she may buy the domain based on a phone call. You can usually seal a sale on the first phone call if you play your cards right because usually the business will actually need your domain & they will show interest to buy.

Something I would recommend against is using a service like LeadRefs.com or Estibot’s lead generation system. There is no real way to cookie cut this process or automate things accurately. You’ll find that sending bulk customized emails will just get angry replies & low ball offers. The best advice I can give you is that if you believe in the domain & that you can sell it, taking the time to send personalized emails becomes a fun task versus feeling like work. It must be a good trait that I carry to care about my buyer & make sure that the domain is a perfect match for their needs. Bombarding inboxes with  the same email will probably end you on the naughty list at the forums like this one: emails from domainers selling crappy domains

So the best advice I can offer is to believe in your domains. Would you want to buy it or is it crap? Why is it resellable to you? What price do you want for your domain? Can the domain fit the buyer’s exact needs? How many buyers do you expect may draw an interest to your domain? Do you have a good sales letter & pitch to present the buyer? First impressions are important, do you have an outlet domain that is legit from which you are selling domains from? If you were a buyer, would you trust your own website for the sale to complete from A-Z?

In the future, I plan to share email letters that seem to work better for me. I’d also like to share phone & face to face tactics that seem to work for me in determining a good sense if they are ready to buy or not. The price also holds some weight in determining if the sale is realistic or not. Too low & you’ll scare the buyer away as a scammer. Too high & you’ll scare the buyer away and lose the sale.

Good luck in selling your domains & more on lead generation & sales conversions the way!

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10 Comments »

 
  • Jim says:

    Hey Dan,

    Great post, thanks for sharing some of your experience.

    Interesting point about pricing strategy (too low can cause doubt and too high can scare away buyer). Depending on the domain, I’m thinking that “sweet spot” for small business buyers is $400 to $1200 – what do you think?

    Also, do you “stagger” contacting your potential buyers (ie. if a Google search identifies 10 potential buyers, do you contact 5 and wait, and then contact remainin 5, or all 10 at once?)

    Cheers,
    Jim

  • admin says:

    Hi Jim,

    Thanks for the comment. I have to agree with you on the pricing structure. I tend to sell most domains for around $599 – $799 which seems to be a consistent sweet spot for my sales.

    I don’t stagger my leads & I basically try to work with the time I do have available to understand more about the business I am targeting for a sale. Even if I don’t get the sale, I can build a partner or customer for other services like brand marking & domain / website development.

    Dan

  • Rob says:

    Hi Dan,

    Good article. I’d love to see an example or two of email you might send to prospective buyers. That is one thing I am never confident about after I press the send button.

    Thanks
    Rob

  • Athene says:

    Good info.

    One of the things I’ve found most challenging when talking to potential buyers is convincing them of the real world business value of high quality domain. I’ve spent quite a lot of time breaking down some barriers with clients advising them that having just one domain is an increasingly risky strategy (particular with algorithm changes coming in thick and fast, one of our clients had his entire business website virtually de-ranked because all of his incoming links were matching his business name – totally natural, but try telling Google that!).

    So we’ve managed to hit on an analogous way of explaining the value of multiple, high quality domains which is to point out to the client that they wouldn’t use the same piece of marketing material over and over again – they use creative and copy that is to specific to the audience they’re targeting. This seems to hit the right buttons with them, relating domain strategy to normal, offline marketing strategies.

  • Dreighen says:

    Dan,

    Excellent article. I am fairly new to domaining, and only own about 8 domains so far (didn’t want to make the newbie mistake of hand reg thousands of them lol) but while my long term goal is developing the domains I purchase, at the moment I’d love to learn this process of flipping domains in that price range.

    Are you acquiring your domains that you flip from drop and expired lists? Do you hand reg any of them? If so what would you say your percentage of hand reg domains are?

    I’m learning more about keyword tools to find valuable keywords to form domains around, but from what I’m getting, people are scouring drop and expired domain lists the most. Is this correct?

    Thanks,

    Dre

  • admin says:

    Hi Dre,

    It’s a good idea to develop the domains you own. I’ve found that a developed website adds value in the buyer’s eye because the domain drew enough interest to become developed into something versus looking at a parked or error page when visiting the domain.

    I usually acquire domains on the drop that expired. I usually don’t hand register domains, but I have in the past. I’ve found that hand registered domains are a little tougher to find & sell. When a domain appears in the drop list, it means that someone at one point believed in the domain. I like the variety the drop lists provide & makes it easier to find valuable domains.

    It’s correct in my opinion that people scour the drop lists. The drop lists provide an easier way to find good domains because you can sort by keyword(s), stats & more. I find that hand registering domains requires research & creativity. I haven’t had a lot of success flipping hand regs as much as I do with expired domains. Often times, the previous owner of a dropped domain will contact me to buy back their domain. I don’t notice much interest in hand regged domains like the dropped domains provide.

    Dan

  • admin says:

    Hi Athene,

    Depending on the business size, multiple domains are a good investment. It’s smart for you to mention the importance to cover various angles of their business strategy via domain names. With google’s changes, their brand awareness is spread across multiple domains which are later found & ranked by google serps. The issue I find is that most small to medium businesses I deal with are not ready for more than one domain. Most of my customers operate solely from one website url.

    Dan

  • admin says:

    Hi Rob,

    I will be adding example letters that seem to work for me. While an email will never be a one size fits all, I find that highlighting reasons why I feel the domain is a good fit helps. Usually the domain sells itself & the buyer won’t bother to read into the email too much, but instead inquire to purchase the domain.

    Dan

  • Hi Domainafterlife,
    I take your point, Over the last couple of years, the market for domain names on the Internet has become increasingly more profitable. More companies and people desire to have their own websites these days, and because of this, they would like to have their website names easy to remember.
    Keep up the posts!
    alert@domainwesell.com

  • admin says:

    Hi Domain Sale,

    I think more & more people and companies are realizing the value in domain names. As you mention, I agree that people are finding the importance of an easy to remember web address. They are also realizing that a more direct domain name can crush their competition in regards to offering products or services for sale.

    Dan

 

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