So, that's how I just started flipping domains....

[Shahar]

Hey guys,
I thought that it would be wise to document and share here the process my first domain flipping tries. I censored identifying details as for the domain names, niches, selling prices and companies involved. You could figure them out by guessing, asking me in private or approaching the appropriate forums.
First of all, defining a goal - since it's a learning practice, making a profit which doubles the initial investment and covers the basic additional fees would be sufficient for me.
The budget is 60$, not a cent more (which means that I expect a profit of 120$). Since I don't purchase as a company, but an individual, and privacy matters to me - I have to consider privacy domain costs when buying the domains.
Since *Company A* sells in my local currency, I would prefer to use their services for purchasing the domains. As for the auctions, *Company A* Domain Auctions services are popular and trustworthy, which makes me want to use their service (also in the local currency). Nonetheless, during my previous research, I've also noticed that domains on *Company B* are selling nicely as well - so, why not trying both for the sake of the learning? (spending only few dollars for using *Company B*'s auction service)
Eventually, the budget is enough for purchasing two .com domains for one year (including private registration) and for the auction membership in each company. For now, I don't want to deal with other extensions since .com domains sell better most of the time.
For the learning case - I assume that my potential end-user would be a *NICHE* company, so I'll decide to focus on domains which include *NICHE* in their beginning/end plus another trendy word (3-4 letters). Using an analyzing software exploring both LLL*NICHE*.com and LLL*NICHE*.com (LLL is a dictionary word), I figure out that there are only 3 LLL*NICHE*.com formatted available domains, which are:

1. VCC*NICHE* dot com
2. CVV*NICHE* dot com
3. CVC*NICHE* dot com

Let's looking at each of the domains:
#1 - VCC*NICHE* doesnt mean anything which could be related to *NICHE*, so I cross it off the list.
#2 - CVV*NICHE* makes some sense for a specific type of *NICHE*.
#3 - CVC*NICHE* same as #2.
It doesn't seem to be any TM registered for the #2 and #3, and by checking their WHOIS history of #2 and #3 domains both existed for about 11 years registered by one person at max. In NameBIo, other CVC*Niche*.com/ CVV*Niche*.com made a very nice profit (from XX$ to XX,XXX$).
Seems fair to me, and I purchase the domains in *Company A* - so one would be going to their auctions and the other to *Company B*. I have a feeling that I'll have higher revenues in *Company B*, so I choose the best appraised domain to their account. Both of the domains are put to auction for exactly one week.
That's the point where I wait until next week and wait for any results, wish me luck
If you have any comments or tips for the future, please comment.

 

[imc]

Would be. Could be. Should be. I think you should wait until results are in. Until then, its speculation. I'd suggest you follow a strategy already in place which works.

 

[Shahar]

Would be. Could be. Should be. I think you should wait until results are in. Until then, its speculation. I'd suggest you follow a strategy already in place which works.

Could you please link me to guide with a specific strategy? (Link me here or in PM)

 

[imc]

I don't have a strategy for flipping names, really. If you own a good name which is business launch worthy, an end user will approach you. If you approach others, be prepared to sell for reseller or below market values.

 

[Shahar]

So, after a night full of thoughts - I decided on cold turkey cancelling those domains and issuing a refund.
I honestly thought that these domains were trendy, but I also didn't take into account couple of important factors:
1. Domains on NameBio don't necessarily show successful sells in the past, but only their prices when they were put on sale (unless it is specifically mentioned in Historical Sales section).
2. Keywords research was poorly done. Retrospectively, I can't really think that someone would ever google either CVV or CVC + *NICHE* (AKA foe or vat + tech) and expect any valuable product.

On the way I discovered that GoDaddy (AKA *Company A*, *Company B* was Flippa) removed their email support two years ago, so I had to use their phone services. Wait couple of minutes on phone, yet they gave me a quick service.

Total damages were only about 5$ in GoDaddy's Auction Membership (which still might be useful for the next time) and 9$ for the auction on Flippa.

Lesson #1 learned, I'll try doing better next time.

 

[D Haynes]

So, after a night full of thoughts - I decided on cold turkey cancelling those domains and issuing a refund.
I honestly thought that these domains were trendy, but I also didn't take into account couple of important factors:
1. Domains on NameBio don't necessarily show successful sells in the past, but only their prices when they were put on sale (unless it is specifically mentioned in Historical Sales section).
2. Keywords research was poorly done. Retrospectively, I can't really think that someone would ever google either CVV or CVC + *NICHE* (AKA foe or vat + tech) and expect any valuable product.

On the way I discovered that GoDaddy (AKA *Company A*, *Company B* was Flippa) removed their email support two years ago, so I had to use their phone services. Wait couple of minutes on phone, yet they gave me a quick service.

Total damages were only about 5$ in GoDaddy's Auction Membership (which still might be useful for the next time) and 9$ for the auction on Flippa.

Lesson #1 learned, I'll try doing better next time.

You're learning and thats the main thing! If you only ever lose 5 bucks you'll have done well and you definatley want to keep using GoDaddy auctions anyway whether its for selling or buying. Realising your small mistakes before they turn into big ones is key. Good luck with your next steps!