Saturday, August 1, 2009 /
What Is Domain Flipping?
If you know anything about the real estate market, you’ve probably heard the term “house flipping” used. Investors can make money by house flipping in two ways: They can either find homes below market price, buy them, and resell at market value, or they can buy fixer-upper houses, make repairs and improvements, and sell them at a higher price that reflects the increase in value.
One of the problems with house flipping is that it requires substantial amounts of money to change hands. Although it is possible to obtain financing to buy the properties, the money involved carries with it a certain amount of risk. Many a real estate investor has made a living through house flipping, but it can be tough to get started without a financial cushion.
Domain flipping is based on a similar concept. It involves purchasing domain names (also known as virtual real estate) and selling them for a profit. You can register new domains, or you can buy them from webmasters who have already registered them. You can then turn around and sell them for a profit immediately, or you can build websites for them and increase their value before selling.
The most notable differences between house flipping and domain
flipping are:
• With domain flipping, there is little risk involved. You can register a new domain for around $10, and it is possible to build a site for it at very low cost. You will rarely (if ever) lose any money, and there is great potential to make huge profits.
• The real estate market isn’t doing so well. It has its ups and downs, but it has gotten very slow recently. The virtual real estate market, on the other hand, is pretty steady. With the growing tendency for companies to take their businesses online, and more and more print publications switching to online formats, the demand for good domains is high. The economy doesn’t have as large of an impact on this as it does on such things as real estate. It is a good time to get involved
in domain flipping.
One of the problems with house flipping is that it requires substantial amounts of money to change hands. Although it is possible to obtain financing to buy the properties, the money involved carries with it a certain amount of risk. Many a real estate investor has made a living through house flipping, but it can be tough to get started without a financial cushion.
Domain flipping is based on a similar concept. It involves purchasing domain names (also known as virtual real estate) and selling them for a profit. You can register new domains, or you can buy them from webmasters who have already registered them. You can then turn around and sell them for a profit immediately, or you can build websites for them and increase their value before selling.
The most notable differences between house flipping and domain
flipping are:
• With domain flipping, there is little risk involved. You can register a new domain for around $10, and it is possible to build a site for it at very low cost. You will rarely (if ever) lose any money, and there is great potential to make huge profits.
• The real estate market isn’t doing so well. It has its ups and downs, but it has gotten very slow recently. The virtual real estate market, on the other hand, is pretty steady. With the growing tendency for companies to take their businesses online, and more and more print publications switching to online formats, the demand for good domains is high. The economy doesn’t have as large of an impact on this as it does on such things as real estate. It is a good time to get involved
in domain flipping.
Subscribe to:
Posts (Atom)