Can you turn $2 into $200 by flipping domain names?

Imagine turning tiny $2 to $8 dollar investments into hundreds and even thousands of dollars, quickly and easily, all from your computer, regardless of your past experience.

You might have guessed it, it’s related to domain and website flipping. Most think it should is reserved to experienced marketers or companies with a lot of seed capital. Wrong!

Do you know that you can start flipping domains for less than $2?

Indeed, you can purchase .info domain names for less than $2 and start implementing some quick-n-easy-n-profitable flipping strategy, such as:

Strategy #1: You found a good domain name, and you flip it as is (with no content, and nothing else than the domain name).

Your added value was to find a trendy, catchy domain name that you know would be of interest to some marketers (niche marketers especially).

Think you cannot make a lot of money this way? You would surprised to be able to flip a $2 domain name for $100, or even $1000.

Once you do it a couple of times…you’ll get the hang of it and simply rinse, repeat, replicate and…collect cash!

Parking the domain will help you get some visibility (if you list it at SEDO for example), and also generate some money before you sell it. But parking domains as a business model is not what I call ‘domain flipping’. Domain parking can be used to park a domain (display a page with ads instead of a “Not Found” error) while you’re look for a buyer for your domain.

You should see Domain Parking as a way to ease the sale of your domain, not as a business model per se. The Domain Parking business model is a capital intensive business model that requires extensive testing, and a HUGE number of domains.

Not convinced? Check these recent trades (in case you think that this business model crashed with the Internet Bubble in 2000):

Affiliate.com (August 2008) sold for $579,900

Printer.com (August 2008) sold for $800,000

OK, those are one-word domain. So what about these ones:

TripleCreditReport.com (August 2008) sold for $260,000

MyrtleBeachCondos.com (May 2008) sold for $120,000

SoutLakeTahoe.com sold for nearly $100,000 2 weeks ago!

FruitBaskets.com sold for $142,500 in February 2008.

I think you’re now mentally scanning all the domain names you could have purchased, and all the ones you could get…and how much profit you could generate from their sale.

Important tip: do not EVER register domains based on existing trademarks (even derivative domain names, or typo variations of those trademarks).

Strategy #2: A more advanced strategy consists in adding value to the domain name itself in order to sell it as a more ‘complete’ business package: domain + content and if possible traffic, backlinks, search engine rankings and profit.

It will take more time to achieve, but then the ROI could be even greater, especially if you do most of the work by yourself.

Think at it this way:

- you register a .com domain for $8
- you then install a WordPress blog on it (let’s say you’re paying $5 a month for the hosting plan)
- you then start blogging during 30 days by posting 1 new article a day (could be from PLR source)
- in the meantime, you also try to build a presence by submitting these articles (or abstracts) to article directories, you start commenting in related blogs adding link back to your valuable content on your own domain, you start contributing in related forums, you submit your site to directories…
- when you set up your WordPress blog, you did not forget to add some banners to related affiliate programs, AdSense ads, or a report you’ve developed based on the first 10 or 15 days of blog posting

General tip: when you blog, do not forget to recycle your content by creating derivative products with it (special report to give away, e-book, autoresponder series, article for e-zines…).

You see the point of this strategy. You’re creating a website…WITH the exclusive goal (this is really important) to flip it in xx days (replace xx with anything you wish. I recommend 90 days so that you can give some history to potential buyers, and also so that you really get a performing and effective process).

If you can generate $100 profit a month from your newly created website steadily and consistently (at least during 2 months), then you could easily sell your website for $1000 to $1500 (especially if you can prove your traffic is not 100% dependent of search engines). Thus the reason for posting in related blogs and forums, submitting your site and article to directories.

This requires some commitment, but it is a really performing and profitable strategy. Probably the most rewarding one.

Strategy #3: This strategy requires some seed capital: You buy existing websites that you tweak, transform to improve their performance and then resell them at a (much) higher price.

It will take some experience to identify the good opportunities though.

But once you’re familiar with scenarios A and B, you can cut a lot of the development process by simply tweaking existing sites based on your experience of how to increase the profitability of a web page.

In 30 to 60 days, you could double or triple your investment.

I think you’re starting to envision how you could use those strategies to add a new income stream to your online business (or simply to create your first income stream).

In summary, either you make money from the appreciation of the name, from the traffic it gets (and thus the profit it generates) or from sprucing up existing domains.

But you need to do things right from the start, and I am sure you don’t want to spend tons of money to learn how to profit from domain and website flipping the trial-and-error way.

To help you keep your money to purchase domains, and expand them into an income stream, J.P. Schoeffel has released an exclusive book on this business model. Instant Domain Cash is 45 pages long…for less than the price of a domain name!

You could argue that domain name price can vary from $2 to $9 generally (and sometimes $50 for non-common TLD, such as .tv).

You’re right, just know that you could get it for even the lowest domain price available.