Domain flipping: Buy domains at registration cost (£8-15), sell for £200-50,000. 23% of flippers earn over £10,000/year. But 68% never make first sale. High skill ceiling.
Business Model
Register or acquire undervalued domains. Hold 1-3 years. Sell at profit to businesses needing that domain. Profit = sale price minus (acquisition cost + renewal fees + time).
Sourcing Strategies
Fresh registration (hand-register new domains based on trend prediction), expired domain acquisition (backorder valuable drops), marketplace buys (purchase undervalued listings on Sedo/Afternic), direct outreach (contact owners of unused domains).
Trend Prediction
Emerging technologies, new regulations, cultural shifts create domain demand. "Crypto" domains valuable 2017-2021. "AI" domains hot 2023-2025. "Carbon" (carbon credits) emerging 2024-2025.
Valuation Skills
Critical skill. Misjudge value = overpay or undercharge. Learn: keyword search volume, commercial intent, industry budgets, brandability assessment, extension preferences, length impact.
Beginner mistake: Registering domains YOU like instead of domains BUSINESSES need. Your personal taste irrelevant. Market demand determines value.
Portfolio Size
Beginners: 20-50 domains (£200-500 annual renewal cost). Intermediate: 100-300 domains (£1,000-3,000). Professional: 1,000-10,000+ domains (£10,000-100,000). Start small, grow as sales validate strategy.
Pricing Strategy
Three approaches: Low-price volume (£200-1,000, sell quickly), mid-market (£1,000-5,000, balanced), premium (£10,000+, rare sales). Most successful flippers focus mid-market for liquidity.
Listing Platforms
Sedo (largest), Afternic (part of GoDaddy, good distribution), Dan.com (modern interface), Flippa (includes websites, not just domains), direct sales (own marketplace).
Marketplace Fees
Sedo: 10-15% commission. Afternic: 15-20%. Dan.com: 9% (no success fee if you drive buyer). Lower commission = more profit but potentially less buyer traffic.
Sales Timeline
Average time to first offer: 4-8 months. Average time to sale: 12-18 months. Premium domains (£10,000+) often take 2-5 years to find right buyer. Patience essential.
Negotiation Tactics
Never accept first offer immediately (signals desperation). Counter at 80-90% of list price. Use lease-to-own for high prices (£500/month often easier than £8,000 upfront). Escrow mandatory.
Legal Risks
Trademark infringement: Registering "Nike" domain = lawsuit. Typosquatting: "Niike.com" = UDRP loss. Cybersquatting: Registering solely to sell to trademark holder = illegal. Register generic terms only.
Safe domain flipping: Generic dictionary words, emerging technologies (pre-trademark), geographic + industry combos ("LondonTech"), creative brandables. Avoid existing brand names.
Tax Treatment
Domain sales are taxable income. Acquisition and renewal costs deductible. Register as self-employed if earning £1,000+ annually from flipping. Keep detailed profit/loss records.
Realistic Earnings
Beginners (year 1): £0-500 (learning phase). Intermediate (year 2-3): £2,000-8,000 (validated strategy). Professional (3+ years): £10,000-100,000+ (large portfolio). Most quit before first sale.
Trademark Lens checks domain ideas for trademark conflicts before you register for flipping - avoid legal risk by verifying no trademark ownership exists.