March 11, 2020
Requested by Mr. Calvert
Hey this is Daniella from Beginners Passive Income and today we’re gonna be talking about how to make passive income by flipping domain names. If you’re new to this channel hit the subscribe button this is where we talk about how beginners can make passive income online or offline.
If you’re interested in learning about our 12 favorite passive income ideas for beginners check out the webinar it’s listed above, you can check out 12 passive income ideas for beginners in that webinar. Let’s dive right into making passive income with domain names. Now, what is the domain name? If you’re a beginner you might have this question.
A domain name is where someone can access a website so it’s the dotcom, it’s the dotnet, the dotorg, it is the address at which someone can get to a website. You can purchase those things, you can actually pretty much lease them because you don’t actually own a domain name. Once you buy it you have to pay every year to be able to reserve that domain name for yourself.
Domain names are actually super cheap, they only cost about $10.00 a year which is an awesome deal and the thing is people can flip them, so if you purchase a domain name you reserved it for yourself for a year, for example, and someone is interested in buying that domain name from you and becoming the new person who’s going to lease it, you can actually make quite a bit of money from just having reserved it for yourself and then sold it to someone else. It’s just a simple flip.
Now, to a beginner you might be wondering well where do I even start? This video is for you it is going to be a absolute walkthrough of the process from research to purchasing to selling your domain name. In this process we’re going to be buying a couple of domain names and we’re going to be reserving them for other people to purchase online. If I sell any of these domain names in the future I will make a video and let you know how much money I made from them and how long it took to actually flip the domain names that we purchased. Alright, let’s dive right in.
- Find Your Niche: The first thing that you need to know is what niche you’re gonna focus on. Now, if you don’t know what a niche is it’s just a target market; who are you trying to serve? what is going to be your specialty within the realm of choosing domain names? There’s lots of different kinds of dough that you could purchase; maybe there’s something specifically that interests you more than anything else. Let’s have a look at something, I’m interested in for example. I have an awesome Xiaomi N 365 scooter I absolutely love taking that to get around town, it’s so much fun.
Electric scooters have become more and more popular and I can validate that statement by having a look at Google Trends. The video above demonstrates how I use Google Trends to find out if things are trending online. Definitely check it out you can pause this video watch that one and come right back if you’d like to continue, but I’m just gonna dive right into Google Trends and show you what I found for the term electric kick scooter.
As you can see over the past couple years electric kick scooters have become extremely popular, they are highly trending on Google. People are searching for them, they’re interested; there’s a good affiliate commission that you can make on these products. You could even sell them yourself online if you wanted to deal with you know shipping them yourself, it’s a lot of work. I would probably go the drop shipping route with this product, but it’s definitely something that people are interested in.
A couple of minutes ago I said that the brand name of my scooter is Xiaomi and it’s called an M365. Something I would absolutely not do is purchase that brand name because it is covered by copyright laws and lots of other things. That is a brand name that belongs to a company, do not touch brand names that already exist even if it’s a misspell or anything like that. You don’t want to go down that route because you have legal risks and things like that.
Of course, I’m not your financial advisor, I’m not your tax specialist, and I’m not your lawyer. If you have any questions with regards to these things definitely talk to a specialist in your area, but it is a well-known thing that you don’t want to buy domain names that have to do with established companies. So, if you find a good niche you can definitely start focusing on it, but think large right down the list of niches that interest you or topics or things that are you are interested in.
Other types of domains that are popular or you could have a look at are first name, last name domains. Let’s say for example John Smith. Of course, if you look for JohnSmith.com I’m absolutely sure it’s taken but if you could think of names others are more popular in certain countries or things like that first name, last name eventually, there might be someone who would be interested in purchasing that domain name and you could flip it to that person.
Other popular domain names consist in business names. If you could think of a couple cool business names or things that would potentially become a business, you could purchase those domain names. Now, if you’re going for company names you might be tempted by those short catchy startup names. I just want to let you know that a lot of startups are coming up with names and not even purchasing a dot-com (.com). Everyone should be purchasing a dot-com (.com). This is a general knowledge thing; people type something into the search bar they’re going to be looking for a dot-com, that’s one thing but some of these companies know that they’re going to be ranking very quickly on terms such as lime and bird.
Those are just the examples I’d like to take; lime scooters does not have lime.com and bird scooters does not have bird.com. If you go to bird.com, you’re going to see a bird website, you’re not going to see a scooter site. These are two very popular scooter companies that are located in Europe and in the States right now and that are renting out scooters to people locally. There are two very, very powerful startups and their name doesn’t have anything to do with scooters and their domain name is nada.com, so, definitely think of startup names or business names that would be interested in purchasing a dotcom (.com)
Another route that you could take are keywords: Keywords are words that people would actually type into Google. Our own website name is based on that; Beginners Passive Income. This is people who are looking to learn how to make passive income as beginners. If they’re typing that into Google they will find our website, if you still can’t think of an industry or anything that you’re interested in purchasing domain names you could always check out justdrop.com. Justdrop.com provides a bunch of domain names that were just dropped or that people did not renew.
They purchased it for a year for example, and then did not pay for it for a second year and they’re no longer the people who are actually leasing it. So, if you’re interested in purchasing a domain that someone previously owned and you could resell it. That is something that you could do. We’re not going to look down that route, we’re really gonna focus on actually finding something that you believe could have the potential to be flipped in the future.
- See if Your Domain Ideas are Available: The next step in flipping domain names consists in actually validating if that domain name is available. Let’s actually see if someone has reserved it yet or not, and if it’s not reserved let’s purchase it. If we know that there’s a potential for it to be flipped in the future. We’re gonna take electric kick scooter and put it into our next step in a second those are three keywords and we’re gonna see what I gives when we search for it to purchase that domain name.
We’re gonna take our electric kick scooter idea and we’re gonna drop it right into Namecheap. Now, I have chosen Namecheap to purchase domain names after a lot of research. This is an honest review. If you click on the link below I will receive an affiliate commission if you purchased a domain name through my link. This is after a lot of trial and error and I know that name cheap is a product that I use absolutely every day and I love it, you will see my back end where I have a lot of domain names that I purchased if I’m recommending Namecheap it is because I actually believe that it is the best domain name solution out there.
Namecheap offers amazing support and their back-end is extremely easy to understand. The third advantage is that they allow you to sell your domain names right from within their platform, so you can just click on “sell domain name” and push it online. I’m gonna show you the whole tutorial so stay tuned that’s the third step. Let’s go right back to our second step we’re gonna drop electric kick scooter into Namecheap and we’re going look for the dot-com. Wow! As you can see, someone is actually selling this domain name for over 5,000 Canadian dollars now that is amazing if you’re located in the States right now that’s about 5,000 US that we’re looking at here.
That domain name will renew at about $10 u.s. in the future, so someone literally reserved it for $10 U.S. a year and it’s flipping it for over $5,000. So, that’s a pretty much five thousand dollar profit which is absolutely amazing, so you can imagine the potential of flipping domain names online. I’m definitely not going to purchase that domain name because it’s already reserved and it’s way too expensive for our budget. We’re definitely looking for ten dollar domain names at the at the moment right now, as you can see is based on a couple of keywords electric kick scooter, it’s trending, it’s definitely super interesting.
Let’s mix this up a little bit, let’s look for electric kick scooter heaven that’s available but it is super long and I’m not sure everyone anyone’s going to look for heaven at the end of their domain name, but it’s available. So, as you can see this one is worth about nine American a year, so that’s super interesting, you’re just gonna have to take a bunch of your domain name ideas put them in here try to get the dot-coms or anything else if you’re interested but you can go very far I mean there’s dot-Club dot-live, dot-best. There’s just so many these days and the dot-com (.com) is the one that people are actually typing into Google. We might know a little bit more because we know how we can purchase these domain names and have different endings to them, but most people are looking for a.com. Unless you’re creating a trendy startup go for the dot-com.
- Purchase The Domain Name: Once we found a domain name that we actually want to purchase we’re gonna click on Add to Cart, and then view cart. This is where we can purchase the domain name.
Sometimes Namecheap has promo codes they also have really cool promotions, definitely check out beginners passive income com slash Namecheap if there’s any promotions available I will list them on our website and of course if you go through our link we will get an affiliate Commission and that would be really helpful for us to keep making these awesome tutorial videos.
Once you’ve confirmed your order you will wind up here where you can create your login and your account if you don’t have one yet. so just fill in your information to create your account and then click on create and continue.
- Put The Domain Name Up fpr Sale: Once you’ve confirmed your purchase the next step will be to sell your domain name make it available for purchase. What we’re gonna do is go into our backend, this is my back-end and there’s some things that are blacked out because it’s confidential information. As you can see I have a domain name that is for sale right here.
I’m just gonna go add another one all I’m gonna do is click on all of my domains so my domain list and then we’re gonna click on sell domain all the way at the bottom of the page, so just scroll down to the bottom of the page and click on sell domain. Then you’re going to be able to enter your listing information, your asking price, how much you’re selling it for your period so how long it’s going to be available for you, could add a little description if you would like, and then you can list it within a category.
Now, if it’s an adult listing you’re going to have to indicate that right here then click on sell domain and it will be available for sale in the interface just like we did in our search. As you saw electrickickscooter.com was available for sale and that’s how you can list your own domain name for sale. Let’s have a look at how passive this is, how expensive it is and things like that. Flipping domain names is fairly passive, all you have to do is purchase some really good domain names that have the potential to resell in the future and then park them in your interface and pay for them every year.
How many domain names you can purchase really depends on your budget. Do you have a very big budget and you can purchase a lot of domain names and you’re not too worried about the risk of actually not selling them? Because that risk exists, in that case, go for it. Spend five hundred dollars on a couple of domain names reserve them and then flip them on Namecheap. This is not very difficult especially if you’re a beginner we just went through the tutorial right now. The biggest part of the work is going to be actually finding the niche or the ideas or the keywords or the topics that are really interesting.
Also, definitely make sure not to take established business names or even spelling mistakes and things like that, it’s not a good idea that’s what’s gonna take you the most time; the research, but once it’s up and running you don’t really have much to do. As long as you don’t choose extremely seasonal names like Christmas or things like that then this passive income stream isn’t very seasonal, and the return on investment can be excellent, because if you list the domain name so people might actually negotiate it.
There can be an auction process in place and you might not sell it for the price that you listed it at, but you’ll have to agree if you have a whole bunch of people bidding on this domain name and people are bidding very low definitely keep it wait until someone bids high because there’s actual interest in it. if you like this passive income idea definitely hit the subscribe button and check out our webinar we have a bunch more passive income ideas for beginners.
Another thing that you might be interested in is flipping websites, so if you purchase a domain name and you see a potential for an affiliate website or things like that, you could actually be the website on that and make more money from it by selling it as a website on which you have created content and generated traffic. So, that’s another thing that you might be interested in if that video exists right now it’s listed above, if not it is coming in the future.