Domain Flipping

Domain flipping is the practice of purchasing domain names at a low price and reselling them at a higher price, typically to end users or other investors. Similar to house flipping in real estate, successful flippers identify undervalued names — often at registration price, in [[domain-auction|auctions]], or through the [[domain-aftermarket]] — develop or hold them briefly, and then sell at a profit. The margin depends on recognising demand before the broader market does, executing fast outbound outreach, and keeping [[domain-holding-cost|holding costs]] low enough that the portfolio remains cash-flow positive between sale events.

Example

An investor registers solarpanelquotes.com for $12 at a registrar, lists it on Afternic for $4,500, and sells it six months later to a solar-energy lead-gen startup — a 375x return.