Page |7 CHAPTER ONE: WHAT IS DOMAIN FLIPPING? ‘Pe found that it’s quite easy to understand the steps involved in flipping a domain by looking at the process alongside house flipping ‘The concept of Domain Flipping isn’t all that complicated —but executing a successful domain fip involves careful attention to detail and a good undesstanding of your target market ‘When you flip a house you buy it at a good price, make improvements, and then sell it fora (hopefully) nice profit. When you flip a domain name you buy it for a good price, make improvements, and then sell it for anice profit Sound similay? It is —but domain fipping is acompletely different masket vith entisely different mules. ‘When you flip a house there are several key steps in the process 1. Understand the market you ate selling in. Find houses similar to that which you ase planning to buy (often called “comps”) and detesmine thei selling price 2. Set a budget based on the selling price of comparable homes. Ifsimilar houses are selling for $300,000 andyou can buy the house for $150,000 you know that you have to keep your budget below $150,000 to tum a profit, Ficup the house, This can take anywhere from a feurweeks to a fewrmonths. House Aippess work hard to get their fips fixec-up in as little time as possible 4. Sell for a profit By knowing the price of similar houses the flipperhas a reasonable expectation of how much their house will sell for. A real estate agent will come to the house and detenmine the best listing price ‘When you flip a domain, a similar process is followed 1. Understand the market you ate selling in. Find domains with names or categoties, similas to that which you ase planning to buyPage |8 2. Set a budget based on the selling price of comparable domains. Ifyour domain contains the word “chat” and is less than 8 charactess long, you'll want to look at similar domains like “chatnow.com” ot “letschat com” and eee what they sold for. Ficup the domain. A domain’s value is determined by two main qualities — one is tsaffic how many people ate coming to the domain, and the other is name-value ‘Name-value is how much the domain is worth simply because of the name recognition it has (ex Cars.com, Stocks com). A domain can be fixed-up by ‘generating more traffic to the site, developing a user-base, or setting-up asclid foundation for someone else to build on. 4, Sell for a profit By knowing the psice of similar domains the fipperhas a reasonable expectation ofhowmuch the domain will sell for A domain appraisal sesvice ot ptoftssional domain consultant can help detesmine the best listing price for the domain, ‘As you can see — domain name flipping and house flipping have a lot in common. ‘Throughout this book I will oftentimes use compatisons between house and domain flipping to better elucidate my methodology. In the coming chapters I will cover each step of the domain flipping process in detail. The puspose of this book is to supply you with all of the infoumation and resources you need to begin domain flipping sight away ‘With domain fipping, no steep initial investment must be made. The cost of your fist flip can be as little as $10 but can easily setum overtwenty-times your initial investment! ‘Remembers, 2s I said in the introduction — this is not a get sich quick idea. Domain flipping is a process that takes time and careful planning Its not for everyone andit cestainly takes more than a fewhouss a week, but for those who undesstand the process, thers’s money to be made