Monday, November 9, 2009

Domain Flipping: A Guide to Success

By Daniel Taylor

When you do domain flipping, you can also do website flipping. "Domain flipping" is somewhat like house flipping, whereby you buy a house, fix it up, and then resell it for a profit. With website flipping, there are three different types. You can be a beginner who builds a website from the ground up and has a keyword rich domain; you can be a "standard flipper," whereby you purchase an existing website (much like house flipping), fix it up, and then resell it; finally, you can also be a long-term website flipping investor, whereby you bring in an income as you fix up a website.

All three stages can be profitable and you can earn income while you are enhancing the websites. As part of domain flipping, you can buy a domain name and use keyword content on your website to move it up the search engine ranks. As you build the website and move the domain up in the search engines, it becomes more valuable and other websites will want to link to yours, generating Adsense revenue. This is the way that most of the successful domain flipping and website flipping transactions work.

What can be difficult, is finding the right domain name to buy and the most effective way to make it highly ranked in the search engine findings so that it's worth more money when resold. Essentially, you can buy a domain name, put a website together, and work to make it more popular with website rankings, which in turn will make you ad revenue even as you drive more traffic to your site. This makes both your domain and website worth more, which means that somebody will likely want to buy it to become part of their business.

If you want to be a long-term website flipping investor, you'll want to generate income streams by purchasing already established website flipping based businesses and domain flipping businesses. Each level of flipping can increase the value of the website itself, which can also grow the income stream that comes with it. It's based on information, though, and you're not getting any real product to sell, so that this type of pursuit can be nebulous. As it becomes more popular with the search engine rankings, it gets more traffic and more advertisers.

But how do you find successful domain names for flipping and building successful websites? There are a few programs that give you advice and offer helpful tools for domain flipping and website flipping. You can use keyword tools, dynamic domain name checkers, and SEO optimization to build an online business that has no business behind it, other than the domain name and website. You can convert a $10 investment in a domain name, into several hundred fairly easily.

If you start out as a website flipper, you may first begin as a domain flipper. For example, a $10 investment in a successful domain name can become suitable for flipping quite quickly. Some domain flipping businesses actually do this full-time whereby they buy multiple domain names based on local businesses, get them recognized, and then sell them to the already established businesses who may be interested in them. There are lots of ways you can become successful at website and domain flipping.

Website flipping is becoming more popular as the most popular domain names are already taken and it is slightly harder to make money in domain flipping, while there is still plenty of opportunity in website flipping. It still comes down to starting with a good domain name to drive online traffic and increase the profitability of the website.

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