Should you just sell the domain name or develop a website first?
With domain name flipping, you buy a domain name and then sell it for more. This is a great way to make money online, yet it is not the only thing you can do with your domain name. You can also create a website first. So, which method is best? To determine your best option, review the pros and cons.
You need the domain name
Whether you prefer to flip a domain name as is or create a website first, you need a domain name. There is not a way around buying one. Fortunately, this is very straightforward and low-cost. Many websites have domain names available for less than $10.
In terms of earning money, each possibility has its pros and cons. For instance, domain names aren’t always easy to flip. Business owners who want to invest in domains in some cases approach the domain owner, but in most cases you have to promote your domain to sell it. Except when you turn to cost-free solutions, this can get expensive. You could deal with a one time fee, a monthly listing fee or even a percentage from each transaction. Either way, do not put too much money in to promoting your domain, as it will cut into your earnings.
A website increases the costs but may add value
If you choose to develop a website or blog first, you will have even more costs. Not only do you require a domain name, but you will also need a web hosting plan. Because your intent is to sell the website, you should not spend too much on the hosting plan. Always keep your expenses in mind and choose a low cost hosting package. $10 a month will cover what you need, both with regard to storage space and bandwidth.
As earlier explained, you can expect some costs to promote your domain name. The same fees apply for selling your website, but they could be higher. To reduce costs, look for other options. Advertising your website on flippa.com is the solution for most people, but you could also offer it for sale in free classified ad sites, like Craigslist.org. Or you could place a “For Sale” tag on your website to promote it to your visitors.
In terms of your earnings, you may assume your website to bring a higher return than your domain. That is if you have created a website that adds value to the domain. And you should also bear in mind that the person purchasing your website could want to further develop it. As long as you get a sale and get your asking price, take the deal.
Another way to make money with domain name flipping is to wait for a business owner to approach you. This is hit or miss and you could wait a year or more. With that pointed out, this is the ideal way to score a huge price as the selling price will raise when there is a demand.
Three ways to flip domains and websites
So we have covered two options: you can post a domain name for sale as is or hold and wait for increased demand. Your decision will depend on how long you can wait the profits. The third option is to develop a website or blog. When finished, the website is ready for sale and immediate use. A sale, however, isn’t guaranteed. Prospects would like facts to prove they can earn money with the website. If you have the time and know-how, create some traffic to the website and monetize it. If you can show that your website already generates some revenue, you will get more.
In short, both the reselling of a complete website and the flipping of a domain name have their advantages and disadvantages. If you are serious about earning money online, consider both.
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