By S. Tanna. Discover more about flipping domain names at http://www.domaincavern.com/book_domain.php
Domain names, are, for the most part, are sold on a first come, first served basis. That is to say, the first person to register any particular name, retains control of that name until they either transfer (often by selling) that domain name to another person, or fail to pay their annual renewal fee. This means that the person who is first to recognize the value in a previously unregistered domain name, can register it, and keep it until able to sell it for a profit. Since many types of domain names, including, com, net, org domains can be registered for just a few dollars per year, and but the value of owning some domain names is many times that, there is a potentially lucrative fee in selling on ("flipping") these domains in what is known as the aftermarket.
There are however some important facts you need to realize before considering entering this business:
1. Most domain names are not particularly valuable in themselves - so if you register the wrong names, you will probably have a hard, maybe impossible, job of selling them on. In this case, you will of course be out of pocket for the registration fees of those domains that you fail to sell.
2. Most of the obviously valuable domain names, such as commercially lucrative single word com domains have been registered a long time ago. You can't expect to find low hanging fruit like that. Instead, you must know what types of domain names are in demand, and look for available but potentiallysaleable domains in those particular areas.
3. If you register domains that infringe trademarks (this is known as "cybersquatting" or "domain squatting"), you are unlikely to be able to sell them. Furthermore,the trademark holder may come after you using domain dispute procedures to try to get the domain, or may even sue you in court.
4. As well as knowledge of the research, sales and marketing aspects of domain flipping, to be successful, you will also need to learn about the technical procedures for transferring domains, as well as when and how to use domain escrow services.
In short, like any other business, success with domain flipping does require knowledge and expertise. There are also risks involved (some of which are mentioned above), and you also need to know about these. Some of these things you can learn along the way, but you may also find it helpful to talk to other people with experience in the domaining industry, and perhaps to read guides such as Brian Pubrat's "Domain Cash Vault" or Edwin John's "How I Sell My Domain Names".
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