| The names that are used to identify web sites are | | | | do not sell. It is therefore necessary to research the |
| known as "domain names". The most common types | | | | market and understand what kinds of names are |
| end in .com, .net. and .org, although there are other | | | | saleable. Furthermore, since many domains, even |
| types as well. Domain names have an independent | | | | good ones, do not sell immediately, it may be |
| existence from web sites - a person can own one by | | | | necessary to acquire a portfolio of names with the |
| registering any previously unused name (although | | | | goal of successfully selling just a proportion of them. |
| there are some restrictions about what types of | | | | There is always a risk, especially if you do not know |
| characters, etc., are valid), which costs just a few | | | | what you are doing, that you may not be able to flip |
| dollars per year per name. | | | | domains that you register, and in that case, you |
| Domain name registration happens on a | | | | would be out of pocket for the registration fees. |
| first-come-first-served basis. This means that the | | | | * Domain names that infringe trademarks can lead to |
| first person to identify a potentially valuable domain | | | | disputes, potential loss of the name, and even getting |
| name has an asset, and it may well be that others | | | | sued. It is therefore important to educate yourself |
| are in interested in purchasing this asset from him. | | | | about these issues, and not to register names in bad |
| This fact has led to the development of a domain | | | | faith ("cybersquatting"). |
| name marketplace, and business ventures where | | | | Building a successful domain name flipping business, as |
| people purchase domain names with the intent of | | | | with any other business, therefore requires both |
| reselling ("flipping") them. In some cases, domain | | | | understanding your potential customers and knowing |
| names purchased for just a few dollars have been | | | | how to operate your business, including, for example, |
| resold for many thousands. | | | | knowledge of how best to market your names and |
| As with any other business, not everybody who | | | | how to transfer names (escrow procedures). You |
| enters the domain name flipping business will be | | | | are of course never going to learn these kinds of |
| successful. The least successful tend to be those to | | | | things from a short article, but what you can do is |
| who take a slapdash approach to the venture, who | | | | study the market and learn from guides written by |
| do not do their research, or who are over confident. | | | | those who have worked in this area, such as Brian |
| You can not simply purchase any random domain | | | | Pubrat's "Domain Cash Vault", or Edwin John's "How I |
| name, and hope to resell it for a hefty profit: | | | | Sell My Domain Names". |
| * Many domain names purchased for resale, simply | | | | |