$5,000 Flipping Domains [Passive Income - Beginner Guide]

One way to make passive income online is by flipping domains. Flipping domains is like participating in online real estate. The properties consist in the domains, and your goal is to purchase the best properties, and to hold onto them until you find a buyer.

What is domain flipping? Domain flipping consists in buying domain names, parking them and then selling them later on at a higher price. Many people are making thousands of dollars by simply registering domain names for $1 a piece and then selling them for $5,000+ upwards.

Below, we go into detail on how to make passive income by flipping domains, therefore buying domain names, parking and then selling them to the highest bidder. Learn about some of the risks, difficulty level, seasonality and more when flipping domain names as a beginner.

Quick Introduction to Buying & Selling Domain Names for Beginners

Domain flipping can be a highly profitable business. Many people have managed, from the comfort of their homes, to make over $100k in less than a year. What you need to do in order to make money is to buy domain names, park them for a period of time and then sell them to people willing to pay for them.

This passive income method involves little time and yields very high returns for the best domains. The ROI you can produce is exceptional, and non-seasonal, meaning that you can purchase and resell domains all-year round.

Even if this method is very easy to implement, it comes at a very high risk. If you are looking for a risky passive method of making money, but one that is easy to implement, yields high profit, takes little time to implement and can be performed every day of the year, then you need to be in it for the long haul.

How Buying & Selling Domain Names Works

Buying and selling domains is similar to making money by buying and selling real estate in the real world. You are buying a property in a good location and a low price, and after a few years you are re-selling it to a buyer willing to pay you 20-30%+ more. Buying domain names is very cheap. You can start off with just $100 a month for about 10 domain names (.com’s usually cost about 10$ each). However, your success depends on the domain names you choose, the niche you’re in, finding motivated buyers, looking for trends, and the list goes on.

The domain names market is huge. Thousands of domains are registered on a daily basis. For example, when new businesses are launched they look for domain names for their company. This is one clientele for people who are willing to sell them for a higher price. That’s where you come in. You are the person new businesses will come to if you purchased the domain before them.

Let’s take a theoretical example. Let’s say that you bought 2 great domains, for example pizzanewyork.com and pizzanewyork.net. Pizza shops opening up in New York may be highly motivated to buy these domains, because they are already SEO-optimized for searchable keywords like “pizza shop” and “pizza shop New York”. Imagine if you bought these domains for just $10 a couple years ago, and you are now selling them for over $1,000.

If you want to make money with domain flipping, you need to remember that this method won’t make you rich overnight. The initial setup is a very active process that will take up many hours of your time, from research to selling. It takes time to get better at it, plus you also need a little bit of luck to land great offers. Without further ado, let’s take a closer look at the practical steps on how to make money online registering domain names, parking them and then re-selling them at a higher price to the right bidder.

1. Establish your Budget

First of all, you need to know for sure how much money you are willing to invest, because you will have to invest money upfront to purchase and park a couple domains. Come up with a starting budget you are comfortable with. At this point, we recommend a budget of around $100-$200 to be able to purchase 10 to 20 domains around $10/year each. Once you selling and you can reinvest and purchase more.

2. Find a Profitable Niche

In order to make money with domain flipping, it is imperative to choose a profitable niche. We gave an example with a pizza shop in New York above, but that’s nothing more than an example. The truth is that there are many other more profitable niches. You need to go deeper and choose potential business names and more.

3. Narrow your Focus

In addition to finding a niche to focus on, you need to choose the right domain name extensions. Do some research and try to find extensions that are popular in 2019. It is recommended to start out with .com’s as these are something everyone recognises. However, there are other extensions to choose from including newer ones like .store and .app.

4. Find Great Names That Are Searchable

The key to be successful in buying domain names, parking them and re-selling them is to find the right names to focus on. Think of it this way. You are buying a valuable name that will prove to be a great asset to a future buyer. Think ahead of the curve and try to determine what people will want in the next few months or years.

When searching for names, you should start with keyword groups. These are words people actually use to search for things. Our own name is a good example of this – Beginners Passive Income. If you are looking to learn more about making passive income online, and you are a beginner, you can imagine our site strives to serve you just that – passive income ideas and guides for beginners.

Other types of names you can look for are potential business names or events. A good example is the FIFA 2022 in Qatar. That event, which will be held between November 21 and December 18, has a huge potential for domain names. Lastly, geographic names that relate to cities or countries can also be sold to people who want to start their own local events, businesses or sites.

5. Think Ahead on Pricing

Think of who would buy your domain names. How much profit can they get out of it? How much money will they have to spend on advertising the domain? Is it a small business domain name or a large business? And the list goes on. If you can answer all these questions, then you can easily sell your domains for very high prices. When evaluating the resale value, do not forget to take the SEO value of a domain into consideration.

6. Purchase the Domain Names

To find available domain names, we recommend Namecheap. It’s a service we use and love for their user-friendly back-end, two-factor authentication (extra security level) and excellent support.

  1. To buy a domain name
  2. Go to NameCheap.com (this link will send you to our Resource page for even more info).
  3. Search for the domain name you would like to purchase (enter the extensions like .com for more precise search results)
  4. If the domain name is available purchase it
  5. Leave it in your account and activate auto-renew if you would like to keep it for more than a year

Take note that domain names are renewed yearly, so you will be paying for them every year.

7. Sell Them

NameCheap makes it super easy to resell domains right within your control panel. Just indicate that the domain is for sale and it will be available to purchase for anyone searching for it. NameCheap will make the sales and bidding process seamless.

How Passive is Flipping Domains?

Domain flipping has a huge potential of becoming passive. However, this business opportunity will never be 100% passive. You’ll always have to spend time buying new domains, advertising them and finding buyers.

Startup Costs

This business is very affordable. You can start small, with just an investment of around $100 you can already get about 10 domain names. Once you get a few sales, you can reinvest more money. If you manage to land a good sale, you can make substantial income.


Running this business is pretty difficult, especially in the beginning. You might need to spend hours looking online, educating yourself and reading how to articles. You may find excellent information on YouTube on how certain people have made a lot of money flipping domains. Finding excellent domain names is a skill that takes time to learn.


Fortunately, to buy domain names and park them and sell them afterwards, you only need to invest much time. After the initial learning and research period, it takes only a few hours a day to manage your business. You can easily have a full time job and still use this passive income method to make ends meet.


This business is very risky. You need to be aware that you might fail to sell certain domains. In terms of liquidity, you might have to wait years until you make a profitable sale for certain domains. You may never sell some domains and lose the money you invested to purchase them.


Selling domain names can be done all-year round. That’s a great benefit of this passive income method.

ROI (Return On Investment)

In terms of ROI, this passive method beats anything else on the market. You can easily get a 1,000x ROI for a single transaction. You can buy a domain for just $10 and then resell it after 2 years for over $10k. Some users purchased domains for just $10 and sold them for over $1 million.

The potential to make money buying domain names and then reselling them is definitely there. You just need to assume the risks and overcome the learning curve related to buying domain names and reselling them.

Related Questions

How much money can you make flipping domains? Some sites claim you can produce $100,000 (source) by flipping domains, however, most domain flippers earn between $500 and $50,000+ depending on the domain name and the demand for it (source), others have made millions (source).

Disclaimer: The information contained on this Website and the resources available for download through this website are for educational and informational purposes only and are not intended as, and shall not be understood or construed as, professional advice. Results mentioned are not guaranteed. Starting a business or an online business always involves risk and demands a lot of time. The success of your (internet) business depends on your hard work and skill. We do not guarantee any business or income. It is also imperative that you consult a tax and/or legal professional in your area to ensure you comply with local, or nation-wide rules and regulations that pertain to your area before you join a peer-to-peer platform or start a business with the purpose of making money. Consult our Disclaimers page for more information.

Beginners Passive Income

Passive income for beginners. Ideas, guides, motivation, inspiration and everything in between.

Affiliate Disclaimer

Beginnerspassiveincome.com is a participant in affiliate programs designed to provide a means for sites to earn advertising fees by advertising and linking to their sites and is compensated for referring traffic and business to these companies. There are no extra costs to you if you sign up to any service through an affiliate link. Please refer to our Disclaimers page for more information.

Content Disclaimer

This blog does not provide legal, financial or tax advice and does not create an attorney-client or client relationship. We are not trained or certified financial advisors, and we are not your financial advisor. For legal, financial or tax advice, please contact a qualified professional in your area.We do not guarantee any business or income. Consult our Disclaimers page for more information.

Try Tidio Chatbots
5 Step Passive Income Blueprint
Our passive income blueprint provides five steps to financial freedom. From learning what passive income is, setting up your passive income goals, choosing your passive income idea, having what it takes to achieve your financial dreams, and then give back.
Outsource The Work
Plan Your Passive Income Success
passive income journal tracking

Plan your success to financial freedom over 24 months. Commit. Organize. Track. Grow. Build and execute your plan to replace your current active income with passive income.

Related Articles

Passive Income

18 Passive Income Ideas You Can Start in Canada

You can earn passive income in Canada from well-executed passive income ideas like blogging, podcasting, chatbots, eCommerce, niche sites, dropshipping, or print-on-demand for example. It is important to choose an idea you are passionate about or interested in learning because it takes skill, patience, dedication, and hard work in order to succeed.

Read More »
Passive Income

14 Passive Income Ideas You Can Start in India

Some passive income ideas you can carry out in India include eCommerce, gaming, podcasting, monetized chatbots, niche sites, dropshipping, and blogging. You can also participate in side-hustles like food delivery apps, flipping items on craigslist, flipping domains, flipping items on eBay and more. Learn more here.

Read More »
Passive Income

12 Passive Income Ideas You Can Start in The USA

Some excellent passive income ideas that can be done in the USA include blogging, podcasting, monetizing chatbots, eCommerce, monetized niche sites, dropshipping, print-on-demand, and more. You can also engage in side-hustles like food delivery apps, or peer-to-peer rentals. It all depends on what you are able to do and passionate about.

Read More »
Passive Income

10 Passive Income Ideas Without Investments

Not every passive income idea requires a large financial investment. Some passive income ideas do not require any investment and are fairly easy to start. Some can be done online such as gaming, YouTubing or starting a blog, while others may include AirBnB, renting out your things, ridesharing, or advertising with your car. Learn more here.

Read More »

6 Passive Income Streams for Chefs

There are many passive income-earning opportunities for chefs. As long as you are passionate and knowledgeable in something (in the culinary world or otherwise), you can turn it into a passive income source. Passive income sources that may be ideal for chefs include blogging, podcasting, creating niche sites, selling eBooks, affiliate marketing and more. Learn more here.

Read More »
Passive Income

What Does Passive Income Mean?

Passive income is income that is earned without trading time for money on an hourly or per-project basis. Not trading time for money means income is not bound to a fixed rate or a 24h/day limit, thus lifting many limitations of active income. Passive income can, however, require a very large financial and/or time investment to set up. Learn more here.

Read More »

How To Make An eBook [Video Guide]

You can easily make an eBook for free. You only need a Google account, a computer, and a stable internet connection and eBook content. Using Google Docs, you can create and format an eBook fairly quickly and easily. Learn more here.

Read More »

Audiobook Narration For Beginners

There are many ways you can improve your narration skills. Some factors that affect narration include your posture, vocal cord exercises, intonation, your interest in the content and what you consume before narrating. With the right posture, healthy diet, and preparation, it is possible to produce high-quality audiobook content. Learn more here.

Read More »
Side Hustles

17 Online Passive Income Side Hustles

There are tons of side hustle ideas you can undertake outside of your normal schedule or day job to earn passive income. Making passive income from a side hustle is not something new. Passive income ideas such as eBooks, eCommerce, podcasts, dropshipping, and stock photography can make for excellent side hustles. Most of these ideas are easy to start even for beginners. Learn more here.

Read More »

9 Passive Income Ideas for Illustrators

As an illustrator, you can earn a passive income by sharing a passion via a passive income idea. Some ideas include print-on-demand, blogging, affiliate marketing, chatbots, podcasting or selling eBooks. Your choice depends on your interests and what you would like to share. You can combine ideas to create multiple streams of passive income. Learn more.

Read More »

8 Passive Income Ideas for Real Estate Agents

There are numerous passive income-earning opportunities for real estate agents. Some streams include blogging, podcasting, creating niche sites, chatbots, selling eBooks, affiliate marketing, YouTubing and many more. With hard work, dedication, and skill, you can turn your passion into a passive income stream. Learn more here.

Read More »

How to Make Money Selling Chatbots

You can make an excellent income by creating and selling chatbots. One way of monetizing your blog is by selling it to a company/business or offering it to them for free, and earning a commission on sales from it. Many businesses are willing to buy chatbots to automate parts of their sales, support, and marketing processes. Learn more here.

Read More »

9 Ways to Make Money From a Chatbot​

You can make money from chatbots in a variety of ways. You can monetize your chatbot with affiliate marketing, eCommerce, advertising, lead generation, surveys, landing page, and sales funnel processes. You could also sell your chatbot to businesses to reduce customer support overhead. Learn more here!

Read More »

How to Sell eBooks on Your Own Website

It is possible for you to create and sell eBooks on your website. eCommerce tools such as Ecwid make it super easy to sell products online. For instance, if you run a niche site on educational content you can create and sell eBooks about your niche topics and earn income through your online store. Learn more here.

Read More »

6 Passive Income Streams for Lawyers

There are numerous passive income-earning opportunities for lawyers. So long as you are passionate or knowledgeable in something, you can turn it into a passive income source. Some easy streams you can earn passive income from include blogging, podcasting, creating niche sites, selling eBooks, affiliate marketing and many more. Learn more here.

Read More »

10 Ways to Create Multiple Streams of Passive Income

Yes, you can create multiple streams of passive income by combining different passive income ideas. Online, you could combine affiliate marketing, blogging, YouTube, and Ad placement, and monetized chatbots. If you were running passive income businesses (brick and mortar) you could combine a laundromat with an ATM, self-service vending machines and more. Learn more here!

Read More »

8 Passive Income Ideas for Massage Therapists

There are numerous passive income-earning opportunities for massage therapists. Some streams include blogging, podcasting, creating niche sites, Chatbots, selling eBooks, affiliate marketing and many more. If you are passionate about massage therapy, you can build a passive income stream to turn it into a passive income source. Learn more here.

Read More »