Recently a reader of this Blog has asked me some basic questions about Domain Name Flipping. So I think that, I should write a separate post on these FAQs. I will tell you my own personal experience of Domain Flipping and How I do it. This will help you to understand the subject of Domain Flipping very well.

So Here we go….

1. Do I need to additionally buy some Web hosting service even if I don't plan to Develop the site  and just use it for flipping? There are many terms being cited such as Hosted, parked free what does the letter mean wrt to former?

- Well, No. Domain Name is different and web hosting is different. If you want to buy a Domain Name only for Flipping purpose and you don’t want to develop a website or a Blog under that Domain Name than you don’t have to buy Hosting. All your expense will be around US $ 10 and that’s the Fee of buying a Domain Name from GoDaddy.com

Well, Hosting means where your website is actually in this world? It means that on which server it is? There are lots of Server Companies in this world mainly in USA and European countries. Now take the Example of this Blog. The Domain name – myjourneytobillionaireclub.com is in my GoDaddy.com account. But the content of this Blog (2000+ Articles) is on the server of Google/Blogger. So my Host is Google/Blogger right now. Which is a FREE Host because my previous Blog was on Blogspot Platform. Now suppose if I want to change my Host in the future than I can buy a private host from GoDaddy or HostGator.com

Now suppose you buy a Domain Name from GoDaddy. So Your Domain Name will be reflected in your GoDaddy account right? Now after few months, your Domain Name will be indexed in the Google and start receiving some organic (Search Engine) traffic from Google and various other search engines. Almost every Domain Name in this world receives at least some amount of natural traffic.

So why not use this FREE organic web traffic to generate Revenue? And here comes the concept of Domain Name Parking. The Best Domain Parking Service is of Sedo.com

See the Example of few of my parked Domains on Sedo.com -

01) eFlippa.com
02) iFlippa.com
03) Investta.com
04) DomainFlippa.com
05) WebsiteFlippa.com
06) eBusinessFlipper.com
07) BusinessFlippa.com

All of the above are my parked domains on Sedo. Now you go to anyone of the Domain Name above and you will find lots of advertisements over these Domain. So whenever a visitor will click on these adds, I will get small amount of money. Of course, this will be a small Income but some Generic name and very old Domain Names are making XXX Dollars every month…!!!!!

2. Should we use the Company Name(as in register a company) so that we may use the option of Tax after expenses of corporation. :) to build my domains portfolio. And if yes.. then how do we register company. I dont have an office for that. Can you give me some pointers/links here.

Yes. Of course. Domain Name can be a Property/Asset of an Individual or a Company anything. If you use your company’s name than the Domain Names will be the Assets of your Company and whenever you sell your Domain Names, you can receive a cheque in name of your Company.

In fact, Go to WHO IS database and see the ownership of any of the above Domain Names. I am not the owner of these Domain Names but my Company, “PATEL EDUCATION PRIVATE LIMITED” is the owner of these properties.

In fact, this Blog is also an Asset/Property of my Company. And I am receiving Income of this Blog in the name of my Company and not my name for tax benefits.

Now, If you want to register a Company, than you need to consult Chartered Accountant. He will assist you in all the Legal matters. Making a Company is a fortnight company. Don’t worry about the office space. You can show your home as your Company’s office. In fact, right now my home is the Office of my Company.

You will require Rs.1 Lakh of Start-up Capital & Rs.15-20K of Company registering Expense. Rs.1 Lakh is not the expense. It will be shown as Company’s start-up Capital. And you will require Minimum 2 Board of Directors. You can’t register a Company with only one director. All the technical details will be declared to you by your CA.

Another thing I want to tell you that, when first time you consult your CA, he will say you that, Company structure is expensive rather than you should do it yourself. But don’t listen to him. In my case, when I asked my CA that, I want to register a Company for my Blog Business, He told me that, Why do you want to register a Company for a Blog? Today He is wrong and I am right. After all Blogging is a Business.

3. Some sites like godaddy.com are charging 10$ while name.com is charging $8 for the same and also providing free 1 Month hosting service. The sites you have in your portfolio, have you paid anything extra on them apart from the buying fee, as they get opened and also offer the link where we can place the offer to buy the domain from you. Where did you buy the site from?

- Always go for GoDaddy.com because it is the market leader. That’s it. Almost all the Domain Flippers around this world are using GoDaddy.com because the Domain transfer facility is very much easy and convenient over there.

Free 1 Month Hosting Service is nothing. After all you don’t need any hosting service if you have buy Domain Names only for Flipping. Hosting Service is for Blog & Website Flippers. Suppose if I want to Develop a Website and than if I want to sell it than and only I will require a Hosting.

No…. My Total Investment in my own Domain Portfolio is US $ 70 (Rs.3500. US $ 10 per Domain). There is NO OTHER EXPENSE. Of course, I had to use my mind a lot before selecting right domain names for me and that cost me 10 hours of time.

But wait…. US $ 10 per Domain name is the annual fee of maintaining the Domain Names on GoDaddy. So if I want to sell all of these 7 Domain Names after 10 years than I will have to invest US $  70 per year until I hold these Domain Names. But This Investment is worth….. Because After at least 3 years, you can’t even imagine that What will be the worth of your Domain Names.

In short, I have Never paid anything extra except the Domain Name Fees (US $ 10 per year) for the sites in my Portfolio. And yeah… I have bought just the Domain Names so I don’t need to buy any sites from anyone.

4. Should I use the Private WHO IS service while buying the domain.

- Private WHO IS Service will cost you few extra dollars. And if you are a Domain Name Flipper than What is the need of Private WHO IS? You can see the ownership of my all the Domain Names on WHO IS. And this Domain Name service is FREE of cost.

So I think no need to go for private WHO IS Service. Because FREE WHO IS Listing service is already available with GoDaddy.

5. We both do not use Credit Cards(rich dad advice), so how do you manage transactions online.. godaddy.com doesn't has Direct money transfer from Master/VISA Debit cards and Paypal also is asking for Credit cad info, moreover they chare for the services. I just use a single Axis Bank debit card provided by my company.

Well, You are right. We both don’t use Credit Cards. I had cut all of my Credit Cards in year 2006 and than never used it again. In fact, many people have asked me the same question in past many times. They asked that, if you never use credit cards than how can you manage to transact Online?

Well, I use HDFC Virtual Credit Card Service – NetSafe for this. Just go there and you will understand everything. I use my HDFC Bank Saving Account Balance/Debit Card to make Virtual Credit Cards on Net Safe and than I use them.

But still you don’t want to do this than the only alternative is to have a Credit Card. If you want to be a Serious Domain Flipper than I suggest you to buy a Credit Card that’s it….

And yeah…. Suppose in future, if you sell your Domain Name than you will have to receive that payment on Paypal or Escrow.com. So I think it will be better if you buy a Credit Card if you want to do this thing Seriously. Because it will be a lot more easy and convenient to transfer money with credit cards.

Just remember one thing while using Credit Cards – Never Invest with Borrowed Money. If you have money in your pocket than and only Invest that money via Credit Card for Buying Domain Names.

6. I was thinking is there good scope of flipping on indian domains such as .co.in or .in ? What's you view on this, as I do not much buyers for these domains.

Well, I have not researched the Indian Domain Flipping market yet But I am sure that It’s not Big. There are 1 Billion (100 Crore) people in India but not even 2% people are using the Internet. I am not saying that don’t go for Indian Domain Flipping (.co.in or .in).

But Honestly speaking, right now as a started you should only go for .com/International Domain Flipping because that market is too big and you will gain a confidence once you flip 4-5 domain names for a good profit.

It will take almost a Decade (May be I am wrong) to develop Indian Domain Flipping Market. So rather than waiting for this much time why not to start Domain Flipping in the Internet Market?

It is not that, I am not Optimistic on India. But this is the very early stage for Indian Domain Flipping and the market is not mature enough so instead I suggest you for .com Domain Flipping only.

I hope this much Information will be useful to you….!!!!