Everybody knows “domain flipping”. Basically, the term describes purchasing a domain name (or website) and quickly reselling (or “flipping”) it for profit.
This has both advantages and disadvantages:
- You can make much more than domain brokers who rarely get a sales commission over 20%. Here you have no other limit than your ability to successfully sell it for more than you purchased it for and earn the difference.
- You need to have a significant cash flow in order to purchase the domain to resell.
- It’s risky as you can never be sure you will be successful at reselling it.
It’s called: OPTIONING!
I approach the seller and I negotiate a sales price with which he is comfortable to sell AND for which my chances of making a profit are good.
Therefore nothing stops me from trying to put a purchase option on this domain, telling the seller: “I am willing to pay you a fee to get the exclusive right to acquire your domain within a specified time period at the set price.”
What does it mean?
Simply: If I find a buyer within the specified term, then I can pay the seller and resell the domain to the new buyer with no risk.
And if I have been unfortunate and did not found a buyer, then the only money I lost was the option fee. But that fee is insignificant compared to the full sales price.
For the seller, there are only advantages:
- Improve sale chances.
- Sell domains faster at the agreed price.
- Continue having full use of the domain.
- Make money either way! Earn the option fee even if the sale doesn’t happen.
And for you the flipper, all of the disadvantages mentioned above simply vanished. Yeah!
But wait… is there a way for the flipper to obligate the seller to respect the option deal?
No… this is why we have just created a new service at eCOP.com to secure optioning at 100%
PS: Special Thanks to Michael Norwood to stimulate me, to George Kirikos for his very valuable feedback, Michael Berkens for selling me the domain name optioning.com at a special price. And thanks to few domainers who had the patience to listen my service idea when it was still very confused: Teri Plummer, Dennis Sourvanos, Mike Curving…