Flipping domain names can be very profitable. You can make money by selling the domain name itself or by creating a website using the domain name and selling the name and the developed site as a package. Usually, the completed, developed website will sell for more money.
In order to generate the highest returns, one of the most critical factors is finding a domain name that is desirable – one that is in demand or is attractive to the marketplace.
I am shocked when someone contacts me with a domain name that contains keywords that are not being advertised for by Google ad words advertisers (worse yet, are those domain names that contain no keywords at all). Yes, it's true, that some "brandable" domain names can bring in attractive returns. Yet, you'll stack the odds in your favor if you take the following steps:
1. Identify a hot trend. You can do this using tools at a number of search engines.
2. Locate keywords used in that trend. If the trend for example is "online income" you would do a keyword search looking for search terms and keywords that contain the words "online income."
3. Check your keywords for AdSense ads. Once you've located some attractive keyword-based domain names, plug those keyword keywords into Google and determine if there are ad words advertisers bidding for those search terms. The more the advertisers, the higher the likelihood your domain name or developed website will be in demand. More demand means more profit to you.
By using some common sense in your domain name search you'll stack the odds in your favor in finding attractive domain names to flip for a profit.