Whenever I’m at a party or meeting new friends and they ask me how I make my money, one of their first questions is always. Is that legal? Quickly followed by. That sounds great. How do I get started doing that? This is one of the main reasons I decided to right the guide to get started flipping domains.
Yes, it most definitely is!
Buying a domain name and then selling it on for a profit is perfectly legal. A domain name is a virtual asset that has a value.
Be aware of trademark laws
You need to be very aware trademarks when flipping domains. Domain names are subject to trademark laws and you need to be careful not to buy a domain name that is a trademarked term, phrase or features a trademark within in. If you are in any doubt as to whether there is a trademark on a domain you can search the UK trademark database on the gov.uk site here.
If it’s too good to be true. It probably is.
Be aware of Nominet rules on “Abusive registrations”
Nominet is the body that oversees and issues UK domain names (.co.uk. .uk, org.uk. cymru, wales etc.). They have a set of guidelines for what consists an abusive registration. e.g. a domain registration that is an abuse of the system or another company or individuals rights to the domain. They include the following key points:
- The domain name was registered with the primary purpose of selling or renting it specifically to the Complainant (or a competitor) for more than the Respondent paid for it
- The domain name was registered with the primary purpose of stopping the Complainant using it
- The domain name was registered with the primary purpose of disrupting the Complainant’s business
- The domain name has been used to confuse internet users
As domainers or flippers, the main point we need to consider is “selling or renting it specifically to the Complainant (or a competitor) for more than the Respondent paid for it” an example of this would be spotting that Adidas.co.uk had become available. You register the domain and then try to sell it to Adidas for £200 million. I completely agree with Nominet on it being an abuse of the domain registration a this type of selling is more like extortion that domain flipping.