Short answerDomain flipping costs are the purchase price, yearly renewals for every name you hold, marketplace commissions on each sale, and escrow or payment fees. A portfolio is profitable only if yearly sales revenue after commissions is higher than purchases plus renewals for all names.
Updated 2026-10-14 · How to Trade Domains guide
A simple profit formula
Yearly profit = (sales revenue − commissions − payment fees) − (new purchases + renewals for every name held).
A worked example (illustrative numbers)
| Item | Amount |
|---|---|
| Names held | 100 |
| Renewal per name per year | $12 → $1,200 |
| Names sold this year (2%) | 2 at $1,500 each → $3,000 |
| Commission (example 20%) | −$600 |
| Profit before new purchases | $3,000 − $600 − $1,200 = $1,200 |
If only one name sells, the same portfolio loses money. That is why traders drop names that are unlikely to sell rather than renewing everything forever.
How do I cut holding costs?
- Consolidate at a registrar with fair renewal prices.
- Review every name before it renews; drop the weakest.
- Price names to sell within a year or two.
Find your first flip
Domain Dumpster Dive, run by the same team as this guide, lists below-market names and bundles, has a free valuation tool, and lets you list your own names for free.
Browse below-market namesFree valuation toolFrequently asked questions
How much does it cost to hold a domain?
Mostly the yearly renewal, often around $10 to $20 for a .com at many registrars, and more for some extensions or premium names.
What percentage of domains sell each year?
A common investor rule of thumb is around 1% to 2% of a typical portfolio per year; strong, well-priced names sell more often.
Should I renew domains that haven't sold?
Only if you still expect them to sell for more than several years of renewals. Otherwise let the weakest names expire.