Making money by re-selling expired domains is not difficult with the proper information.
Expired domains are website names that have been confiscated by the domain registrar from which they were acquired due to the non-payment of fees. If you visit a domain registrar's website, you can find listings of domains under them that have been repossessed. Because some of these names are extremely well primed as far as search engine optimization (SEO) is concerned you can easily make money buying and reselling them.
How can you tell? Make a list of the expired domains that sound like they could make money. They should be commonly spoken and written phrases referring to a particular topic. Then you should get a keyword search tool like Google's and test the popularity of those words on your list. The popular ones will have high ratings in the local and/or global columns. If you find figures in the millions for a particular name, that is a very good candidate for domain flipping or for reselling to other people. The reason is that since the keywords on which the domain name was based on are extremely popular phrases and very often used in searches, that website can easily be located by those interested in the topic. This will give the owner plenty of exposure and occasions for making money.
Another factor that you should watch out for when making money from good expired domains is the existing traffic that it was getting and the number of back links it had from other sites before it expired. These are some other pluses that can boost the rating of a website and, if good enough, can really make money for your prospective buyers.
But you shouldn't start re-selling the domains immediately. To get a better idea of the actual value of a name, make money on it first by parking it with the registrar or developing and running it for a while. You should try making money from the site prior to offering it up for sale. The general rule is that keyword rich, traffic intensive and well back-linked domains should be more expensive than the others. And these are the ones you should be getting for the purpose of flipping or re-selling them.
The manner in which you offer your domains to the public will determine how quickly you make money on them. Select a site where you can catalog them for auction. In this way, you will be getting the biggest return on your investment. If you intend to make flipping domains a regular business, it might be good to construct your own website in which you can catalog all the good domain names that you have purchased. You may choose to go for outright sale or for auction. Both ways of for making money have their advantages and disadvantages. But for clean and fast profit, outright sale is more recommendable.
In order to maximize the profit you stand to make you should purchase expired domain names from registrar's that offer them for a reasonable price.