Problem With Flipping New Domains

Just as there are homes we purchase with the goal of flipping them for a profit, there are websites you'll build to flip as well. In fact, there are some sites you'll want to setup just so you can sell them down the road.
That's what happened to me at least... Just as a real estate flipper would slap on a new coat of paint and
make repairs to the home they want to sell, my sites needed the same kind of TLC to make them more attractive.
...... after the guy I hired had completed renovating the site, which was bought more than 2 years ago, I put it up for sale on a popular website marketplace. Even though the site didn't have much traffic and hadn't made a dime in Adsense or affiliate income over the last 2 years, it still sold for 5 times the amount I paid for it.
Not too bad, right?

After the first flipped site was sold with good profits, I decided to buy, renovate, and flip new domains
instead.
Big mistake!!
Although I didn't know it at the time, the process of buying and flipping newly registered domains is an entirely different animal compared to flipping established sites.

After a few weeks flipping new domains, and only seeing less than half the returns I enjoyed earlier, I got confused and tries to figure out with the hired guy what was happening.
As you can imagine, we'd developed a pretty effective system for renovating and selling these sites... so the formula was already battle tested.... they should be sold quickly, with multiple bidders fighting for it but not otherwise. What's happening??

Flipping "Virtual Real Estate"

If you live in the United States or Canada, or have access to the Home and Garden TV networks that air in those countries, you've probably watched one of those house flipping shows before.
One of the most popular, Flip This House on the A&E channel, lets you watch as real estate investors buy, renovate, and flip homes for a profit.

The idea is simple...
 1. Purchase a home in good area.
 2. Renovate the home to increase its value.
 3. Sell the home for a profit.

Over the years, real estate investors like the ones featured on these shows have made millions of dollars finding distressed properties, fixing them up, and selling them at a profit. ... and they aren't the only ones.
If you've been online for even a short time, you've likely heard the term "virtual real estate" before.
Just like a portfolio of real estate assets, your virtual real estate empire is a portfolio of virtual assets you own and manage to generate profits. Depending on your goals and business strategy, the Virtual Real Estate assets
you build can be setup to generate long-term income or fast profits. 

Similar to the real estate strategy of "buying and holding" properties to generate rental income, you can setup some of your VRE websites to generate residual income streams month after month.