The risk of flipping domains is that you’ll make a bad investment that doesn’t pay off. There’s no guarantee a buyer will want to purchase your domain name for a higher price than you paid for it — or at all. By evaluating a domain’s potential value before you buy it, as well as timing your sales appropriately, you could reduce your risks and increase your chances of making a profit. You could also reduce the risk of loss by not spending any more money than you’re prepared to lose. As mentioned, you can buy a domain for less than $10 per year, so as a beginner you could start small and scale over time as you gain experience.