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sales A Look At The Bulk Sale on Flippa

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Over the last year as Flippa has gotten more entrenched in domain only sales, the bulk sale has become popular. Instead of just putting one domain for sale, sellers have looked to move a whole portfolio of related or unrelated domain names.

Traditionally this technique has been a tool of a place like Namepros or DNF. Forums have always made sense because there is the freedom to post what you like, Sedo or Afternic don't have the ability to promote the bulk sale. Newer aftermarkets like DomainNameSales.com also focus on the individual sale, and that makes sense for these types of venues.

Ebay would be the other place to see these types of bulk sales but there is nowhere near the focus on Ebay as there once was when it comes to domain names.

One of the reasons some sellers have told me they go the bulk route is to save on the fees at Flippa, with the leadership of Kevin Fink (@FlippaDomains) they have sought to bring down pricing and simplify it. Still the bulk sale seems to be a favorite for some Flippa sellers.

I never loved the bulk route on an unrelated portfolio of domain names. The problem as I see it is you have one name I like but you are not willing to sell individually, so I have to bid and have names that I don't want drive the price of the auction up. This happens in private sales as well, I have had clients I broker names for say they will only sell in bulk, it has cost business as I once had a guy with 29 .tv domains, these were all unrelated, so there was no network effect or "Hey they will help market your business in other locations"

29 is a lot of names, obviously that many names the seller wanted a good piece of change, I had a buyer for one name at $2,000, now the cost per domain broke down to like $800 as a package but the seller refused to break up the bulk lot. This made no sense to me since he was getting two and a half times his average price per name.

His thought was that the name helped bring up the overall quality of the portfolio so he did not want to break up the portfolio. He never sold any and eventually dropped more than half of the names in the bulk deal.

Now I believe you can find value in bulk portfolio sales, I remember an auction listing that I didn't look real hard at and some of the names were just reg fee fodder, but there was one name that I would have paid $150 for which is where the auction closed. So I could have given away some of the names for free or sold them off for $5 a piece and had the name I wanted for less than what I would have paid. So it can make sense to watch them, of course handling the push of 100 names might not be everyone's cup of tea.

So I have been looking at some Flippa bulk auctions, how they closed, average price per domain, etc...

URLE.com There was a portfolio of 283 domains with URLE.com as the featured domain in the listing headlines.

There were 116 bids and the auction closed at $5,605. This worked out to $19.80 per domain.This portfolio was diverse with a nice 4L.com like URLE.com, long tail domains, geo location of non popular tourist areas, one word names like uMagnet.com. You can click the link to see the portfolio.

So there were names that were not worth $19.80 in there and names that were worth xxx,or possibly more to the right end user, so to clear things out maybe this was the right move, but taking the good names and marketing them and dropping the bad so as to save money on the renewal fees may have been a better approach. Still they may have just wanted out and did not have the time so $5,605 is not bad

Sapphire.US This was a portfolio of 25 .us domain names. There were 65 bids and the auction closed at $855. So the price per name was $34.70. There were certainly some very nice .us domain names like Puppy.us, HDTV.us and Lady.us. Of course .US has not been sizzling in the sales department, I think the buyer can turn a profit on this portfolio buy as some names imo are certainly worth $750 to $1,500.

YLow.com This was a portfolio of 9 LLLL.com domains. There were 8 bids and the auction closed at $405. So the price per name was $45. These types of bulk auctions make sense to me in that they are all the same niche and you have buyers looking to buy 4L.com in bulk.

CheapComputers.org this was an auction that was com/net/org/info/co domain names. There were 87 names that sold for $156, there were 34 bids. This was a short auction only five days long. The average price per name was $1.79.

SongDownloads.net This was an aged .net EMD portfolio. 20 domains. The auction closed at $211 with 34 bids. The price per domain worked out to $10.55

So how do you feel when it comes to the bulk portfolio auction ? Do you like it as a buyer, a seller or neither ?
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
As a buyer, it depends on the names really. Buy a good domain and get 30 bad ones on the go can be annoying of course. But think the major problem is that it can be hard to find these auctions especially on Flippa *hint hint*. As a seller it can be from a psychological point of view nice to clean up the portfolio sometimes and for the weaker domains it is a useful way to sell but people need to find its way to the auction too.
 
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As a seller, one reason I like a bulk sale on Flippa.com is that if I have 30 domains to sell, it is a pain to deal individually with 30 different buyers. I have to get their transfer info, do 30 different transfers at 30 different times, answer questions from 30 buyers, keep track of which ones paid and which ones didn't, and leave feedback 30 different times. I also have to initially take the time to setup 30 different Flippa listings instead of 1.
 
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As a seller, one reason I like a bulk sale on Flippa.com is that if I have 30 domains to sell, it is a pain to deal individually with 30 different buyers. I have to get their transfer info, do 30 different transfers at 30 different times, answer questions from 30 buyers, keep track of which ones paid and which ones didn't, and leave feedback 30 different times. I also have to initially take the time to setup 30 different Flippa listings instead of 1.

Thanks for the input Eric, I know you have done quite a bit of selling there, best of luck with future sales.
 
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There is a lot of potential with bulk sales, but I don't think anyone, or any company, has gotten its implementation 100% right yet. I think more development needs to be spent on perfecting it before we really see its true value.

These reported average prices per domain will discourage many sellers from listing in bulk, but it's important to realize that the seller would have likely let many of the packaged domains expire, similar to the situation Raymond experienced, so their value to the seller was $0 and not the registration fee. In that light, the sellers were able to liquidate their portfolio and earn a small profit instead of losing money. That's a big win for anyone with a large portfolio.
 
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I had a great bulk lot sale for my AppDesignSchool.com auction. 90 Domains, $7,500.
1,400% ROI within 30 days. Not bad :)

Bulk auctions can be a very lucrative way to sell off a portfolio of names in the same niche. I have found that owning a bundle of domains in the same niche can be highly valuable to the right investor/enduser.
 
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Good post. I'm not sure if you factored in Flippa's Premium Listing Fees to the bottom line which would be a big reduction in what each domain sold for though.
 
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@Joseph Green good points

@KCGroup I am a fan of the related names style that has a lot more opportunity imo.

@Tom I figured it would be easiest to just do it before fees as each auction may have had different promotional fees, but you are right that lowers the numbers.
 
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Good post. I'm not sure if you factored in Flippa's Premium Listing Fees to the bottom line which would be a big reduction in what each domain sold for though.

I grossed $7,500 and net $5901 after fees and acquisition costs. Not bad for a few days of work. The fees are totally worth it if you have a bulk lot that needs the exposure.
 
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As a buyer, it depends on the names really. Buy a good domain and get 30 bad ones on the go can be annoying of course. But think the major problem is that it can be hard to find these auctions especially on Flippa *hint hint*. As a seller it can be from a psychological point of view nice to clean up the portfolio sometimes and for the weaker domains it is a useful way to sell but people need to find its way to the auction too.

Noted :)

At the very least, we need to highlight the auction titles and/or add a badge that suggest there is more than one domain up for sale. We're hoping to have this implemented soon.
 
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Noted :)

At the very least, we need to highlight the auction titles and/or add a badge that suggest there is more than one domain up for sale. We're hoping to have this implemented soon.
are the black friday promo upgrades applied yet?
 
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I think bulk sales are fine as long as there is a theme - for example I have been collecting .com domains with the same 3-letter prefix. If I decide to sell them, as a bundle would make sense.

They are also fine if every domain is worth at least $xxx (not just in the mind of the seller) and they were genuinely going for wholesale prices.

I bought in bulk once, about 20 domains for low $xxx. Let 17 lapse, sold two for $xxxx and have one left. So I certainly look at such auctions.
 
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Good post. I'm not sure if you factored in Flippa's Premium Listing Fees to the bottom line which would be a big reduction in what each domain sold for though.

absolutely...
 
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I think bulk sales are fine as long as there is a theme - for example I have been collecting .com domains with the same 3-letter prefix. If I decide to sell them, as a bundle would make sense.

They are also fine if every domain is worth at least $xxx (not just in the mind of the seller) and they were genuinely going for wholesale prices.

I bought in bulk once, about 20 domains for low $xxx. Let 17 lapse, sold two for $xxxx and have one left. So I certainly look at such auctions.

I love these lots for the same reason.

But, regarding "themed lots," I do have mixed feelings about whether they are more successful.

Many sellers approach me asking to sell themed-lots ...and aside from KC Group's "app"-related lot he mentioned above, I don't see these doing particularly well.

Raymond's examples above, aside from the LLLL lot and .US lot (both which aren't necessarily themes in the way I mean), I consider to be more versatile acquisitions. Assortments, if you will.

I think the more assorted approach works fine, provided there are gems that multiple buyers spot, to drive up interest among more than one buyer who would fire sale or drop the junk and hold the stuff s/he's interested in.

And I guess a better way to define theme, at least in the way I am thinking of it, is when someone approaches me to sell 500 domains that all begin with "city" -- i.e., CityTires.com, CityBuilding.com, CityHospital.com ...etc.

Those don't do so well :)
(you reallllly have to get lucky that you'll find that -- preferably more than one -- person who jumps at the chance to own such a refined niche...)
 
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And I guess a better way to define theme, at least in the way I am thinking of it, is when someone approaches me to sell 500 domains that all begin with "city" -- i.e., CityTires.com, CityBuilding.com, CityHospital.com ...etc.

I stay away from these. From my perspective, portfolios and bulk purchases are worth more if they are strategically diversified.

"Don't put all your eggs in one basket."
 
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I stay away from these. From my perspective, portfolios and bulk purchases are worth more if they are strategically diversified.

"Don't put all your eggs in one basket."
You've got a valid point that many should look into.

However, there are individuals who pick a niche which they know very well, have sold in the past or are developing them out for a higher return. These are generally high search volume geo generics which also have high competition and CPC.

For instance, if I were into tourism, I wouldn't hesitate to acquire a portfolio of 200 domains with the top 100 tourist destinations in the form of CityHotels.com and CountryHotels.com knowing the commissions. Having sampled the top 5 (10 sites), all but 1 (Italy) are developed and monetized somehow. Quite simply, this niche is saturated and it must be more specific with long tails which are still searched or typed in, available or a bargain.

An example domain I own, which follows this pattern, cannot get anymore precise than this: hotelsincitynearfamoustouristsite.com. It is one long tail, specific area with a limited amount of hotels. Though, it gets 1300 searches a month, has high competition and a suggested bid of $3.76. This particular domain gets 5-10 visitors per month being parked. Needless to say, it pays for itself and then some. Having mentioned that, there is still luck in hand registrations within this niche, if you know what to look for.

In some manner, you do need to diversify your portfolio at first for a cushion. Nevertheless, some establish a nook which is very comfortable for them to begin with as well.

I personally diversify as well as register 1-25 of the "best" trending domains after being surpassed by a couple that blew up like cloud and BTC. Then again, I'm not going hesitate buying portfolios for $$-$$$$ if I see only 1 out of N domains which I see a perceived value greater than the entire lot whether it be in one niche or diversified.
 
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Does anyone know how you can alter the title of your auction from just being the name of one of the domains in your lot "Example.com" to something like "Portfolio of 20 Generic Domains"

Here's an example of someone doing it (not mine):

https://flippa.com/7016959-portfolio-of-34-domains
 
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