Dynadot

information Liquidate Domain Names Or Not, That Is The Question

NameSilo
Perhaps you have decided to reduce the size of your domain portfolio and retain only the better names. Or you are scaling down, as you have less interest or time to devote to domain investing. Possibly you simply have less confidence in certain sectors or niches, and want to get rid of names in those sectors.

A key question is whether to simply let domain names expire, or should you try to liquidate them to recover some or all of your invested funds.

Pro and Con

Much of the time it makes sense to at least try to recover the funds you have invested in the names. I mean some money is better than none, right? Maybe. But it will take time to try to liquidate names, and is it really worth the effort for the amount that you are likely to get? I look at some typical numbers in the following section.

TonyNames (@blogspotter), chooses not to liquidate names he plans to drop. He makes the point that sometimes names will sell retail during those last few weeks when you would be liquidating the name, and those occasional retail sales make up for what you would have made liquidating.

Here is an example I made up to investigate that point. Let’s say you have a name listed for $3500 retail and you estimate the annual retail sell-through rate (STR) at 1%. If the time that the name is off retail listings for wholesale liquidation is 30 days, that means that the lost retail opportunity is valued at $3500*0.01*(30/365), or $2.88.
Image-Liquidate-Or-Not.png

Looking at the other side of the ledger, if we estimate that if the name sells wholesale it might fetch $40, and that the chance of that happening during the 30 day period is 10%. In this case it appears to be marginally worth selling wholesale, but that will evaporate if we consider the worth of our time, a topic covered in the next section.

Value For Your Time

Your time is worth money. Let’s say you are liquidating through an auction here at NamePros. There is time required to take the domain name down from retail marketplaces, preparing the auction listing to include the required and perhaps some optional information, managing the auction, and collecting payment, transferring the name, providing buyer feedback, etc.

I summarize this with some numbers in the following table. I estimated it would take 4 minutes total to go to several marketplaces and take down the retail listings, and about 8 minutes to start the auction thread. If you do a lot of auctions, and use a template, this can be less.

After a successful auction, you need to interact with the buyer, arrange for transfer of the name, close the auction thread, leave feedback, etc. I estimate this might require 10 minutes in total. Sure, it is sometimes less, but occasionally it takes longer if there is some issue with payment or transfer.
Image-Hour-Costs-Liquidation.png

The typical line in the table suggests that it might add to 22 minutes total, and, if I value my time at $15/hr, that would be $5.50. I also included a minimum estimate, but it still would be $2.50 per name, and a maximum model, that comes in at $7.75.

But those figures are optimistic, as it is possible the name will not sell at all. While the time required will be less, it won’t be zero. At the same time, some of this time will need to be spent whether you liquidate or simply let the name expire.

Bottom line as I see it, if you only expect to make $5 to $10 from a sale, it is probably not worth the time to try to liquidate. However, if you have a quality name that is probably liquid and would sell for $50 to $200 or more, it is worth the effort.

Of course, if you don’t place a dollar figure on your time, and enjoy interacting with the community and prefer to see the name going to another investor, it makes total sense to liquidate, even if you only expect a few dollars per name.

It can also make sense if you are very efficient in your liquidation listing, for example listing many names at the same price and with the same conditions in a single listing.

Ways To Liquidate On NamePros

You might consider various options for liquidating names here on NamePros.
  • Bargain Bin: If willing to sell the name for $20 or less, an easy way to list is in the Bargain Bin. You can list multiple names together as a package, but keep in mind that package deals must also total $20 or less.
  • Fixed Price: If you are selling names above the bargain bin limit, or want to put a package of names together that will be higher than the limit, your best choice is Fixed Price.
  • Auction: Perhaps most visibility will be found through an auction. Even for names that will end up selling for more, generally you need to start low, often $1, to get the auction rolling. That means there is some risk that your name will sell for a very low price. Make sure you have included precise answers to the required elements such as payment method(s), starting bid, increment, and auction ending.
The NamePros Blog covered some time ago Optimizing NamePros Auctions. Things like effective titles will help your auction get traction, and using bumps or a link in your signature to help get your auctions noticed.

Note that while the majority of auctions are regular bid up for single names, you have considerable flexibility in NamePros auctions format. The NamePros Blog article Optimizing NamePros Auctions gives you some suggestions.

No matter the format you use to sell your names, make sure you have read the Rules of NamePros and are in compliance.

Other Ways To Liquidate

There are options for domain name liquidation outside of NamePros. Here are some of them:
  • The Retail Marketplaces: One method that does not take much time is to simply reduce the price to liquidation level where you currently have the name listed. Dan have a minimum listing price of $99. Afternic do not have a specific minimum listing price, as far as I know, but there is a minimum commission of $15. I believe that Sedo still have their no minimum fee in place.
  • The Registrar: Many registrars have associated marketplaces, and this can be a handy way to try to liquidate names. Commissions are often around the 10% level, but check the details for your registrar. Namecheap allow listings as low as $5, and at Dynadot you can list for as little as $1. Sav limits fixed-price listings to $10 and up, although auctions always start at $1. Porkbun listings need to be at least $20. One advantage of selling at your registrar marketplace is that, for names registered there, it is easy when the name sells as it is automatically transferred to the buyer. Sav, and now Dynadot, allow you to list names registered elsewhere – the buyer will pay the transfer fee, in addition to the cost of the domain name. Sav, Dynadot, GoDaddy and NameSilo, among others, allow you to use auction format if you wish. Sav have by far the lowest commissions of the registrar marketplaces.
  • DNWE: The Domain Name Wholesale Exchange, DNWE, is intended for selling names wholesale to other investors. You need to be approved as a domain investor to access the marketplace. DNWE no longer uses a subscription model, and anyone can list up to 12 names per day, with listings staying active for 30 days, or until sold. Sales are closed through Dan, and the seller pays a 12% commission. There is no listing fee. The minimum price is $99. DNWE also offer a Dutch Auction format, where the price counts down, but with the same minimum. A very few names are selected as curated names, and those names get a lot more attention. Typically their marketplace recently has about 5000 names for sale at any time. Because it is a closed marketplace not visible to retail buyers, one can keep your names listed retail while they are liquidated on DNWE. It is easy to relist once the 30 day listing expires.
  • SquadHelp Wholesale: Those with SquadHelp accounts have access to the SquadHelp wholesale marketplace. Note that names sold there must stay as SquadHelp listings for a certain period. SquadHelp also recently opened the option to sell a portfolio of names via their wholesale marketplace. If you are selling names that are listed at a brandable marketplace make sure that you are allowed by the terms of service of that marketplace.
  • Your Own Website: You may find it effective to liquidate names directly from your own website, particularly if you have a social media presence within the domain community.
  • eBay: Some sell, and buy, domain names on eBay. You can have fixed price, if desired with best offer option, or sell them in auction format. The day I checked there were about 8000 domain names listed for sale.
Liquidation Pricing

The recent NamePros Blog article on Minimum Domain Pricing for Profitability is not relevant for names that you have decided to liquidate. That article was concerned with, on average, the minimum retail prices needed to assure portfolio-wide profitability under different assumptions.

In the case of liquidations, you are seeking to recover some funds, and the key question is how are similar names being priced in the wholesale markets.

If wanting to check prices, it is helpful to use NameBio with just the wholesale venues, like GoDaddy Auctions and NameJet, selected. Keep in mind that buyers typically pay more in expired auctions compared to similar names in user auctions or fixed price sales. If you have a NameBio membership, you can also access sales at prices less than $100.

When using NameBio for pricing comparators, keep in mind that you can set a pattern, such as LLLL for 4-letter .com, and also a Date Range.

Here at NamePros, it is helpful to monitor auctions or fixed price sections for a period prior to listing your own names, so you get an idea of typical wholesale pricing and probability of a successful sale.

Building a positive Feedback rating is important should you want to later sell more valuable names, and one way to start is with some successful liquidations.

Those with access to the Domain Academy, the GoDaddy GoValue tool provides, for a list of names, both the GoDaddy Valuation estimate plus a wholesale price estimate, along with sales probabilities for both retail and wholesale. I am not sure the factors they consider, but the wholesale value is not simply a constant fraction of the retail estimate.

While not directly on the topic of liquidation, the NamePros Blog article Sell Retail or Wholesale or Both? covers points relevant to this topic.

I hope that readers will comment below on what they find to be effective when liquidating domain names.

Update Nov 5, 2023
Mention of NameLiquidate removed, as it was pointed out (see below) that NameLiquidate no longer accepts new listings.
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
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The problem with liquidation is you will generally only sell the better domains.

If the domains you are offering are not decent quality, there is not likely to be a buyer at any price.

So you basically sell your better domains well below retail and are stuck with the lesser ones.

Also, there are other factors like liquidity. Not every format can be judged based on STR.

The higher quality the format, the higher the liquid value.

Formats like single word .com, LLL, CVCV, NNN, NNNN, etc. have a very high floor vs random "brands".

Brad
 
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The bargain bin pricing is rather outdated and hasn’t been changed in how long?

$20 doesn’t even cover a hand reg held for two years after PP fees let alone multiple names .

Cost of holding names increases year over year but there are no adjustments here for that.

Low level liquidation is the most successful but should only be done if truly in need of cash and the name is easily replaceable. People willing to spend $50 $100 plus at auction are unwilling to here 🙃
 
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If Godaddy would assign domain values ($,$$$) to private domain auctions on their platform vs. assigned values to dropped domains, we would have a nice liquid market.

I do not why Godaddy doesn't value private domain auctions but it would improve their bottom line and some domainers.
 
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Perhaps you have decided to reduce the size of your domain portfolio and retain only the better names. Or you are scaling down, as you have less interest or time to devote to domain investing. Possibly you simply have less confidence in certain sectors or niches, and want to get rid of names in those sectors.

A key question is whether to simply let domain names expire, or should you try to liquidate them to recover some or all of your invested funds.

Pro and Con

Much of the time it makes sense to at least try to recover the funds you have invested in the names. I mean some money is better than none, right? Maybe. But it will take time to try to liquidate names, and is it really worth the effort for the amount that you are likely to get? I look at some typical numbers in the following section.

TonyNames (@blogspotter), chooses not to liquidate names he plans to drop. He makes the point that sometimes names will sell retail during those last few weeks when you would be liquidating the name, and those occasional retail sales make up for what you would have made liquidating.

Here is an example I made up to investigate that point. Let’s say you have a name listed for $3500 retail and you estimate the annual retail sell-through rate (STR) at 1%. If the time that the name is off retail listings for wholesale liquidation is 30 days, that means that the lost retail opportunity is valued at $3500*0.01*(30/365), or $2.88.
Show attachment 248444
Looking at the other side of the ledger, if we estimate that if the name sells wholesale it might fetch $40, and that the chance of that happening during the 30 day period is 10%. In this case it appears to be marginally worth selling wholesale, but that will evaporate if we consider the worth of our time, a topic covered in the next section.

Value For Your Time

Your time is worth money. Let’s say you are liquidating through an auction here at NamePros. There is time required to take the domain name down from retail marketplaces, preparing the auction listing to include the required and perhaps some optional information, managing the auction, and collecting payment, transferring the name, providing buyer feedback, etc.

I summarize this with some numbers in the following table. I estimated it would take 4 minutes total to go to several marketplaces and take down the retail listings, and about 8 minutes to start the auction thread. If you do a lot of auctions, and use a template, this can be less.

After a successful auction, you need to interact with the buyer, arrange for transfer of the name, close the auction thread, leave feedback, etc. I estimate this might require 10 minutes in total. Sure, it is sometimes less, but occasionally it takes longer if there is some issue with payment or transfer.
Show attachment 248445
The typical line in the table suggests that it might add to 22 minutes total, and, if I value my time at $15/hr, that would be $5.50. I also included a minimum estimate, but it still would be $2.50 per name, and a maximum model, that comes in at $7.75.

But those figures are optimistic, as it is possible the name will not sell at all. While the time required will be less, it won’t be zero. At the same time, some of this time will need to be spent whether you liquidate or simply let the name expire.

Bottom line as I see it, if you only expect to make $5 to $10 from a sale, it is probably not worth the time to try to liquidate. However, if you have a quality name that is probably liquid and would sell for $50 to $200 or more, it is worth the effort.

Of course, if you don’t place a dollar figure on your time, and enjoy interacting with the community and prefer to see the name going to another investor, it makes total sense to liquidate, even if you only expect a few dollars per name.

It can also make sense if you are very efficient in your liquidation listing, for example listing many names at the same price and with the same conditions in a single listing.

Ways To Liquidate On NamePros

You might consider various options for liquidating names here on NamePros.
  • Bargain Bin: If willing to sell the name for $20 or less, an easy way to list is in the Bargain Bin. You can list multiple names together as a package, but keep in mind that package deals must also total $20 or less.
  • Fixed Price: If you are selling names above the bargain bin limit, or want to put a package of names together that will be higher than the limit, your best choice is Fixed Price.
  • Auction: Perhaps most visibility will be found through an auction. Even for names that will end up selling for more, generally you need to start low, often $1, to get the auction rolling. That means there is some risk that your name will sell for a very low price. Make sure you have included precise answers to the required elements such as payment method(s), starting bid, increment, and auction ending.
The NamePros Blog covered some time ago Optimizing NamePros Auctions. Things like effective titles will help your auction get traction, and using bumps or a link in your signature to help get your auctions noticed.

Note that while the majority of auctions are regular bid up for single names, you have considerable flexibility in NamePros auctions format. The NamePros Blog article Optimizing NamePros Auctions gives you some suggestions.

No matter the format you use to sell your names, make sure you have read the Rules of NamePros and are in compliance.

Other Ways To Liquidate

There are options for domain name liquidation outside of NamePros. Here are some of them:
  • The Retail Marketplaces: One method that does not take much time is to simply reduce the price to liquidation level where you currently have the name listed. Dan have a minimum listing price of $99. Afternic do not have a specific minimum listing price, as far as I know, but there is a minimum commission of $15. I believe that Sedo still have their no minimum fee in place.
  • The Registrar: Many registrars have associated marketplaces, and this can be a handy way to try to liquidate names. Commissions are often around the 10% level, but check the details for your registrar. Namecheap allow listings as low as $5, and at Dynadot you can list for as little as $1. Sav limits fixed-price listings to $10 and up, although auctions always start at $1. Porkbun listings need to be at least $20. One advantage of selling at your registrar marketplace is that, for names registered there, it is easy when the name sells as it is automatically transferred to the buyer. Sav, and now Dynadot, allow you to list names registered elsewhere – the buyer will pay the transfer fee, in addition to the cost of the domain name. Sav, Dynadot, GoDaddy and NameSilo, among others, allow you to use auction format if you wish. Sav have by far the lowest commissions of the registrar marketplaces.
  • DNWE: The Domain Name Wholesale Exchange, DNWE, is intended for selling names wholesale to other investors. You need to be approved as a domain investor to access the marketplace. DNWE no longer uses a subscription model, and anyone can list up to 12 names per day, with listings staying active for 30 days, or until sold. Sales are closed through Dan, and the seller pays a 12% commission. There is no listing fee. The minimum price is $99. DNWE also offer a Dutch Auction format, where the price counts down, but with the same minimum. A very few names are selected as curated names, and those names get a lot more attention. Typically their marketplace recently has about 5000 names for sale at any time. Because it is a closed marketplace not visible to retail buyers, one can keep your names listed retail while they are liquidated on DNWE. It is easy to relist once the 30 day listing expires.
  • NameLiquidate: Because of the problems of the past year, many have stopped using Epik services, but NameLiquidate continues. It is a Dutch Auction format marketplace, with the default minimum of $9 (you can set it higher). You can list names that are at Epik or registered elsewhere.
  • SquadHelp Wholesale: Those with SquadHelp accounts have access to the SquadHelp wholesale marketplace. Note that names sold there must stay as SquadHelp listings for a certain period. SquadHelp also recently opened the option to sell a portfolio of names via their wholesale marketplace. If you are selling names that are listed at a brandable marketplace make sure that you are allowed by the terms of service of that marketplace.
  • Your Own Website: You may find it effective to liquidate names directly from your own website, particularly if you have a social media presence within the domain community.
  • eBay: Some sell, and buy, domain names on eBay. You can have fixed price, if desired with best offer option, or sell them in auction format. The day I checked there were about 8000 domain names listed for sale.
Liquidation Pricing

The recent NamePros Blog article on Minimum Domain Pricing for Profitability is not relevant for names that you have decided to liquidate. That article was concerned with, on average, the minimum retail prices needed to assure portfolio-wide profitability under different assumptions.

In the case of liquidations, you are seeking to recover some funds, and the key question is how are similar names being priced in the wholesale markets.

If wanting to check prices, it is helpful to use NameBio with just the wholesale venues, like GoDaddy Auctions and NameJet, selected. Keep in mind that buyers typically pay more in expired auctions compared to similar names in user auctions or fixed price sales. If you have a NameBio membership, you can also access sales at prices less than $100.

When using NameBio for pricing comparators, keep in mind that you can set a pattern, such as LLLL for 4-letter .com, and also a Date Range.

Here at NamePros, it is helpful to monitor auctions or fixed price sections for a period prior to listing your own names, so you get an idea of typical wholesale pricing and probability of a successful sale.

Building a positive Feedback rating is important should you want to later sell more valuable names, and one way to start is with some successful liquidations.

Those with access to the Domain Academy, the GoDaddy GoValue tool provides, for a list of names, both the GoDaddy Valuation estimate plus a wholesale price estimate, along with sales probabilities for both retail and wholesale. I am not sure the factors they consider, but the wholesale value is not simply a constant fraction of the retail estimate.

While not directly on the topic of liquidation, the NamePros Blog article Sell Retail or Wholesale or Both? covers points relevant to this topic.

I hope that readers will comment below on what they find to be effective when liquidating domain names.

On Sedo.com you can set min. 25$/€/£ for BiN & the fee is the same from 10% to 20% depend extension or if is set Sedo MLS
 
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Valid points💐
Understanding wholesale pricing is crucial when deciding on liquidation prices. Namebio can be a valuable resource for this.
 
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Thank you for your contribution - learning every time!
 
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I found that the bargain bin and auctions were just not worth the effort for the return. When I decide I am going to drop some names, I drop the price to $99 on the major marketplaces - if they don't sell, they drop. I learned that I make more money with those $99 sales than I did by trying to liquidate all of them through other means for pennies.
 
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NameLiquidate: Because of the problems of the past year, many have stopped using Epik services, but NameLiquidate continues. It is a Dutch Auction format marketplace, with the default minimum of $9 (you can set it higher). You can list names that are at Epik or registered elsewhere.
1699172206504.png


@Bob Hawkes NameLiquidate dosen't works anymore for new users/or at all, there is no option to list domains. Only "buying" button.
 
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@Bob Hawkes NameLiquidate dosen't works anymore for new users/or at all, there is no option to list domains. Only "buying" button.
Thank you very much for pointing this out. I had not logged into Epik or NameLiquidate for some months, and had not realized it no longer allowed new listings. I guess the ones listed for sale are from internal inventory, perhaps? I just signed in now and confirmed what you say.

Anyway, I have updated the article and taken out mention of NameLiquidate.

Thanks again,

Bob
 
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you can't count your hourly wage as your opportunity cost. Because you are a trader not a worker. There is no labor market for traders where you can sell your hours. Trading involves high risk. One of the most extreme example of trading is gambling. When you play casino games as a gambler, you can't count your hourly wage as your opportunity cost. Simply because nobody will hire you as a gambler, there is no labor market for those services. There are high risk labor marketplaces but those risks are insured by insurance companies or governmental social security systems.

Time of traders has no value. Because nobody buys it. There is no opportunity cost to be considered. You are not a dentist, plumber, driver after all. Nobody will pay you for your time or service. Trader and broker are not doing the same thing.

Even if you disregard the fact above, worldwide hourly wages vary too much. Domain trading is a global business.

Counting your time as a cost is totally wrong.
 
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What people lesser consider is RoST — Return on stress taken!
 
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Time of traders has no value. Because nobody buys it.
An interesting view (I gave your post a thank because it challenged me to think in a new way). I looked at traders for other speculative items, like day trading of stocks, and definitely people pay traders for those. e.g. GlassDoor on the basis of openings suggest an average base pay (before performance bonuses) of $59k to $105k per year for day traders. https://www.glassdoor.ca/Salaries/day-trader-salary-SRCH_KO0,10.htm That is not domain traders, so does not directly refute you point, but I disagree on more fundamental grounds, please see below.

worldwide hourly wages vary too much. Domain trading is a global business.
I agree, and sorry if that was not stressed adequately. Clearly each person would have their own figure, which could be as low as $0 if they view this as a hobby.


Counting your time as a cost is totally wrong.
I disagree. Time spent on something is time taken from something else, and that has a value we should not overlook. That something else could be in domain investing (e.g. research on potential acquisitions or better listing and presentation of names) that would yield a probable return, or it could be in a person's other job. Even if there is no other job, time still has a value, since time spent on one thing, like liquidations, is time not spent with family or friends, or other things that you treasure. As @william reminded us in his well-argued post: Is Your Time Worth Anything?

But thanks once more for a position that made me think. If everyone on NamePros agreed on everything, it would not be as interesting, or valuable, place to spend some time. :xf.smile:

-Bob
 
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An interesting view (I gave your post a thank because it challenged me to think in a new way). I looked at traders for other speculative items, like day trading of stocks, and definitely people pay traders for those. e.g. GlassDoor on the basis of openings suggest an average base pay (before performance bonuses) of $59k to $105k per year for day traders. https://www.glassdoor.ca/Salaries/day-trader-salary-SRCH_KO0,10.htm That is not domain traders, so does not directly refute you point, but I disagree on more fundamental grounds, please see below.


I agree, and sorry if that was not stressed adequately. Clearly each person would have their own figure, which could be as low as $0 if they view this as a hobby.



I disagree. Time spent on something is time taken from something else, and that has a value we should not overlook. That something else could be in domain investing (e.g. research on potential acquisitions or better listing and presentation of names) that would yield a probable return, or it could be in a person's other job. Even if there is no other job, time still has a value, since time spent on one thing, like liquidations, is time not spent with family or friends, or other things that you treasure. As @william reminded us in his well-argued post: Is Your Time Worth Anything?

But thanks once more for a position that made me think. If everyone on NamePros agreed on everything, it would not be as interesting, or valuable, place to spend some time. :xf.smile:

-Bob

A corporation would love to hear people arguing that their time doesn't cost anything and shouldn't be considered.
 
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I know many domain investors complain about the lack of liquidity, but it is that lack of efficiency that allows the big potential returns.

In general the more liquid an asset is, the lower the potential returns are.

I guess my advice would be not to go all in with just domains.

They are best mixed with some traditional investments as well. That will provide upside and some stability.

Brad
 
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An interesting view (I gave your post a thank because it challenged me to think in a new way). I looked at traders for other speculative items, like day trading of stocks, and definitely people pay traders for those. e.g. GlassDoor on the basis of openings suggest an average base pay (before performance bonuses) of $59k to $105k per year for day traders. https://www.glassdoor.ca/Salaries/day-trader-salary-SRCH_KO0,10.htm That is not domain traders, so does not directly refute you point, but I disagree on more fundamental grounds, please see below.


I agree, and sorry if that was not stressed adequately. Clearly each person would have their own figure, which could be as low as $0 if they view this as a hobby.



I disagree. Time spent on something is time taken from something else, and that has a value we should not overlook. That something else could be in domain investing (e.g. research on potential acquisitions or better listing and presentation of names) that would yield a probable return, or it could be in a person's other job. Even if there is no other job, time still has a value, since time spent on one thing, like liquidations, is time not spent with family or friends, or other things that you treasure. As @william reminded us in his well-argued post: Is Your Time Worth Anything?

But thanks once more for a position that made me think. If everyone on NamePros agreed on everything, it would not be as interesting, or valuable, place to spend some time. :xf.smile:

-Bob

Wording is wrong in that job ad. They are not looking to hire day trader. They are looking to hire a broker who earns commission or fixed income with zero or little risks if the trade ends up with loss. Trader pays the loss in full with his/her own means OR takes the profit in full minus operational costs. Trader does trade, broker works for others with almost nothing to lose except his/her job.

Traders don't make or loss money based on time and efforts they spend. Traders make the most money for the risk they take. The most extreme example would be gambling. Betting $1 per hour for 10,000 hours vs $10,000 in 1 hour would result in similar amount of profit/loss. 10,000 or 1 million or 1 billion hour effort is equal to 1 hour effort for traders. The time passing between buying and selling is a cost. I think we aren't talking about that.

Hourly wages can vary 200x in two different parts of World. This is another problem. Your 1 hour maybe worth $100 or $300. But if you relocate to another country your same 1 hour maybe worth less than $1. Forget about countries for a moment, in 2 different regions of the same city, wages can easily vary 10x. So, you can't price your 1 hour correctly for 10x, 100x, 200x difference between the max and min values. Taking the median wouldn't help either. If there was an established labor market in domain business, employers would likely hire domainers for couple of dollars per day. Domainers would work remotely over the internet. In the best scenario, if we assumed there is opportunity cost, it would be around $50-100 per month.

How much is $50-100 per month exactly? For comparison,
- renewal cost of a domain is $1 per month. Dropping 40-50 domains would save $50 per month.
- registering 10 less domains per month would save $100 per month.
- selling a $500 domain per month directly without paying 20% commission to afternic/sedo would save $100 per month.

One more important detail, if someone works for others, making loss from trade attempts will be more likely than making profit. You can't become a worker and a trader at the same time. I know there are success stories of billionaires, but those are very lucky people to be in the right time at the right place. Unless you are very lucky it can't happen to you and that's why those are success stories, because happening very rarely.

Effort, how many hours worked, is not a cost in trade. However waiting to make sale is a cost. In trade you get nothing for your efforts, get paid for waiting without doing almost nothing. If you were a worker you would be fired if you get caught while doing nothing. Boss and worker are like apples and oranges. Being a domainer makes you boss. Once you make profit from a buy-sell activity, you can't become happy with being worker. Being a reseller or trader or boss is one way ticket, you can't turn back easily. Nobody wants to hire a boss and a boss doesn't want to be hired. Those are 2 very different worlds. Black in world of worker is white in world of boss, apple for worker is orange for boss.

In order to count something as a cost, it must belong to the same world, either worker or boss world. Wage doesn't belong to world of bosses. Paying 20% commission to marketplaces don't belong to world of workers. In that job ad, commissions paid to capital/money markets, or paying office rent aren't cost for the person who will apply to that "trader" position.

Sorry for taking time for this long post. This is indeed a broader concept than I wrote here.
 
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James of DomainJames.com was kind enough to offer some comments on this article on X and, with his permission, I quote part of it below. He has tried more liquidation channels than anyone else I know, and has, even though relatively new to domain investing, been very successful in wholesale transactions and liquidations. He has over past year had more than $25,000 in wholesale sales (not profit, but sales volume). He has handled a lot of 4L .com, so the liquidity of that asset class has helped, of course.

He commented on the question of whether it is worth it to liquidate, and suggested it probably depends on the type and quality of names whether the tradeoff in lost opportunity to potentially retail sell is worth it.

While he has tried all of the avenues mentioned in this article, and a number of others, he has had most success with SquadHelp Wholesale Marketplace. He also comments on the importance of networking with other domain investors to build the relationships so they feel comfortable doing business with you.
Working hard to network is an excellent channel to liquidate. I participate in WhatsApp groups and on X etc which is a great avenue to buy and sell from trusted folk.
Squadhelp is by far the best place to liquidate based on my last 12 months IF you’re realistic about price to liquidate relative to quality of names. Many want $500 for a poor hand reg made up brandable, and they’ll never sell. But if you are fair you can move names there regularly (and the squadhelp system is fantastic). I’ve probably done c25k this year, but of course that’s in the wholesale so by no means all profit.
We sometimes think that the successful domainers all eventually move away from wholesale selling, but he comments that is not true:
As I improve and learn I hope to be doing less liquidation, but I see greats in these groups (really successful domainers) that do it, albeit with higher quality names. Keep the cash flowing, especially in these times.
Thanks for the great points, James. You can read his full reply if you are on X, or follow him at DomainJames.

-Bob
 
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I may write more fully about it when I have had time to use it longer, but relevant to the topic of liquidation using the main marketplaces, the Afternic Beta Search, which has just opened for those who have GD Domain Discount Club memberships, has overnight made it easier for people to search for names that may be priced at wholesale levels. You can search by length, registered TLDs, age, price range, number of registered TLDs, etc.

Several experienced investors have already commented that they have used it and found some names that they purchased. It is now much easier for people to find your names using parameters that investors often use for filtering.

It is version 0.1 so will probably have a few rough edges. I just have the basic version of the Domain Discount Club and it is available on that plan. Anyway, thought I would point it out. It was just released this week.

-Bob
 
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I understand the point about being paid for your time.

However, it is almost impossible to quantify that in a field like this.

If I work a normal job it is easy to quantify because I get a paycheck on a set time period that shows the hours worked x hourly wage. You don't get paid if you don't work.

When you run your own business nothing is really guaranteed. In fact, most businesses will fail.

However, with domain investing I am still making money from work I put in years ago.

I put in much more work in the past than in the current market, but those hours are still paying off and likely will for some time.

How do you quantify that?

Also, when it comes to running your own business it often gives you invaluable experience that can't be immediately quantified as money in your bank account.

Brad
 
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Thanks for well-expressed views, @bmugford. The idea of time spent and whether a factor that should be entered into decisions is both important and one that differing logical viewpoints exist. Possibly I will think about putting together some views on just this topic for a future article sometime.

My main point here is that by putting some value on it, even if that value would be very different for different people, and for some might choose to value at $0, it is a reminder that when we put time into one thing, it is time that we no longer have for other things. For example, I can put time into trying to get a bit back from liquidating names, or put that time into deeper research on names being considered as acquisitions.

I put in much more work in the past than in the current market, but those hours are still paying off and likely will for some time.
A good point. In that sense I guess making good decisions in domain acquisitions pays off like future royalties for a successful book or music composition.

Also, when it comes to running your own business it often gives you invaluable experience that can't be immediately quantified as money in your bank account.
I agree 100%. That might well be an argument to invest time in liquidations, since you will learn better the types of names that are liquid and are appreciated by other investors, and that will probably help in future acquisition choices.

Thanks again,

Bob
 
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Regarding time, I posted this before, and I still feel the same way.
https://www.namepros.com/threads/is-your-time-worth-anything.1267847/#post-8538011

Don't fall into that "hourly" trap. I deal with this during meetings with some of my sales group (non-domaining business). Most people have been conditioned to think that way. Ask yourself why...

Poor people get paid by the hour, wealthy people are paid for their value.

Create the value first, the money follows. I would rather work 70 hours a week for 10 years and have lots of money forever, than work 40 hours a week for 40 years to be broke.

Your "hours" are most likely ones that would be spent watching Netflix or playing video games anyway. That time is effectively "free". You are just using it to create value instead of tossing the time in the trash.

Sleep less.
 
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Your "hours" are most likely ones that would be spent watching Netflix or playing video games anyway. That time is effectively "free". You are just using it to create value instead of tossing the time in the trash.
That's a good point, because in the domain field you can do 90% of the stuff at your own leisure.

Other than when auctions end, nothing really has to be done at a set time.

So, it gives a lot of freedom to put in the time when you choose.

In a normal job, you don't have much say. You have to schedule your commitments around the job.

In the domain field, you can schedule your work around your commitments.

Brad
 
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