NameSilo
Eric Lyon

Why I Develop Every Domain Name Investment

Views:
18,657
Comments:
94
By Eric Lyon, Apr 8, 2015
  1. Eric Lyon

    Eric Lyon Member Services, NamePros Super Moderator PRO Gold Account VIP Trusted Contest Holder

    Posts:
    20,387
    Likes Received:
    14,886
    1. I'm down to 15 domains because I sold all the others (Discussed this in the video interview).
    2. What works for me, may not work for others, there is no domain bible everyone must follow.
    3. I had 250+ domains at one point and managed to sell them all just fine after developing them all first (I think that qualifies as hundreds, not to mention the thousands I've bought/developed/flipped over the years faster than I could let them sit)
    4. I decided to stop buying in bulk (Hinse selling off my 250+ portfolio, also talked about in the video interview)
    5. Just because I no longer own 250+ doesn't mean I have forgotten what it was like to have that many.
    6. Even in 2015, a mini-site generates more revenue than a parked page or a domain that just sits and continues to accrue yearly renewals because it isn't selling.

    You can make all the excuses you want as to why you refuse to dedicate any time in developing a portfolio of domains. That's your choice. If what you do now works for you, keep it up. What works for one may not work for others and I wish you the best of success in your business model. Obviously, developing isn't your thing and I won't knock you for it. Glad you found a niche in the industry that allowed you to finacially go full time with it. ;)
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. JB Lions

    JB Lions Top Member VIP

    Posts:
    13,799
    Likes Received:
    18,708
    I have more sites that make money than 15. I'm just trying to figure out why you don't since it's so easy. All those sites you sold, why if they were making money, profit? Again, why aren't you making new ones? Are you up for showing your method with a new live example? I would love to see anybody here literally work 30 minutes on a site and for it to make money. Anybody can post about it all day long. Show me. Anybody.

    You're making this sound so easy, the thing is there are plenty of people on this forum that do develop. They know it takes time to learn how to make a site. Get good content. SEO. Other marketing. Research. Updating. etc. You're coming in like let me pump something out in 30 minutes.
     
    Last edited: Apr 9, 2015
  3. Eric Lyon

    Eric Lyon Member Services, NamePros Super Moderator PRO Gold Account VIP Trusted Contest Holder

    Posts:
    20,387
    Likes Received:
    14,886
    Please re-read the article to identify with the point of developing in order to "SELL" it easier or boost the value to make more profit. Why would someone keep what they developed for the sole purpose of selling? your questioning makes no sense in reflection of what this article was intended for. If you want to debate developing to keep and never resell, that's a completely different topic. This article was just to get domains up to pay for them self till they sold ($12 a year each in renewals depending on extension?), not to teach anyone how to develop a long term sustainable business site.

    I'll be releasing an article Tue. that goes into more depth and detail on how I build my long term business model sites. I would love for you to follow up with me after you read that one if it doesn't answer those long term development questions for you. :)

    Again, this is not a tutorial to teach you about building a long term business website, just an article on one of hundreds of different techniques I've used. Rather than take this article off-topic from what it was intended for, I invite you to read the next article when it rolls out to help clarify the difference between a development to flip and a development to keep long term.
     
  4. Beezy

    Beezy Top Member VIP

    Posts:
    5,005
    Likes Received:
    2,045
    Can I get a link to the video interview that keeps getting referenced in this discussion? thanks.

    Great stuff!
     
  5. JB Lions

    JB Lions Top Member VIP

    Posts:
    13,799
    Likes Received:
    18,708
    Below

    250+? In the video you said 150+ was the most you ever had, video below.

    Looking forward to the long term article. I hope the model is based on more than relying on search engines for traffic, because that's not a good long term strategy. I've seen way too many people make that mistake.

    6. Even in 2015, a mini-site generates more revenue than a parked page or a domain that just sits and continues to accrue yearly renewals because it isn't selling.

    How do you know this? You can't. Every domain is unique. The only way to know for sure is to test out different methods.

    Short term, it probably hurts your chance at a sale. If somebody visits what looks to be a developed site, it's being used. Unless that developed mini-site has a big, easy to see The Domain For Sale sign.

    As far as revenue, I think with most domains, it's probably better off parked. Those pages are setup to convert. I can see a few exceptions. If you have a domain that's getting some traffic, maybe there are better ways to monetize it, leads, affiliate links etc. You would have to test it out yourself to know for sure. But to your title, Develop Every Domain, it's just not going to make sense for the majority of domainers. Domainers want to sell domains right? If somebody wants that domain, they could care less if it's parked or developed, I don't care. But I do think a developed site makes it look less likely to be up for sale. That's why I think it might hurt.


     
    Last edited: Apr 9, 2015
  6. Eric Lyon

    Eric Lyon Member Services, NamePros Super Moderator PRO Gold Account VIP Trusted Contest Holder

    Posts:
    20,387
    Likes Received:
    14,886
    please don't forget the "why I" in the title which indicates I'm only talking about what I've done, my " what works for one may not work for another" comments, or the "opinion" tag in front of the title which is only based on trial and error testing since 2005. I am by no means an expert and have a lot to learn still.

    have a wonderful day and keep an eye out for the next article (which will also be only based on my own testing and opinion that will not be a solution for everyone). ;)
     
  7. main

    main Top Member VIP

    Posts:
    868
    Likes Received:
    667
    Great discussion JB and Eric.
     
  8. Beezy

    Beezy Top Member VIP

    Posts:
    5,005
    Likes Received:
    2,045
    I've sold domains that I was actively using, btw. Not just mini-sites - active blogs that I was posting to daily. The buyers came at me with strong offers out of the gate knowing that they had to pay more than the value of the site itself to me at that point.

    And I've made offers on domains which had active sites (probably too low in most cases).

    So I'm not sure the argument that you won't get offers holds up if it's a really good name. However, ymmv.
     
  9. seoactivist

    seoactivist Established Member

    Posts:
    14
    Likes Received:
    9
    We have several hundreds, will provide services for thousands.

    For us the red pill has been WordPress Multisite Networks =)
    lmgtfy .com/?q=WordPress+Multisite+Networks
     
  10. AGAME

    AGAME Get That Perfect Name Gold Account VIP

    Posts:
    1,981
    Likes Received:
    2,932
    Thank you for this very good discussion Eric!
     
  11. nyyyia

    nyyyia New Member

    Posts:
    7
    Likes Received:
    4
    Will be looking for it. Thank you.
     
  12. 4better

    4better Established Domainer VIP

    Posts:
    2,595
    Likes Received:
    4,005
    Great pros and cons for Eric and JB. Bright light comes from a positive and negative side. Definitely, bright ideas arise. Enlightening post.
     
  13. alien51

    alien51 Take Me To Your Leader VIP ★★★★★★★★★★

    Posts:
    2,472
    Likes Received:
    1,378
    I am in the Development Business myself. Perhaps almost 85% of my revenue, comes from development. And i own close to 3,000 domains now.

    Of course not all of them are developed. Many of them are just stockpiled in my freezer bay. Nearly all of them are COM extensions. Only a few NET and ORG extensions.

    I like to buy domains that are in my view, have a good "branding" potential. I like to stockpile them in my own freezer, because i do not like them to fall into someone else's prison cells.

    I feel sad about nice brand names that are just being held hostage in prison cells doing nothing. If you don't snatch them the first time, these domains will simply just get passed to one hostage-taker to another, with the price getting jacked-up every time the ownership changes. So i'd rather snatch the name early, and just stockpile them in my fridge "for future use". It is CHEAPER to pay renewal fees, than to pay ransom fees.

    My business model revolves around partnering with business owners (the end users), who want their business to have an internet presence. The Development part, is pretty standard stuff. The usual e-commerce portals, corporate websites, etc.

    Your basic problem with Development, is the CONTENT.

    What i see, especially with Domainers, is that you are FORCING yourself to produce content to give value to the domains you own.

    This is the reverse of being an End User. An End-User already has superb content, it's just that they don't have the domain to house those content.

    The pitfall of a Domainer producing your own content, is that YOU ARE NOT AN EXPERT on the content you are making. You can't possibly be an expert in cooking, gardening, forex trading, fashion, politics, astronomy..... You can't be a jack of all trades.

    If you do "forced development", you will just end up making Mini-Sites. These minisites are only meant for one thing - and that is to TRAP people into clicking advertisements by tricking them into believing that you have something "useful" to say on your website, when in reality you are either just rambling about your idea on the topic, or simply doing content spinning.

    Other "forced developers" hire freelancers to write content for their domains. But mostly, these freelancers are nothing but professional content spinners.

    Content spinners are like make-up artists. They can turn an ordinary woman, into Katy Perry. Imagine what kind of magic that will do to your domain, right ?? But deep inside, you know it's still not the real thing.

    My business model is to partner with the product creators or the content authorities, to bring their creation or ideas to the internet and expand their reach.

    I have about 200 fully developed sites. The rest of my domains either have minisites that earn ad revenue enough to pay for their renewals and hosting fees, or just sitting idle pointing to nothing. But mostly, i try to set-up some kind of static "corporate-looking" content on these idle domains, to create the illusion that they are being used. I don't want somebody to find a hole they can use to UDRP me about a domain they believe i am just squatting on.

    Of course, if you do happen to own close to 3,000 domains, it would be inevitable that sooner or later someone out of the blue will inquire if one of the domains in your portfolio is for sale. So that part, is what makes up my Domaining sideline revenue.

    I understand my model does not apply to many Domainers, because many domainers are lone-wolf warriors. You are a one-man army, just sitting infront of your computer, amassing domains by just clicking and typing your credit card number.

    However, if you want to expand, you would eventually have to go out and reach out to do business. To make money, you need to fill someone else's need. What do people need? Some people just need the domains. So that's why you are a domainer. You just sell domains.

    But i discovered that there are more people who want more than just domains. The more stuff they want you to do, the more money they want to pay you.

    Domaining is a difficult business model for me. Because once you sell the domain, you are hard-pressed to go find looking for another gem to replace the one you sold. So mostly, it's a one-time payment. And there is no guarantee you can find another gem to flip again. Not to mention it is very time-consuming, and the time you do spend looking for domains in the dropped pools or someone's prison cells, are not very pleasant time spent.

    But if you have a business model that produces a sustainable revenue, then you don't need to hang around the garbage dumps sifting through the thousands of trash looking for that gem, if you are lucky. And that, to me, is more comforting.
     
    Last edited: Apr 9, 2015
  14. Eric Lyon

    Eric Lyon Member Services, NamePros Super Moderator PRO Gold Account VIP Trusted Contest Holder

    Posts:
    20,387
    Likes Received:
    14,886
    excellent post. I'll be talking about some of this in my next article as well as a few of my revenue models.

    thanks for sharing. Always nice to read about others with similar development thoughts:)
     
  15. domainscp

    domainscp Market Restricted

    Posts:
    680
    Likes Received:
    177
    Nice article, thanks Eric!
     
  16. JoeRay

    JoeRay New Member

    Posts:
    1
    Likes Received:
    3
    I developed many of my sites in an hour or two, I don't do it to increase revenue but to protect them form company's who would like my names but do not want to pay for them. So even though some the links on the sites may not work after a few years I feel company's like Chilli's will think twice before going to WIPO and try to take a domain like BabyBackRibs.com from me. Other sites like FloridaCondos.com allow me to point other real-estate related sites I own to it like Luxurycondos.com thus protecting multiple names with one web site. As far as perspective buyers not thinking it is for sale because it is a developed site that has not happened. One look at the site and someone interested in the name can see I am not making a ton of money on it so I still get offers. One added plus is it keeps low ballers from making unrealistic offers which is fine with me.
     
  17. Tia Wood

    Tia Wood Business Website Consultant VIP ★★★★★★★★★★

    Posts:
    1,167
    Likes Received:
    1,317
    Very good point you bring up. I always encourage people to not develop unless they not only have a solid business plan but have the means either by themselves or hiring others to keep it going. This includes content creation. And if they do develop to choose a handful of their best names at a time until that set can pay for the next round of developed websites.

    Of course that doesn't work for everybody because of the different quality of names, monetization methods, audience, etc among each portfolio so a strategy needs to be developed on a portfolio by portfolio basis.
     
  18. kawalsukhi

    kawalsukhi Top Member VIP

    Posts:
    1,415
    Likes Received:
    1,401
    SO much great things to learn!! Thanks to all that contribute and making Namepros a great learning place for domainers!!

    Love the article!
     
  19. NameSugar

    NameSugar Established Member ★★★★★★★★★★

    Posts:
    98
    Likes Received:
    17
    ^^ Yes, this. ^^
     
  20. brandnow

    brandnow Selling hotcakes VIP

    Posts:
    1,847
    Likes Received:
    1,277
    One problem I've always noticed that has prevented me from developing more domain names I own into sites is well, Sedo. I like to list my domains for sale at Sedo, because that's how some buyers find names. However, one thing I have always hated about Sedo is that Sedo takes a much higher commission if your domain is developed and not parked at Sedo. What do you guys think about this? And do you just face the facts that you need to pay significantly higher commissions if your site is not parked at Sedo, but rather developed? I also see this pricing structure by Sedo as detrimental to the overall development of the web. Because it prevents people, like me, from wanting to develop certain domain names into full web sites.
     
  21. NameSugar

    NameSugar Established Member ★★★★★★★★★★

    Posts:
    98
    Likes Received:
    17
    I used to be troubled by this dilemma as well, I eventually realized you have to treat Sedo like Sedo treats you, cold and calculating. The only way I feel a "broker" (and man we domainers do often use that term loosely) deserves such high commissions is if they bring the customer to you. If the domain itself generated the inquiry then all Sedo provides is a restrictive and cumbersome negotiation platform that takes a massive slice out of your self-service profits. (Even worse for low priced sales because they have the audacity to charge a ridiculous minimum that effectively brings the commission to 50 and even 60%. WTF.)

    Anyway, I now park my revenue names at DomainNameSales, list all my domains for sale there and point most of my non-rev portfolios there also just to route sales inquiries into their platform. I also list my portfolio on Afternic and Sedo as well as any internal markets registrars may have, like Dynadot or GoDaddy but I don't route any domain traffic there.

    My basic logic here is that I want the inquiries generated by the domain itself routed to the best sales venue and for me that's DNS, even in this early stage. If an inquiry is generated by a user searching the database of a specific marketplace, then it's a lead I may not have gotten otherwise. Since I know any Sedo inquiry I get came from Sedo it doesn't stab me in the gut as much to pay the higher rate because it wasn't parked there.
     
    Last edited: Apr 10, 2015
  22. rubencouto

    rubencouto DN Front VIP

    Posts:
    4,735
    Likes Received:
    7,770
    Hello!

    For a newbie, the perspective of developing a domain name into a real website, will also help filter out a few bad domain name ideas! :)
     
  23. AMRO1001

    AMRO1001 Established Member

    Posts:
    376
    Likes Received:
    386
    I am not a Domainer but I once thought that The number of domains sold above 1 Million dollars can be counted on your fingers...

    However, How many websites/online businesses were sold above 1 Million Dollars? much much more...

    That why I prefer developing online businesses over Domain investment, I just select Domains that might be developed into Websites /or sold one day ( with few exceptions)..

    This is especially true for gTLDs, because everyone is expecting not to be able to sell his gTLD before 5 years!...so you better develop some of the domains tell then....and developing sites on new extensions might help promoting new extensions....

    I suggest someone should start DevelopYourDomain.how :)
     
  24. lock

    lock Traffic.tools VIP

    Posts:
    2,607
    Likes Received:
    2,382
    I can say it is quite easy to achieve traffic by even the most minimal development. If the site is a bit obscure it stands a chance of bringing in traffic in stats compared to other mainstream content. Less competition on keywords can allow some of your opportunities to better on things you thought fell short also.
     
  25. dmyre

    dmyre Established Member ★★★★★★★★★★

    Posts:
    1,192
    Likes Received:
    27
    I've still made you lowball offers... :)
     

Share This Page

NameWorth
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...