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strategy Real domaining costs

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Four examples. Adjust and expand for your needs. Thoughts welcome.


Growing domain folio

Typical backorder acquisition with low auction bidding @ poverty wage


$210 labour /domain. $210 * 52 = $10,920 (7 hours /wk mining lists with 1 buy /wk. Survivable minimum wage $30/hr inclusive of super + benefits)
52 domains @ $100 = $5,200
52 renewals @ $10 = $520

$16,120 total (excluding $520 renewals every following year). Domains are fixed folio in subsequent years.

Optimistic ~6% folio turnover (~3 domains) = $5,373 per domain sale price /yr break even
Realistic ~2% folio turnover (~1 domains) = $16,120 per domain sale price /yr break even


Typical backorder acquisition with moderate auction bidding @ livable wage

$420 labour /domain. $420 * 52 = $21,840 (7 hours /wk mining lists with 1 buy /wk. Realistic livable wage $60/hr inclusive of super + benefits)
52 domains @ $500 = $26,000
52 renewals @ $10 = $520

$47,840 total (excluding $520 renewals every following year). Domains are fixed folio in subsequent years.

Optimistic ~6% folio turnover (~3 domains) = $15,947 per domain sale price /yr break even
Realistic ~2% folio turnover (~1 domains) = $47,840 per domain sale price /yr break even



Fixed 100 domain folio over 10 years

Typical backorder acquisition with low auction bidding @ poverty wage


$210 labour /domain. $210 * 100 = $21,000 / 10 = $21,000 / 10 = $2,000 /yr (7 hours /wk mining lists with 1 buy /wk. Survivable minimum wage $30/hr inclusive of super + benefits)
100 domains @ $100 = $10,000 / 10 = $1,000 /yr.
100 renewals @ $10 = $1,000 /yr.

$4,000 /yr total sales (break even).


Typical backorder acquisition with moderate auction bidding @ livable wage

$420 labour /domain. $420 * 100 = $42,000 / 10 = $4,200 /yr (7 hours /wk mining lists with 1 buy /wk. Realistic livable wage $60/hr inclusive of super + benefits)
100 domains @ $500 = $50,000 / 10 = $5,000 /yr.
100 renewals @ $10 = $1,000 /yr.

$10,200 /yr total sales (break even).
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Ooof! Harsh numbers! Some will quibble about your cost structuring but bottomline...

Good thing domaining is a hobby thing for me. The ChiP frenzy pulled me from solid red into solid black and that was pure luck.

Deep respect for the mid to low range domainers who can make a living doing it.

I fear for many, domaining is like uber or lyft driving - you aren't really making a profit.

If I was going to make a living with domains, I would create a few straw sales to gain a rep as a broker. 😎
 
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