The kind of cash flow needed to start and maintain a domaining business

RR151 · Nov 18, 2018

What kind of cash flow is needed to start and maintain a domaining business? Assuming you know what you are doing what kind of inventory do you need?

Are you buying premium domains in the hopes of flipping them or are you looking for the end user that has a need then source an acceptable domain? I would think that marketing your domaining business is more important than buying up unrelated inventory for the sake of buying inventory...

Maybe you buy a premium domain then develop the web presence. Once developed with traffic you market the domain and website...This is easier said than done, right?

I am trying to understand this business...

Any comments, RR

Addison · Nov 22, 2018

RR151 said:
What kind of cash flow is needed to start and maintain a domaining business?

It depends on numerous factors, but for the sake of this discussion...

If you can invest $100 fabulously, then you could turn that into $1,000 without much effort. Rinse and repeat as you climb the ladder from the minor leagues to the major leagues.

The cost of maintaining the business is going to grow fiercely as you move up the ladder but so will your revenue and profits. The cost of maintenance is not a factor as long as you only buy within your means and sell enough to cover your renewal fees.

Start small and finish big.

Addison · Nov 22, 2018

RR151 said:
Are you buying premium domains in the hopes of flipping them or are you looking for the end user that has a need then source an acceptable domain?

Flipping to other investors only works in the minor leagues.

I'd focus on end users if I were you because it will be exactly the same in the minor leagues vs. the major leagues. If anything, it gets easier in the major leagues because your buyers will have more money and haggle less, which is a grave annoyance in the minor leagues.

RR151 said:
I would think that marketing your domaining business is more important than buying up unrelated inventory for the sake of buying inventory...

You do not market your business. You market your domains. List them on marketplaces and reach out to businesses that have (or should have) a legitimate interest in your assets.

RR151 said:
Maybe you buy a premium domain then develop the web presence. Once developed with traffic you market the domain and website...This is easier said than done, right?

Don't waste your time with development. Development is all or nothing: you devote your life to development or you don't do it at all. Anything in-between is a waste of time and money.

RR151 said:
I am trying to understand this business...

Read and study a lot before you buy.

RR151 · Nov 22, 2018

Addison said:
You do not market your business. You market your domains. List them on marketplaces and reach out to businesses that have (or should have) a legitimate interest in your assets.

That's a good point..."focus on the domain" that is for sale. I would also think that you should stay in the markets that you know best...Join your domain topic niche forums and message boards then market the idea behind the reason you purchased your new domain.

Thanks for the help, RR

Addison · Nov 22, 2018

RR151 said:
Join your domain topic niche forums and message boards then market the idea behind the reason you purchased your new domain.

Superb idea!

RR151 · Nov 22, 2018

I have a local directory idea that is used to create a new food directory in each city. The idea talks to a specific "Mom and Pop" restaurant niche that finds it tough to keep up with the franchise restaurant and their advertising programs.

If I have a complete business plan E-Book that is related to the marketing of a specific city niche using my local domain format. Is it a good idea to go after local domains that are created with a city-related topic in the .com extension. So instead of the .pizza extension, we use the .com extension with pizza in the domain.

Just thinking out loud and looking for direction for my first buy,

RR

viniproject09 · Nov 22, 2018

Yes, Its always good to make your domain filled with its niche content and do some SEO as well. IT make the domain valuable. Buyer love those domains that have good rankings on their niche keywords.

dobbsie · Nov 29, 2018

Addison said:
It depends on numerous factors, but for the sake of this discussion...

If you can invest $100 fabulously, then you could turn that into $1,000 without much effort. Rinse and repeat as you climb the ladder from the minor leagues to the major leagues.

The cost of maintaining the business is going to grow fiercely as you move up the ladder but so will your revenue and profits. The cost of maintenance is not a factor as long as you only buy within your means and sell enough to cover your renewal fees.

Start small and finish big.

dobbsie · Nov 29, 2018

thank you for a very helpful reply

The kind of cash flow needed to start and maintain a domaining business

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