Because I doubt this program will be complete in the next 10 days .. lol, let's base ourselves on the standard $8.49 registration. At $249, they need to sell 3.5% of their portfolio of such names a year just to break even.
This is essentially where the problem lies. Offering a even-odds $100 bet implies you're giving the domain more than a 50% chance of selling in a year. But the fact is that, domains like this don't sell at anything close to a 3.5% rate. I'd say even a 0.35% chance is extremely generous for something as specific (and really not good at all) as KentTreeService.com (unless there is an existing exact, which again, would theoretically be TM infringement). So ultimately your math on this is off by a factor of 150x .. and probably more.
Yes domains like KentTreeService sometimes do get lucky and sell .. but for every such domains that sells, there are hundreds and even thousands that don't .. that's why the math is strongly working against such a program.
Some of the math can be compensated for by many of the things I'm mentioned above .. specifically great and targeted outbound on non-TM-infringing domains can indeed put a big dent in the odds .. but we're still talking huge odds .. and if you're thinking domains like KentTreeService and aarmus .. then most definitely the numbers are not there in a way that this could be done in a TM respecting way.
All that negativity aside .. I do hope you find a way to make this work for the most deserving and in need of help getting off the ground .. hopefully some of what I said above will help you get towards something that has a better chance of working ... but again .. you need to be very careful .. ultimately it will look bad on Epik if there are too many cases of outbound to TM holders.
Thanks for all the input on
@Ategy.com. I need more time to adequately parse your input and respond thoughtfully. You do bring the analysis!
I would add just a bit of context. About 12 years ago, after leaving the company called GMI that I had spent 7 years growing 100+% per year, I set up a LinkedIn profile. It is here:
https://www.linkedin.com/in/enlightenedcapitalist/
The user handle was "Enlightened Capitalist". The thesis at the time was that it should be possible to do well, by doing good, and to do good by doing well. It was admittedly a bit idealistic.
Since then, as you know, I have gone down many rabbit holes and have a deeper understanding of how the world really works, as opposed to how it purports to work.
In other words, fast forward 12 year, there is an overlay of
RealPolitik and also a very large overlay of Biblically-inspired faith. I think you know what I mean.
Now, in the context of digital empowerment and economic development, Epik is in fact engaging in a marketing strategy. Emerging markets are going to be an overwhelming focus. I believe it will work.
So, why speak openly about it?
1. I hope more domain investors are inspired to take an interest in the lives of Nigerian domainers like Adegbite and Mandu, who could use the money, rather than be too impressed with Bar Rafaeli and Danica Patrick, who clearly did not need the money or the attention.
2. I hope more companies will recognize economic development and digital empowerment can be a growth engine for their businesses. I think Epik can lift up the lives of about 1 million people in the next 5 years, directly and indirectly. Unfortunately it is a drop in the bucket. So, we need replicable formulas.
So, the broader question for the domain investment community is what methods and strategies can be employed to create, validate and scale, win-win strategies that put assets into the hands of citizens of developing economies that make the pie
bigger for
everyone?
As for the example of that one domain, it is just an example to demonstrate domain selection. I think he is underpricing it for a retail buyer and should instead do Make Offer pricing and push for a price point that reflects value, e.g. the margin contribution of 5 new client jobs that would have been missed if the person did not own that domain name when they logically should have owned it if money was no object.
I think an important challenge for developing economy domain speculators and investors will be to promote a mindset that developed economy business owners and individuals, are not just rich saps to be fleeced and exploited. There has to be a cultural mentality of win-win, and a desire to promote economic cooperation and cultural understanding through win-win commerce.