$100k a year

[Mikeross1]

I have a contact inside Godaddy that says he knows a few gentlemen that make $100k a year flipping domains with a portfolio size of 3000 domains. What do you think they are doing..high volume at low price($200 bucks) , or low volume at a high price? Any theories?

 

[iowadawg]

Lots of domainers do that.
No big secret of most of them.

 

[DomainVP]

3000 domains is a lot of domains.

Even at GD discount price that is $24,000 annually on renewals... and that's just renewals.

Acquiring 'good' domains at auction takes a keen eye, lots of experience, and at least $20 per domain minimum.

I'm sure they negotiate every sale according to the domain to get the most value possible.

Conversely some people keep small portfolios of high value domains.

 

[Mikeross1]

I see, but are they high volume at a low price or low sales at a high a price? Where do you think they sell and the avg sale price. My guess is Godaddy auctions. My other guess is they buy for $8 and sell for $100, but a thousand times in a year.

 

[korganian]

Actually, the rule of thumb has always been that sales from big domain portfolios tend to be between 1% to 2% of the portfolio per year. There is no way to pay your renewals if you sell for only $100 per domain.

 

[domeen]

end-user sales. you only need to sell 20 for $5000 a year
+ you make probably some parking money, let say $20000 a year to be modest.
with this number 3000+ - domains you can wait for end-users come to you. just but for sale - sedo etc..

 

[gilescoley]

There are people that say they make 100K a year in sales, but what you dont here is how much they spent on buying names

Spend decent money o decent money and they are way easier to sell, if you are going reg $10 names, you will always struggle to make a profit

Buy names on the aftermarket, you will have a much higher success rate

 

[Kate]

There are few people that make that kind of money with domain names. So they are not representative. In fact the vast majority of domainers are effectively losing money.
That being said, domaining is like any business: if you do it seriously, with dedication, the right skills and a sound business plan, you can make money too.

 

[Mikeross1]

Korg- this is what I'm seeking. Hard data. 1% - 2% sounds right since its a good portfolio. I was able to calculate Sedo's sales rate at 1 out of every 450 domains sell. 18 million domains divided by 40,000 sales a year. That is less than half a percent sell if you were just on Sedo.

 

[domeen]

Korg- this is what I'm seeking. Hard data. 1% - 2% sounds right since its a good portfolio. I was able to calculate Sedo's sales rate at 1 out of every 450 domains sell. 18 million domains divided by 40,000 sales a year. That is less than half a percent sell if you were just on Sedo.

well yeah, even 0,5% sales of 3500 domains, you still sell 17-20 domains a year. Even at high end-user levels.

 

[gilescoley]

You are looking far deeply into the stats, you have to look at a lot of things when it comes to stats, not just how many sold out of the total number listed

Name quality
prices they sold for?
Price they bought the name for?
Where else were they listed?
are they keyword or brandable names?
How long have they been listed? Some sit there for 10 years before they sell? Are you willing to be that patient, you might have to be with hand-registered names

If you want to make money in this game, a better strategy would be

Research some good names in a niche you know
Dont hand-register names for $10
Find the names that will sell in that niche, get the best keyword names (not names you like the sound of)
Email the owners of the names and make an inquiry
Bargain them down as much as you can
Rather spend $250-$500 (or more if really good quality) on a decent name than buying 25 hand-registered crap names

Research potential end-users
Dont just email the first email address you find on their website or the WHOIS address
Find the decision makers at the companies using bloomberg, Yahoo Finance, LinkedIn, google and loads of others
Email them and see if there is any interest

When you make sale, invest that money and buy more quality names sand repeat

 

[Mikeross1]

Giles- you make a lot of good points and I'm learning a lot. However you are assume one thing that is deeply flawed in your thinking...you are assuming hand registered names are worth nothing. You are assuming I'm an average person...how do you know what my names are? Maybe I've worked in marketing on Madison Ave for 10 years..maybe my IQ is 150 and I go to Harvard. Again you make a lot of good points , but don't assume hand registered name are crap.. You would be suprised what is out there...do be so negative.

 

[imadoer]

Giles- you make a lot of good points and I'm learning a lot. However you are assume one thing that is deeply flawed in your thinking...you are assuming hand registered names are worth nothing. You are assuming I'm an average person...how do you know what my names are? Maybe I've worked in marketing on Madison Ave for 10 years..maybe my IQ is 150 and I go to Harvard. Again you make a lot of good points , but don't assume hand registered name are crap.. You would be suprised what is out there...do be so negative.

You can make money off a hand reg. i do. but most good domains are taken you will get more bang for your buck buying better quality domains from the after market. they are much easier to trade since others are willing to pay for them. it took me a long time to learn that. and most new domainers are blinded by cheap $8 reg fee domains.

 

[Mikeross1]

Ok fair enough, makes sense. Now since the size of the Internet is growth exponentially...what will it market look like by 2020 or 2025..Will two-word .Coms even be left by then? Maybe the smartest thing is to hold for 5 years....

 

[imadoer]

If you can predict that answer you will be a millionaire my friend

 

[Mikeross1]

Amen

 

[imadoer]

Ok fair enough, makes sense. Now since the size of the Internet is growth exponentially...what will it market look like by 2020 or 2025..Will two-word .Coms even be left by then? Maybe the smartest thing is to hold for 5 years....

if you hold for 5 years what are you going to do to make money in the mean time?

thats what you need to figure out...

speaking of money i need to get back to my grind and make some good luck man

 

[Mikeross1]

Not to brag at all, I have a 6 figure MBA finance job...that's how..I work 5 days a week in an office.

 

[imadoer]

if i stay on my current path that i'm on i will make six figures this year too from domains

 

[indiegrind]

I started this year with about 80 names and I just hit 400 names, 85% handregs. Most of my domains have been acquired since June. I dont spend alot on acquisitions and only have about 6 names I've spent over $100 on. None over $750. I dont have any whopping sales, but I try to get at least $1200 on every name , even reg fee names. I've sold two regfee names for 5k in the the last few months.

I've made about 22k in total this year and I've spent around 6k on domaining related costs. I have a business bank account which all domaining related expenses and sales go back into and I plan not to touch it for anything else until I have 100k in it.

All my names are make offer, and all listed on all major marketplaces.

I want to grow my portfolio significantly as long as I maintain profitability and quality.

I project that I can hit 100k figure with 2k names if I maintain my strategies. 100k(after costs) is my target goal

 

[Mikeross1]

if i stay on my current path that i'm on i will make six figures this year too from domains

Congrats

 

[Mikeross1]

I started this year with about 80 names and I just hit 400 names, 85% handregs. Most of my domains have been acquired since June. I dont spend alot on acquisitions and only have about 6 names I've spent over $100 on. None over $750. I dont have any whopping sales, but I try to get at least $1200 on every name , even reg fee names. I've sold two regfee names for 5k in the the last few months.

I've made about 22k in total this year and I've spent around 6k on domaining related costs. I have a business bank account which all domaining related expenses and sales go back into and I plan not to touch it for anything else until I have 100k in it.

All my names are make offer, and all listed on all major marketplaces.

I want to grow my portfolio significantly as long as I maintain profitability and quality.

I project that I can hit 100k figure with 2k names if I maintain my strategies. 100k(after costs) is my target goal

So $1200 is your min, what is you average sale price? What is your favorite place to sell at? Sedo , Godaddy?

 

[Kate]

At the end of the day, if you own quality names, you'll make sales.
Even when you do nothing to sell them. For example if you own LLL.com you will get inquiries and unsolicited offers every week. While many are from lowballers/domainers, there are people out there who are prepared to pay good money for good names.

If your portfolio is poor then you'll struggle to make sales, no matter how hard you try.

That's it, if you own a number of domains and never had any interest in several years, then it is a sign you are the only one who thinks they are valuable...

 

[Mikeross1]

Kate, good point. I'm new so only time will tell for me..I just think price is a factor especially if it's priced over $2500..

 

[domeen]

to end-user domain is worth what he or she is willing to pay. You can show me here some kind caculation formulas etc.. but fact is, if you have lets say 4000 domains, collected over years. and you but for sale sign on them for price $5000 you will get 20 sold a year. easy. I agree quality pays a role

And starting today, is very hard, if you don`t have huge budget. I would say its impossible.

I think I started 2002 with $200 or something like that.