$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?

 

[Mikeross1]

Who is that?!?

 

[garptrader]

$XXXX sales are not as easy as DNJ sales reports make them appear to be. If you reg hundreds of domains no one wants whether they be .COM or any new TLD, you may pay renewals for years and lose thousands of dollars before you realize how big a mistake you have made. As well, if you price domains above what anyone is willing to pay, you can also find yourself with inadequate sales revenue to pay renewals. Result - instead of making money, domains drain your savings year after year....

 

[Mikeross1]

$XXXX sales are not as easy as DNJ sales reports make them appear to be. If you reg hundreds of domains no one wants whether they be .COM or any new TLD, you may pay renewals for years and lose thousands of dollars before you realize how big a mistake you have made. As well, if you price domains above what anyone is willing to pay, you can also find yourself with inadequate sales revenue to pay renewals. Result - instead of making money, domains drain your savings year after year....

Agree 100%..that's why I think if you have a portfolio of 200 domains, one might be better off developing the 20 top names and selling or dropping the rest at renewal time... Build real value for consumers via developing websites ... The name "Google" means nothing and not a good name ,if you think about it, in till you realize what Google can do and the massive value the website provides.

 

[nothere]

...he knows a few gentlemen that make $100k a year flipping domains with a portfolio size of 3000 domains...

Not sustainable. Maybe for a year or two and that can be done by just selling a few names.

 

[WPM]

Mike,

Your trying to justify the perceived reality with numbers. You're right, the numbers don't lie... when there is a buyer willing to buy.

Point being, you only know how much you want to sell a domain for, the question is, "What could you really get?" The bottom line is a domain is worth what someone is willing to pay for it.

If you are going to undercut your possibilities of long term income by selling 1000 domains for $100 each just to make $100k a year... what happens when you run out of domains and your costs increase as you turn into the guy trying to buy and flip domains for $100 a pop?

If your portfolio is solid, or partially solid, and you have that good job... develop them make a business and have an exit strategy.

You did say you had a MBA... right? I thought that was business 101...

Note: Graduated with PHD and was Phi Beta Capa Uass from UofHK.

Develop them man!!!! Sell a few... develop the rest. Put people to work, get tax breaks... incorporate man!!!!!!!

Regards,

WPM

 

[domeen]

Eyed- the sales price distribution curve which can be found on Sedo Market Research shows its very hard to sell a domain over $2,000. But very easy to sell a domain for $100. Therefore if you have 1000 hand reg and sell them for $100 each on a 7 day auction that's $100,000... Isn't that more likely than trying to sell for $3500 a piece? You would need 29 sales at $3500 to make $100k...not likely...am I right?

I think with hand regs today , you can`t do it.
You could maybe do it with drop catched domains, if you know what you are doing. $60 each or so.

I still say, if you have 3500 normal quality domains, you will sell 20 of them a yearfor $3500 each, thats a fact. Maybe even more.

 

[gilescoley]

Eyed- the sales price distribution curve which can be found on Sedo Market Research shows its very hard to sell a domain over $2,000. But very easy to sell a domain for $100. Therefore if you have 1000 hand reg and sell them for $100 each on a 7 day auction that's $100,000... Isn't that more likely than trying to sell for $3500 a piece? You would need 29 sales at $3500 to make $100k...not likely...am I right?

As @domeen mentioned above, this is very, very unlikely

If you have 1000 hand-regged domains, the chances of you selling 50 of them for over $100 on a Godaddy (or any other platform) auction is unlikely, let alone all of them

Now if you purchased 15-25 really good names on the aftermarket, auctions or drops and sold them for around 5K-10K each, and those prices are a lot easier if you buy quality names, then that is a lot easier way of reaching your 100K target. Just be prepared to pay $500, $100 or $1500 for a name, it might feel like a huge risk, but if you have researched the name, previous sales, potential end-users etc, then at least you will feel more confident in selling it, rather than a name that has been available all along

Its just really hard to flip hand-regged names, because these names have been available for a long time (most of them anyway) and you have to wonder why noone has registered, usually the answer is obvious

Just my 2 cents worth again....

 

[NamespaceX]

Sedo's domain sales price 'sweet spot', of $100, is not uniform across all sales platforms. Some domain auction events, of 100 names, found the sweet spot to be around $3k. But they had an established brand, knew their target audience, how to structure, and market, the campaign, and had crowd-sourced quality names. But, even with all that going for them, the Sell-Through-Rates were normally between 60% to 80%.

If you don't have all that going for you, perhaps its best to focus on a handful of your top names... and their Top 10 prospects.

Eyed- the sales price distribution curve which can be found on Sedo Market Research shows its very hard to sell a domain over $2,000. But very easy to sell a domain for $100. Therefore if you have 1000 hand reg and sell them for $100 each on a 7 day auction that's $100,000... Isn't that more likely than trying to sell for $3500 a piece? You would need 29 sales at $3500 to make $100k...not likely...am I right?

 

[Name Trader]

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..

Price is always a factor when selling a domain. You can easily sell a $100k name for $10k. But it's much harder to sell the same domain for $100k. Price is usually in they eye of the beholder.

 

[Tank]

They could be doing a number of things, I don't bother trying to figure out what the big guys are doing anymore, seems to me it is like Realestate agents; some are moving billions per year, some are moving thousands per year. For the most part they are trying to use the same methods but the ones moving thousands per year cant afford to optimize the methods to work as efficient.

My plan involves losing the first year then learn from it. I am exceeding my expectations so far..lol

 

[Brandon.Domains]

With 3000 domains, he could be earning $100k a year from clicks on his domains? + the odd sale here and there.

If we are talking gTLDs nowhere even close. Parking revenue for gTLDs is still minimal but will rise a lot as people get familiar with the new domains.

Brandon

 

[Brandon.Domains]

Don't go hog wild on the new extensions until you know how much the registrars are going to promote them outside of the forums/web. I have seen very little promotion in the mainstream media to program the average joe. It's going to take billions and a few years.

Don't forget that every single registered and actively used domain is also promoting the extension. I think this is much more powerful advertising than any campaign a registrar could run.

Brandon

 

[WPM]

Don't forget that every single registered and actively used domain is also promoting the extension. I think this is much more powerful advertising than any campaign a registrar could run.

Brandon

I agree... with domainers, not the general public via mass media.