$500 for a $1k domain VS many $8 for $300 domain?

[bluemeteor]

I was on an auction today. So I had this question.
Is it better to pay $500 or so to get a domain may probably sell for $1k or even $800?
Or get a dozen of $8, some of them may sell for low $XXX?
Generally speaking, no extreme cases. no shits, no blue diamonds.

 

[karmaco]

I would not pay $500 for a single domain unless the ROI was way higher than that. Is it possible you are underestimating it?

 

[Mister Funsky]

500 domain should yield 5x at a minimum or leave it alone...I would not spend 500 unless it would bring me a gross of 5,000. In your pricing scenario above, I would take the dirty dozen...

 

[bluemeteor]

I would not pay $500 for a single domain unless the ROI was way higher than that. Is it possible you are underestimating it?

Just an scenario to ask the question. The actual auction was ended with a little less than $100. My estimate was the domain can be sold for 300 easily. 600 patiently. I only bid to $40

 

[xynames]

It depends on the name(s). Most of the $8 names you buy will not even be worth $8. on re-sale. It’s not a sure thing that buying at the bottom will be profitable.

This supposedly smart guy bought 4600 names for a couple dollars each
https://www.thedomains.com/2017/04/19/ali-zandi-regged-4600-domains-com-promotion/
And subsequent articles indicated that he let them all go worthless.

 

[bluemeteor]

It depends on the name(s). Most of the $8 names you buy will not even be worth $8. on re-sale. It’s not a sure thing that buying at the bottom will be profitable.

This supposedly smart guy bought 4600 names for a couple dollars each
https://www.thedomains.com/2017/04/19/ali-zandi-regged-4600-domains-com-promotion/
And subsequent articles indicated that he let them all go worthless.

Thanks for the heads up for all newbies. That's true only the best names sell. Those medicores are not craps, but they couldn't attractive ppl to pay $100 for them, or not fast enough. So they stay there to drain your money year by year. That makes you lose money. So I have many uncertain names in my list.

So @xynames do you suggest it's better for newbies to buy some hot "guaranteed" names to sell for double price than try to hand register some uncertain names?

 

[IMEZI]

Win or loose, the most precious is the experience through winning or loosing, so i will suggest take 8$ each and buy hundred of it. You will learn and experienced by yourself, sharpening your intuition and off course you will also learn to work hard to earn it.

 

[Recons.Com]

Factor in expected sell-through %, renewals for 1 domain vs many, acquisition cost and final sale price.

Let's say $8 name has 0.5% sell through and you need 200 of those to make 1 sale per year, that is $1600 in renewals and $1600 in acquisition cost. So you need to sell for at least $2000 for the investment to make sense. If you price at $300, you need sell-through of around 4% which is hard to achieve regardless of your price point within $xxx.

With $500 names, you'd still want to be able to sell at mid $xxxx, not at $1000 with 1-3% sell-through ratio.

 

[Joe N]

It depends on the name(s). Most of the $8 names you buy will not even be worth $8. on re-sale. It’s not a sure thing that buying at the bottom will be profitable.

This supposedly smart guy bought 4600 names for a couple dollars each
https://www.thedomains.com/2017/04/19/ali-zandi-regged-4600-domains-com-promotion/
And subsequent articles indicated that he let them all go worthless.

Do you have a link to any of the subsequent articles. I was really curious to hear how that experiment would go.

 

[bluemeteor]

Factor in expected sell-through %, renewals for 1 domain vs many, acquisition cost and final sale price.

Let's say $8 name has 0.5% sell through and you need 200 of those to make 1 sale per year, that is $1600 in renewals and $1600 in acquisition cost. So you need to sell for at least $2000 for the investment to make sense. If you price at $300, you need sell-through of around 4% which is hard to achieve regardless of your price point within $xxx.

With $500 names, you'd still want to be able to sell at mid $xxxx, not at $1000 with 1-3% sell-through ratio.

Thank you for sharing the sell-through ratio. It make sense why end user price is ten times of reseller price now.
If I buy $500 to sell for 1k with 4% sell through ratio. It would take me 2 decades to make back investment before making pure profit. Oo

 

[xynames]

Do you have a link to any of the subsequent articles. I was really curious to hear how that experiment would go.

You had to search carefully for different mentions of how he let thousands of domains go subsequent to his buying those 4600.

Here is one passing mention to dropping 1500, presumed .xyz ones
http://targetdomain.com/tag/ali-zandi/
And there were other mentions in interviews he gave.

 

[xynames]

Thanks for the heads up for all newbies. That's true only the best names sell.

So @xynames do you suggest it's better for newbies to buy some hot "guaranteed" names to sell for double price than try to hand register some uncertain names?

As I wrote before:

Yes, too many new domainers jump on a variation, such as the singular or the plural or adding or removing a letter, or adding or removing a word, or changing the order of the words, or a different extension, of some name that sold for a lot in the past, thinking that the variation that has been sitting unregistered all these years must be worth something too. Brandables aside (which are hit or miss anyway), It ain’t necessarily so!

bottom line: picking the right domain is what it’s about not assuming that buying at the bottom is a sure thing.

Another thing that happens is a newbie makes money right off the bat and then assumes that everything he touches will turn to gold. This may apply to AliZandi as much as to anyone who has achieved initial success.

 

[dragtastic]

I have been buying low XX to sell for mid XXX potentially.

I plan on eventually buying mid XXX but I'd only buy domains I feel could sell for low to mid X,XXX

 

[anantj]

And subsequent articles indicated that he let them all go worthless.

links to those articles?

 

[anantj]

You had to search carefully for different mentions of how he let thousands of domains go subsequent to his buying those 4600.

Here is one passing mention to dropping 1500, presumed .xyz ones
http://targetdomain.com/tag/ali-zandi/
And there were other mentions in interviews he gave.

The original article you linked to (4600 domains regged) were for .com domains. If he dropped 1500 .xyz, how is that relevant? The fasthosts promo ran in the last quarter of 2016 which means the domains regged would be dropping about now. The last mention of Ali Zandi in the link quoted above was in Jun, 2017 - far too early to be a legit claim of Ali Zandi dropping those 4600 domains

 

[DonDraper]

It’s not a sure thing that buying at the bottom will be profitable.

It depends if you did your homeworks

 

[Isac]

Depends upon situation . Suppose a person is having only $ 200 - $ 300 in pocket
.
For Newbies with very less experience, its better to get one domain ( like 4 letter for $ 150 - $ 300 ) and try to sell it.
.
After gaining experience it's to better to buy many domains including liquids also

 

[DonDraper]

For Newbies with very less experience, its better to get one domain ( like 4 letter for $ 150 - $ 300 ) and try to sell it.

For Newbies with less experience, its better to read as much as they cant find a reason to not register that name

Find hidden leverages (dont mean age, etc thats not hidden)
I mean Position, Better Alternatives, New Phonetic trends, etc.
Like in every other industry, i guess Domain Profit is a consequence of your Personalization, if you blindly follow what "generally" works you are condemned to Two Options: SPEND a lot of money investing in VALUE (that obv is not bad at all if you know what your doing) or FAIL.