Unstoppable Domains .crypto

(Almost) A Decade of Domaining...

Located in Ask Me Anything (AMA) started by Nikul Sanghvi, Dec 23, 2017.

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  1. Nikul Sanghvi

    Nikul Sanghvi hypernames.co ICA Member Gold Account VIP

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    Thank you @Jv1999 @boker @vravis9 @domains21 @frank-germany @Kenny @lolwarrior @Doron Vermaat @AbdulBasit.com @Dave @DomainBarracksRob @Kazzia and everyone else!

    Writing is a slow and difficult process for me... but the feedback always motivates me to keep going :)

    Good point Doron - that's correct, those were all from the old Escrow integration. I swapped across to Escrow Pay last month and haven't had any BINs since then. Escrow Pay also looks slicker and a lot more buyer-friendly.
     
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  2. Kenny

    Kenny Member Services, NamePros Super Moderator Gold Account VIP ★★★★★★★★★★

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    Hopefully, without coming off as a fanboy, you are gifted.
    Please keep it up.

    Peace,
    Kenny
     
  3. Isibor Imieka

    Isibor Imieka Established Member

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    Nikul should write a book "The beginners guide to domain investing", It will be a best seller for sure. Thanks Nikul for your immense contribution to the community.
     
  4. Domaining Ocean

    Domaining Ocean Top Member VIP

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    Thanks! @Nikul Sanghvi for sharing your amazing domaining journey with us. I hope this will help many beginners like me to learn alot from your valuable content.

    Have a nice day😊

    Best Regards,
    Mohit
     
  5. AYORich

    AYORich Established Member

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    Thanks @Nikul for this detailed write up. I really enjoy each words,very informative , you are a great writer ,keep it up.
     
  6. Firon

    Firon New Member

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  7. Janom

    Janom Established Member

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  8. NickB

    NickB Aka MrAcidic Gold Account VIP

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    Thanks for sharing!

    Great read and will be coming back to read this regularly

    Must read for anyone who is serious about sticking around the long term........
     
  9. memaniacs

    memaniacs Established Member

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    I know there must be lot of information on this thread about registering a domain and putting it on sale. but if you can answer my question or just provide me link to read that article here. my question, can you put domain on sale just after registering it on any registrar, I read somewhere that you have to wait 60 days before selling, In that scenario I cannot put that domain on sale? or if I can what if someone bid on that, what will be the result if something happen like this.
    thank you
     
  10. hal

    hal Established Member ★★★★★★★★★★

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    I think what you are referring to, is that for some extensions like .com/.net/.org you cannot transfer to another registrar within 60 days. So if you sell the domain within 60 days of registration or transfer you have to push it to their account at the same registrar.


     
  11. Sanjeev Tiwari

    Sanjeev Tiwari Established Member

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    Awesome post sir, Thanks for writing this appreciate your efforts!
     
  12. Ntmt

    Ntmt Established Member

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    @Nikul Sanghvi , thank you for sharing such valued info in such detailed way! Do you plan to write mentioned follow up?
     
  13. Nikul Sanghvi

    Nikul Sanghvi hypernames.co ICA Member Gold Account VIP

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    Thank you to those of you that have been following this thread and welcome to anyone reading this AMA for the first time.

    I’d had a few people reach out to ask for an update, so I wanted to give a general overview and talk about how 2019 performed. I’ll also try to connect back to the journey so far, to give context where I can...

    So without further ado, here’s a summary of my trading last year:

    • $108k of total revenue
    • Minus $11k in commissions and fees
    • Minus $35k renewals, further registrations and acquisitions
    • Net approx $60k (before tax)
    • 48 sales in total (an average of 4 per month)
    • 25 sales via DAN ($36k) - mostly MakeOffer
    • 9 sales Afternic ($41k) - mostly BIN
    • Remaining sales were inbound via Efty, Emails and DomainAgents... one via outbound email
    • Extensions: 43 .CO, three .COM, one .UK and one .EU
    • Average sales price of $2252
    • Average hold time per domain sold was 21 months (at least 1 renewal)
    • Average purchase price of domains sold was $78 (removing a $2k outlier, this drops to $35)
    • Average portfolio size around 1200 over the year, now at 1500
    • Annual sell-through rate at 4%

    Below, you can see how 2019 stacks up against the previous two years:

    [​IMG]

    Let's dig into each year in a bit more detail...

    2017 and earlier

    Prior to 2017, my portfolio size was only a few hundred domains. I hadn’t bought many domains but my acquisition costs per domain had also been higher than at present (mostly between $500 and $10k).
    My spend across 2015 and 2016 had been around $175k, but I hadn’t really been buying smart.

    (You can read more about 2009 to 2017 here: https://www.namepros.com/threads/almost-a-decade-of-domaining.1056328/)

    Despite the heavy spending on acquisitions, I hadn’t had a single sale in the previous year (2016).
    I didn’t want that to happen again, so I looked for something that would create some regular cash flow, but with lower upfront risk. I had the bandwidth, so also didn’t mind putting in any additional hours. Having had some success with .CO domains, I decided to try out bulk buying using discount coupons.

    Moneyman[.co] was one of the few hundred .COs bought at $1.50 each. It was bought in July 2017 and sold a few months later in October.

    The image below shows 2017 broken out further (ordered by sale date, descending):

    [​IMG]
    2018

    By mid-2018, the discounted .CO registrations had continued to make a steady stream of sales. I'd spent $9.5k spent on 1262 .CO handregs and had already reached around $37k in sales and a profit of $23k.

    (You can read more about this here: https://www.namepros.com/threads/almost-a-decade-of-domaining.1056328/page-3#post-6786857)

    That experiment went on to generate an additional $41k of sales without any additional spend, bringing the total revenue to $78k. Taking away commissions, the process yielded $68k of pre-tax profit from the initial investment of $9.5k.

    September came quickly, and Neustar killed off the discount strategy with the introduction of the premium tiers on .CO. By then, I wasn’t registering .co in volume anymore but it suddenly became a lot harder to buy good quality .CO domains on the cheap.
    [​IMG]

    2019

    By early 2019, my portfolio had reduced from a peak of 1700 down towards 1000. By the middle of the year, I’d reached around 800 domains.

    I had also started buying the premium tier .CO to test the water. By April 2019, I’d spent around $6k across 50 domains at $120(ish) each… of those, only three have sold so far, generating $13k in total. It was still profitable, but the pricing tiers had seriously shifted the margins.

    I continued to test out discounts for .CO but they had been limited to only non-premium domains.
    Since the premium tiers kicked in, I’ve registered around 600 .CO domains between $3 and $7 using discount codes. Out of those, I’ve only sold 1 so far! So although it’s still possible to buy hundreds or thousands of .CO for a few dollars each, their quality has drastically reduced compared to doing the same in 2017… and this is reflected in the overall sell-through rate.
    [​IMG]
    My sales volume in 2019 was higher than 2018 but I also saw a dip in average sale price.
    • In 2018, it was $2670 - removing the outlier $19k sale brings it down to $2144.
    • In 2019, it was $2252 - removing the $15k sale and $9k sale brings it to $1809.
    This was partly deliberate: after analysing the deals I couldn't close or lost in 2018 due to countering too high or sticking to a BIN, I knew I was leaving money on the table. In 2019, I started to lock in more sales and accept slightly lower offers - especially for inventory that I wouldn't miss.
    HOLDING DURATION

    Below you can see holding time (Number of Months) for the 90+ domains sold over the last three years.
    • Half of all domains sold were held for less than a year.
    • 80% of all domains sold were held for just under two years.

    [​IMG]

    When I split this out showing sales grouped by year, it’s clear that sales in 2019 primarily originated from purchases in 2017 and 2018.

    [​IMG]


    WHERE DID SALES ORIGINATE FROM?


    The image below shows revenue (2018 and 2019) from the four main sources for me. I also had sales from inbound emails, DomainAgents and one from outbound, but removed them for a cleaner overview.

    [​IMG]

    In 2017, I was using Sedo landers across most of my domains. And in May 2018, I began using Efty servers. I detailed my experiences of the first 100 inquiries here: https://www.namepros.com/threads/almost-a-decade-of-domaining.1056328/page-4#post-7053359

    Almost a year later, I started testing out Undeveloped (now DAN.com) landers too. I think they perform very similarly to Efty, but take up less of my time in negotiations and the sale process. In return, you lose the information about the potential buyer that comes through Efty (such as telephone and email) - and the ability to engage in a deeper dialogue through email and phone.
    It’s an interesting trade-off - but my time commitment to domaining had started to reduce, so it was worth it for me.

    Another interesting thing to note: after switching to DAN, I started to see more regular sales coming from Afternic. Using Google Analytics, I can see that at least three of the transactions on Afternic occurred immediately after a buyer had spent several minutes looking at the DAN lander. In all three cases, the buyer chose to pay a higher price for the safety of GoDaddy/Afternic (or other syndicated venue), instead of buying through DAN. I don’t think this is alarming, but does show the advantage of having a domain listed in multiple places.

    SALES MULTIPLES

    Lastly, a quick take on sales multiples - comparing the purchase price against the final sale price.

    Below are all of the sales across the last three years... I had to plot this out using logarithmic scale for clarity.
    The X-axis shows the purchase price. The Y-axis shows the multiple at which it sold (5x, 10x, 100x etc).
    In top left for example, you can see Moneyman bought for $1.50 and sold for $1600.
    In the bottom-right corner, you can see data dot science - which I bought for $12k and sold for $12.5k.

    [​IMG]

    In the past, I’ve tried to use a tiered structure based on the acquisition price - https://twitter.com/hypernames/status/1122780585125130245

    The table in that link is outdated and needs some updating, but I’ve tried to show how these groupings manifest on the graph below:

    [​IMG]

    You can get a rough idea here…
    • The $1 to $6 promo codes sold mostly between 100x and 1000x
    • The $9 and $10 handregs sold between 50x and 500x
    • The three sales of premium tier .CO registrations were roughly 10x to 75x
    • All purchases that I’d made at $1k or more were generally grouped at 5x or less
    Keep in mind, that most of these sales came through make offer. So whilst they were sold within those ranges, they were priced above those ranges to allow room for movement.

    There’s a lot of mess outside of these neat rings - so they’re not perfect as groups and there are always outliers. I don’t pick many names to be priced wildly outside of these ranges - but there are always a few in play. You can’t rely on them, but if they sell, it’s a great outcome. I tend to pick names that I really like and then stick a solid BIN on them or hold firm if an offer comes. Qrypt, Qubit and Tempus are three examples of this working with a higher price which is outside the normal range.

    WRAP UP

    I’d love to conclude with some type of insight into what I’ll be buying over the next few years… but in all honesty, I don’t know at the moment.
    Premium .COM domains continue to accelerate in price and demand - getting further out of reach from the vast majority of small businesses and startups. In the void, there’s still demand from these startups and SMEs for alternatives like .IO and.CO, but a wider set of competing extensions (like .AI) and investors now vie for this space.

    Registries are also getting smarter, and continue to eat-into the margin that previously existed solely for domainers. The .CO registry’s premium tiers continue to evolve, and break away more frequently from the entry point prices that they’ve used until now. The lines between premium and non-premium have been pushed down so low, that the non-premiums are barely worth the risk, even at $3 each.
    These shifts will drive two important elements of my strategy going forward. Firstly, I'd like to focus back on quality over quantity - and secondly, the obvious need for me to diversify my portfolio.

    Thank you for reading! Wishing everyone health, happiness and plenty of sales in the year ahead!
    As always, feel free to comment or ask me anything below :)

    LINKS TO REPORTED SALES THREAD...


    Sales thread references (2017):
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-516#post-6211749
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-536#post-6334962
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-543#post-6378438
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-547#post-6395575
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-567#post-6484675

    Sales thread references (2018):
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-582#post-6544938
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-586#post-6566162
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-615#post-6742809
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-622#post-6787370
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-626#post-6800600
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-628#post-6815419
    https://www.namepros.com/threads/gaya-dot-co-sold-for-2500.1095910/
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-637#post-6863667
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-643#post-6899589
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-669#post-7017318

    Sales thread references (2019):
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-692#post-7137179
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-698#post-7168378
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-706#post-7209959
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-713#post-7252044
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-725#post-7311390
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-736#post-7376284
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-749#post-7447361
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-756#post-7500272
    https://www.namepros.com/threads/report-completed-domain-name-sales-here.83628/page-765#post-7572842
     
    Last edited: Jan 6, 2020
  14. Ntmt

    Ntmt Established Member

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    Thanks for your detailed summary of .co experiment, I was one who waited for this post.
    A couple of questions from me:

    1. I noticed you had no sales on Sedo at all in 2019. Do you have any suggestion about the reason of this?

    2. Your sales at Dan started only after your switched to their servers. We're your portfolio listed at Dan before this switch?

    3. Do you plan to invest in premium .co?

    4. Do you see any value in non-english single word .co? What about surnames and given names in .co?
     
  15. Nikul Sanghvi

    Nikul Sanghvi hypernames.co ICA Member Gold Account VIP

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    Thank you! Answers below:

    1. I had nearly all domains listed on Sedo in 2019 but did not use Sedo landers. Without the landers, Sedo doesn't produce any sales for me.

    2. I didn't have any domains on DAN until I started using their landers.

    3. I have been buying some premium .CO domains but as mentioned in the post, they haven't produced the return I expected for the higher price point.

    4. Yes, I do value in some non-English words and certain names - but it really depends on the word and the surname. If it's a surname that has a range of businesses (end-users) using the same name, then yes. The key focus across most of my buying has been looking for domains that have a decent size pool of commercial end-users who might be interested.
     
  16. Doron Vermaat

    Doron Vermaat Co-founder, Efty Efty Staff PRO VIP

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    Best NP post of the year! Thank you for sharing with us Nikul.
     
  17. YairDD

    YairDD Established Member VIP

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    +1
    Thanks for that!
     
  18. vravis9

    vravis9 Top Member VIP

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    Thanks for your sales information and great analysis...

    I see you took time to put all in detailed graphs and stats...that is not required but adds more authenticity to your words. Thanks for your efforts.

    I want to know... diversify means what other extensions you are looking into or already went ahead with...

    Do you have any names in
    .TV/.in ??

    Do you plan to use payment plans for your names...if already used did you see any improvement..

    Thanks,
    Ravi
     
  19. Nikul Sanghvi

    Nikul Sanghvi hypernames.co ICA Member Gold Account VIP

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    Thanks Ravi - for now, diversify simply means reduce the weighting of .CO - it's above 90% of my portfolio. It'll definitely include .COM but I don't know what else yet. And I don't think I have any .IN or .TV at the moment.

    Re: payment plans - yes I have used them via DAN. I kept them relatively short (3 or 4 months) for domains above a threshold of $1950. This year, 5 sales have come through payment plans (total of $8.9k). What I don't really know is whether the buyer would have chosen not to buy the domain if the plan wasn't available or whether their offer would have been lower.
     
  20. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    Wow!!!!!

    I am in total awe of the depth you shared, @Nikul Sanghvi

    So many aspects so interesting - I particularly liked the data on holding time and where the names sold at, and the scatterplot re acquisition prices and sales price ratio.

    So you are currently very heavy in .co and planning to diversify somewhat. Is the model to get really expert In one area that you feel has great potential and opportunity, and then after that has been successfully done diversify into other areas, one you recommend to others?

    Thanks again for sharing all of this with us.

    Bob
     
    Last edited: Jan 6, 2020
  21. wwwweb

    wwwweb Top Member VIP ★★★★★★★★★★

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    Hands down one of the portfolio analysis, and sales reports I have ever seen.

    Are you putting 100% of your profits back in, including renewals, or are you taking a % off the table?
     
  22. Sasan

    Sasan Established Member ★★★★★★★★★★

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  23. Joshua Harding

    Joshua Harding AssetReturns.com Blue Account

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    Insanely valuable stuff, Nikul. Very impressive, honest, and candid.

    Wishing you further success in 2019!
     
  24. wwwweb

    wwwweb Top Member VIP ★★★★★★★★★★

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    It’s 2020 now...
     
  25. Joshua Harding

    Joshua Harding AssetReturns.com Blue Account

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    Woops! Classic turn of the year mistake - forever immortalized :xf.smile:
     

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