Best Domain Sales Strategy in 2013!

[Federer]

Domain Sales is the largest driver of revenue for the majority of domain investors.
After having spent the best part of 5 years successfully acquiring and selling domain names, I am curious to see what works best for other investors when it comes to selling your prized domain assets. It's a fun business to be in and this thread could prove useful for new and experienced domain entrepreneurs alike.

1) For some, the best strategy is to acquire and "forget" the domain waiting the perfect end users, thus extracting maximum value.

2) Others are more proactive and send out emails to companies that feel could benefit from owning the domain name.
Note: I am not sure if the majority of registries allow the sending of commercial-orientated emails to parties that have not given their consent/permission to receive those offers - even if these are individual emails being sent out one at a time. GoDaddy for one do not allow it and have a tight anti spam policy, under point 11 here: https://www.godaddy.com/legal-agreements.aspx
"We do not tolerate the transmission of spam. We define spam as the sending of Unsolicited Commercial Email (UCE), Unsolicited Bulk Email (UBE) or Unsolicited Facsimiles (Fax), which is email or facsimile sent to recipients as an advertisement or otherwise, without first obtaining prior confirmed consent to receive these communications from the sender."

Would love to hear your comments/opinions on this point and if you know of any registries that allow sending of unsolicited messages, sent 1 by 1 to hand-selected companies. For domain investors that rely heavily on proactive selling to end users, this is a key point.

3) Other investors sell primarily to other domain name investors (resellers) through forums, brokers and other means.

4) Some entrepreneurs actually mix strategies between proactive selling, awaiting end user offers, selling to resellers and development.

We have all no doubt fine-tuned our business model over the years - without necessarily giving specifics, what works best for you in 2013?

 

[NPer]

It really depends what kind of names you have.

Someone whose "portfolio" comprises of 99.9% crap-should reconsider their strategy altogether.

If they have never made sales to cover expenses and to acquire better names, should probably first get a reality check before deciding on a sales strategy. They couldn't possibly have a clue as to a successful sales strategy which they could adopt.

Those who do have good names, and attract offers from time to time will either make sales or they won't. If they price cheaply, they can make sales faster-and usually a smaller profit So this is more about the person behind the names, and what they are satisfied with. What value do they see, etc. Are they realistic? Do they need the money badly and need to make sales to survive?

For me, I am satisfied with fewer sales, and being able to maintain and grow a smaller portfolio of good names. The majority of the names I have are from the aftermarket, focusing on certain criteria when it comes to choosing the domains I want.

In domaining, there is no such thing as a quick buck. Don't read too much in those "Showcase" threads that pop up often.

There is a skill that is required to choose the right names. Get this right- and you will do well. Because with every good name that you purchase, you increase your chances of enquiries/interest, which could eventually lead to a sale. E.g. if you have one good domain, perhaps you'll get inquiries, but the chances of a sale really depends on factors I already mentioned above. But buy 100 good names (vs 1 good one + 99 shit ones), inquiries would be more in total, and even if you had to close only one sale at a good price, you can renew your domains, and expand. This is the best strategy.

Basically: the most important thing is your Buying Strategy.

Don't be cheap, because it will cost you.

100 hand reg names x $9 = $900 wasted on reg fee names, and the bill next year is $900 again. No inquiries or interest in your names.

Vs.

2 good names x $450= $900 (hopefully you'd know what you doing with that $900). Renewal is just $18 should you not sell at all. Sell one for $x,xxx, and you can expand.

There really can't be a strategy for sales, if there is a poor strategy for buying names.

 

[FX]

^^^^^ excellent post ^^^^^ 3D

 

[-EM-]

Investing more money means higher risk, in both cases you can end up with loss.
From what I've seen Federer is doing what 3D says, investing more money on premium .info domains and reselling them for higher price, but in this kind of strategy you have to have a good amount of money to cover any loss, good (greater) knowledge in domain market and of course luck.
If you start with lower investment, the loss may be much lower and the sale performance will be as well lower resulting small income. This is how new domainers should start with.
I think there is no good strategy that can actually work for every one, till the moment a domainer is earning more money than he is investing no matter the amount of income, it is a good strategy. :imho:

 

[lincolndsp]

.com and only .com

 

[oldtimer]

The best strategy is not to be stubborn, but at the same time not to give up too fast either because sometimes you have to make your own path to success. You have to believe in yourself but not to the point that you start thinking that everyone else is wrong and that you’re the only one who’s right.

Keep in mind that some of the advice that is given on this forum is more for the benefit of the person who is giving it rather then the person who’s receiving it, so just because some people don’t agree with you doesn’t mean that you are doing things wrong.

As already indicated by Federer people have used different strategies to make it to the top so the best thing to do is to give your strategy a certain length of time to work, but if you haven't seen good results by then it might be best to reconsider your strategy and perhaps try to see what other people are doing who are successful.

IMO





-

 

[NPer]

Keep in mind that some of the advice that is given on this forum is more for the benefit of the person who is giving it rather then the person who’s receiving it...

I see that happening in the 'The Next Fad Showcase and Discussion" threads. These individuals who keep the juices pumping in those threads are the ones dishing out advice on what good names are. But outside of those threads, I don't think people would take their domain advice seriously. Which is why they stay in their comfort zone, and thus their advice remains limited and contained to that specific "niche"/"niches"- as they would like to call it.

BUT: I can't see members who give honest opinions based on experience to hand out "advice" to benefit themselves. For example, there is a reason why honest domainers would say not to reg shit and buy good names. I can't see how this serves me and the others who say this in our best interest? It's actually against our best interest as there would be more competition in the aftermarket, driving prices purchasing prices higher. :imho:

 

[GiftedDomains]

For me brandable .com names works best at the moment.
Lowest investment and risk, highest ROI. Most creative and fun niche too.
But i work a lot, search a lot, read a lot, before chosing names. And more patience is needed than for keyword domains and its more passive than proactive.

 

[SpareDomains]

1) For some, the best strategy is to acquire and "forget" the domain waiting the perfect end users, thus extracting maximum value.

This would be me. Been selling for 10+ years and the majority of my sales happen through direct contact from my own site. During this time I have developed quite a few websites which keep me busy and profitable so I can be more patient as I don't need the domain sales money to survive.

I have enough domains today from 1998-2013 to stop buying and keep me busy with passive inquiries/sales for a few years at least.

Problem I see with flipping good domains for chump change is over time as competition increases it's hard to replace those gems with similar quality so over time you degrade your portfolio quality and put yourself outta business. A lot of flippers also don't value their time. Selling a domain for $20 that you invested 5 hours into research/emails is a loss unless your happy with $1-$3/hour.
I'd rather keep busy building/promoting my developed sites to increase their revenue and any domain sales that flow in took zero effort/work besides parking it with a sales link to my own site, obviously this takes owning quality domains to receive a constant flow of inquiries.

As time goes on think I'm becoming more passive due to my websites income continually increasing which leads to less sales but higher margin sales.

 

[Name Trader]

.com and only .com

Whilst I might have a lot of sympathies with your thoughts, I think Federer has disproved this and made a tidy sum out of non-.com's. But you do need a lot of experience when doing this. Noobs should definitely stick to .com's

 

[hookbox]

Federer

I have read many posts from you and about you here at Namepros and know that when you speak most people listen. I feel like you are writing this post because you have seen the domain market taper off some lately and maybe you are searching for other sales options to help offset the lack of sales or slowing sales. Do you see the domain market dropping off or am I reading into this post to much?

 

[lincolndsp]

Whilst I might have a lot of sympathies with your thoughts, I think Federer has disproved this and made a tidy sum out of non-.com's. But you do need a lot of experience when doing this. Noobs should definitely stick to .com's

i see what you mean, and i also had nice sales in other extensions, i have been speculatingin .tv, .me, .xxx, .net cctlds like .za, .uk, .de, .us and others so i stick to what i really see: and responding to the OP's question about
BEST STRATEGY.
so for me so far the best is .com! from the volume of interest and sales. this is my safest, most consistent and BEST strategy in domain SPECULATION
even cctlds like .de, uk cannot compare to the liquidity of a decent .com from my years of speculating domains, so you have to have stellar domains in those to have some puny interest, whereas .com is like a safe haven in my domain book.

the rest is tactics, style (hold long vs flip) and pure luck

 

[alien51]

When you talk about "strategy", you first need to segregate individual circumstances.

A domainer who has no other source of income, and who is totally dependent on domain sales to survive, will have to come up with some ingenius draconian strategy that may not be applicable to others. A lot of times, people in this group use a strategy that is "not sustainable", and sometimes bordering to desperation (like global spamming just to peddle their list of domains).

Some people will tell you their strategy, but they come short of telling you their cashflow equation. It may sound good "in theory", but in reality, losses have eaten up on profits, and they could not duplicate their success which makes them a one-hit wonder.

A cashflow strategy should define how you will survive, if you don't make a sale for a certain period of time.

 

[eyedomainous]

With only 124 Thousand transfers, in 2013, -out of 146 Million domains, less than 1% of registered names sell each year. So the odds of selling a $450 aftermarket domain versus a $9 hand reg is statistically negligible.

Domains are a 'fishing economy', in a rapidly expanding cyber sea. So I prefer to fish with a wide (niche) net, than a few $450 dollar hooks in the water. Either way, the key to success is knowing Where to fish.

A tackle box with a few expensive lures is not the only, or necessarily the best, way to fish. Though I get the feeling folks selling those feathers, truly believe it is... and clearly would like those fishing with chum to stop, get on board, and buy.

Expensive lures are fun, but I'd like to see the numbers. (BTW, I don't think I ever spent $9 on a hand reg. I mean I just spent $2 for CyberSeaMan.com. To you, its a 'crap' domain, for me its a great marketing re-branding play, from "domainer".)

They way I see it, every "$450" domain was once a handreg... and when I look at the odds, my money is on a strategic handreg.

Yes, you do pick-up more crap fishing with a net -than a hook, but any good fisherman knows to use the by-catch as chum to attract the big fish.

[No, I'm not out of metaphors. I just don't want to go overboard.:wave: ]

Bottom line: I use a 'big net' strategy to get a foot in the door in a variety of markets -where I leverage names, in a number of ways, to bring value to the niche -drawing attention to the names, while generating revenue, until sold.

It really depends what kind of names you have.

Someone whose "portfolio" comprises of 99.9% crap-should reconsider their strategy altogether.

If they have never made sales to cover expenses and to acquire better names, should probably first get a reality check before deciding on a sales strategy. They couldn't possibly have a clue as to a successful sales strategy which they could adopt.

Those who do have good names, and attract offers from time to time will either make sales or they won't. If they price cheaply, they can make sales faster-and usually a smaller profit So this is more about the person behind the names, and what they are satisfied with. What value do they see, etc. Are they realistic? Do they need the money badly and need to make sales to survive?

For me, I am satisfied with fewer sales, and being able to maintain and grow a smaller portfolio of good names. The majority of the names I have are from the aftermarket, focusing on certain criteria when it comes to choosing the domains I want.

In domaining, there is no such thing as a quick buck. Don't read too much in those "Showcase" threads that pop up often.

There is a skill that is required to choose the right names. Get this right- and you will do well. Because with every good name that you purchase, you increase your chances of enquiries/interest, which could eventually lead to a sale. E.g. if you have one good domain, perhaps you'll get inquiries, but the chances of a sale really depends on factors I already mentioned above. But buy 100 good names (vs 1 good one + 99 shit ones), inquiries would be more in total, and even if you had to close only one sale at a good price, you can renew your domains, and expand. This is the best strategy.

Basically: the most important thing is your Buying Strategy.

Don't be cheap, because it will cost you.

100 hand reg names x $9 = $900 wasted on reg fee names, and the bill next year is $900 again. No inquiries or interest in your names.

Vs.

2 good names x $450= $900 (hopefully you'd know what you doing with that $900). Renewal is just $18 should you not sell at all. Sell one for $x,xxx, and you can expand.

There really can't be a strategy for sales, if there is a poor strategy for buying names.

 

[Name Trader]

@eyedomainous - so you park your domains like everyone else? Or perhaps you could explain in real words what "I use a 'big net' strategy" actually means.

 

[FPForum]

My advice..Stick with .COM

Prepare to see lots of promotion and jargon for upcoming extensions but don't fall for them. Newbie domainers should be sticking with the usual in 2013: Backorders, drop catching, forums, auctions and anywhere else you can find good names for good deals

 

[GiftedDomains]

even cctlds like .de, uk cannot compare to the liquidity of a decent .com from my years of speculating domains, so you have to have stellar domains in those to have some puny interest, whereas .com is like a safe haven in my domain book.

Except .de , i agree.

If you have the same german word with .com and .de , .de is better and the price is higher (sometimes much higher than .com) in Germany. Specially for local businesses who are not trading internationally. And sometimes even obscure german words sell with .de, whereas the same word wouldn't sell with .com extension here.

Problem is, lot of unexperienced non german domainers see some .de sales with high amounts reported and then start registering/buying english words with .de extension which are not used in Germany. Some english words are used here, most are not. And those few good ones which are used, are all taken since a long time.

 

[eyedomainous]

No, I don't park. No, I do not send spam/sales emails.

I'm not going to get into specifics.

I think the OP framed the discussion using 'real words'.:lol:

@eyedomainous - so you park your domains like everyone else? Or perhaps you could explain in real words what "I use a 'big net' strategy" actually means.

 

[Name Trader]

OK. Thanks for your help.

 

[Havela]

[No, I'm not out of metaphors. I just don't want to go overboard.:wave: ]

:lol:

I just want to point out that Federer is asking about sales strategy, not buying strategy, although I see that to some of you that is one and the same. I assume those who consider that the same thing belong in Federer's acquire and forget category, because then it is all about the purchase. Nothing that happens after the purchase will affect sales.

Personally I send out emails if I think the domains are good enough to be of interest to an enduser.

Btw, I think the 'acquire and forget' strategy is unsustainable from a cash flow perspective. An 'acquire and forget' person would have to lean on other income, like development, as FPForum says.

It would be interesting to know from someone who tried both strategies over time what gave the best overall profits. With a passive strategy the proceeds of each sale will be optimised (presumably), but there will be little replacement of inventory or influx of fresh investment money. With an active strategy each domain will sell for less, but inventory will be replaced more rapidly and hence give more overall sales.

 

[lincolndsp]

both depending on the domain: if you have faith in the quality and wide appeal of the name - hold for max passive return
if you think it's a liability - active flipping to dump it for fast cash

 

[biggie]

Problem I see with flipping good domains for chump change is over time as competition increases it's hard to replace those gems with similar quality so over time you degrade your portfolio quality and put yourself outta business. A lot of flippers also don't value their time. Selling a domain for $20 that you invested 5 hours into research/emails is a loss unless your happy with $1-$3/hour.
I'd rather keep busy building/promoting my developed sites to increase their revenue and any domain sales that flow in took zero effort/work besides parking it with a sales link to my own site, obviously this takes owning quality domains to receive a constant flow of inquiries.

.

:talk:

dude above drops science


some of ya'll better pick it up




but I think domain monetization is a bigger driver of revenue, which in turn, helps to deliver greater profit margins on domain sales.


imo...

 

[edomains.in]

many domain extensions would be launched in market soon and there could be two scenarios possible
one is craze level of premium domain would be decreased or increased.

 

[tjl92]

I think there is no good strategy that can actually work for every one, till the moment a domainer is earning more money than he is investing no matter the amount of income, it is a good strategy. :imho:

I agree!

When you talk about "strategy", you first need to segregate individual circumstances.

A domainer who has no other source of income, and who is totally dependent on domain sales to survive, will have to come up with some ingenius draconian strategy that may not be applicable to others. A lot of times, people in this group use a strategy that is "not sustainable", and sometimes bordering to desperation (like global spamming just to peddle their list of domains).

Some people will tell you their strategy, but they come short of telling you their cashflow equation. It may sound good "in theory", but in reality, losses have eaten up on profits, and they could not duplicate their success which makes them a one-hit wonder.

A cashflow strategy should define how you will survive, if you don't make a sale for a certain period of time.

DEFINITELY agree here.

 

[tjl92]

Domain Sales is the largest driver of revenue for the majority of domain investors.
After having spent the best part of 5 years successfully acquiring and selling domain names, I am curious to see what works best for other investors when it comes to selling your prized domain assets. It's a fun business to be in and this thread could prove useful for new and experienced domain entrepreneurs alike.

1) For some, the best strategy is to acquire and "forget" the domain waiting the perfect end users, thus extracting maximum value.

2) Others are more proactive and send out emails to companies that feel could benefit from owning the domain name.
Note: I am not sure if the majority of registries allow the sending of commercial-orientated emails to parties that have not given their consent/permission to receive those offers - even if these are individual emails being sent out one at a time. GoDaddy for one do not allow it and have a tight anti spam policy, under point 11 here: https://www.godaddy.com/legal-agreements.aspx
"We do not tolerate the transmission of spam. We define spam as the sending of Unsolicited Commercial Email (UCE), Unsolicited Bulk Email (UBE) or Unsolicited Facsimiles (Fax), which is email or facsimile sent to recipients as an advertisement or otherwise, without first obtaining prior confirmed consent to receive these communications from the sender."

Would love to hear your comments/opinions on this point and if you know of any registries that allow sending of unsolicited messages, sent 1 by 1 to hand-selected companies. For domain investors that rely heavily on proactive selling to end users, this is a key point.

3) Other investors sell primarily to other domain name investors (resellers) through forums, brokers and other means.

4) Some entrepreneurs actually mix strategies between proactive selling, awaiting end user offers, selling to resellers and development.

We have all no doubt fine-tuned our business model over the years - without necessarily giving specifics, what works best for you in 2013?

Haven't quite got a fine tuned system yet but this overview is very helpful @Federer Thanks!