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discuss Buying domains without a reason

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Amar D

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Hello,

I think that I have a problem. I'm buying domain names without a reason. I think this is some kind of addiction, like gambling/alcohol etc. Buying too much domains without using them, or success of sale them. But when I see some keywords in media, I'm instantly searching for domains with that kw to try to resell it. Sometimes I fu*k my whole salary on that. Do you have that kind of problem with domain buying obssesion?
 
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It's like gambling. You go to casino aparat, invest 10$ and maybe win 200$.
I sell domain that I paid 0.99$ for 400EUR. And then party goes on. I just start to buy domains, that I think it's smart to buy... but at the end they expire unsold. Money wasted.

1) Patience

2) Find a partner and don't buy a name unless you both agree.

3) Add up the money you've wasted. Stop buying and save your money until you can afford ONE good domain. Lot's of professionals willing to give advice when you need it but you have to ask.
 
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I only buy premium domains that will always have some intrinsic value. Occasionally I will hand reg lesser quality domain or buy some at auction in the XXX- XXXX range but those higher priced ones always require a lot of thought and planning to figure out who would be interested in buying for a higher price.

If you are spending $200 a month on rubbish domain bought on impulse, you need to stop. It is better to save $1200 over 6 months and buy 1 better quality domain that you can spend time researching before you buy.
 
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The worst thing is not to wish/dream any outcome. If you can't dream any positive outcome for yourself even if you want to dream, you can't have a reason to start over or to do particular things. It's a typical lack of motivation after the last loss. You feel you are just living, are doing random things without a particular motivation and reason in mind. If you are buying domains without a reasonable/common motivation (making profit) it's definitely more serious problem than making financial loss. You may be still under the effect of the last loss or possibly you may be tempted to hoarding of anything.

Hoarding is very common among males as we are hunters and GATHERERs. Hunting-gathering and hoarding are very related to each other. If we hoard enough, we won't have to hunt/gather any longer. I am a webmaster. I can't pay monthly for hosting. I tried for many times and ended up with buying for a year or longer if possible. Something forces me to pay for 3 years in advance. I paid even for 5 years in my early years. I have managed to control it a bit. I know something will go wrong in 3 years with any hosting and will have to look for another hosting before 3 years. Just an example to irresistible hoarding tendency in males.

Try to organize your domains. Create a simple spreadsheet that shows expiration dates, registrars, asking prices, extension, where you list for sale and any other detail you think it's important.
Then create another spreadsheet for your cash flows that shows projected inflows (salary) and outflows (renewal fees)
These 2 spreadsheets will help you a lot for numerous of reasons. Its biggest benefit is to answer inquires of possible buyers very quickly. Cash flow spreadsheet will help you to raise or lower prices confidently based on your need for cash.

If you have thousands of domains and will need to create big spreadsheets that are beyond your computer capability to open or will take too much time, then it's a different long story.

But the best advice would be to own less domains. Someone may own 10k domains and may sell a domain every day. It's not a sustainable business model for a one person company. Every domain is unique and requires special care. More than 200 domains is not easy to manage. Even if you are not a one person company and managing thousands of domains is not a problem for you, profitability of higher and lower priced domains is different.

Go for quality. Because quantity has higher competition.
 
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Even if you chase transfer deals it's possible to manage 10k domains by a one technically skilled person. Unfortunately most domainers I have seen on this forum and in other places are moderately computer illiterate. Most of them do domaining as a side business, are not full time domainers. So they do not have enough time to learn any computer skill.
This was one point when I said managing more than 200 domains is not an easy task.
Second point is;
You can't manage price updates, manual/direct sales and custom landing pages. You will eventually need to sell at marketplaces if you have more than 200 domains. Selling at marketplaces has advantages and disadvantages compared to direct sales.

More than 200 domains means a business model based on quantity. In my opinion it's more risky and offers low profit potential compared to less than 200 but higher priced, carefully picked domains.
Assume portfolio A has 10,000 and portfolio B has 200 domains.
Assume total worth of A = total worth B as a typical investor would have the same investment budget for domaining.

Problem starts here:
# domains in A / # domains in B = 50 = 10,000 /200
This means randomly chosen domain in B would have a 50 x price tag compared to a random domain in A.
Like, $500 vs $25,000 or $1,000 vs $50,000 or $ 3,000 vs $150,000 depending on total investment.

Questions:
1- Who will pay the renewal fees of extra 9,800 domain of the portfolio A ? 10,000 - 200 = 9,800.
2- Which is more likely? Selling a domain for $500 or $25,000 ?
If you say selling for $500 is more likely please think again about renewing extra 9,800 domains. 9,800 x $9 = $88k fees in renewal. Compare $500 in revenue vs $7,320 fee per month in renewals. You need to sell 50 x domains in portfolio A in the same time interval. In my opinion it's less likely. Because number of domain buyers is not too many regardless of the price.

You are artificially creating a problem and then trying to resolve it.

The only real time consuming part is acquiring. Managing is easy.

You don't have time, can't/don't want to hire a help?

1. Place all 10K names at 1 registrar.
2. Bulk upload into marketplace(s) with BIN prices.
3. Bulk upload to landing page provider service (or do it at the time of acquisition spending couple of minutes per name
4. Set auto-renew on names you are certain to keep

Enjoy it on autopilot, as most sales will come from BIN sales and spend 2-3 hrs/week responding to inquires, closing sales on offers etc.

As long as the quality of your names provide for sell through above around 0.4%, you'll be profitable. If you can reach 1% sell through, you will be making above $10K/month even after paying the renewals.

Again, I have just under 3000 names, I am spending maybe 1 hour/week renewing (not on auto on purpose), 1 hour responding to inquires etc.

Now, acquiring is different story. I spend almost 3-4 hours a day looking at the lists, bidding, listing at marketplaces etc.

I have algorithms in mind to save time on this phase too, but need to get to putting it into a task and ordering custom built scripts to handle this.

In short, managing thousands of names is easy, if you have organized it properly and are not chasing transfer deals. I'd rather focus on making 1 extra deal a year than run around trying to save $3000 on renewals.
 
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Because I heard or read somewhere average second hand domain price is around $500 in major domain marketplaces like sedo. It may be a false information.
Is the $8.29 normal price or after bulk discounts? The lowest renewal price I know is $8.99 at namesilo. The lowest transfer fee I know is $8.25 at name.com. So it's safe for me to take average renewal fee as $10 as there are too many registrars charge more than $10 for renewals.

I have Godaddy Domain Discount Club - DCC acount (costs around $120/year, if I am not mistaken, and there are coupons with discounts for this) and the renewals are $8.29 with no need for any bulk etc. But because of the DCC cost, it makes sense only if you have 500+ names. It is also must have if you are buying names at GD auctions and closeouts, as otherwise on top of the auction fee you have to pay 1 year renewal and you'd be paying extra $7/name.

Average price: could be weighed down by the fact that lots of people buy names at $1-3 at promos, and then try to sell within a year at any price.

If you have quality names and are long term holder, no point in doing this. I sold enough just in May, 2019 to cover the renewals for all my names for the year.

But, again, everything starts from quality names that make sense for a business to pay $xxxx for. Always, ask yourself this before buying and if you are positive that a profitable business can benefit from it, then buy.
 
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If renewal fee is $10 and average BIN is set to $1,000, the cost is 1% per year. You have to sell 1% of your domains just for break even.
100 domains x $10 = $1,000 in renewal fee. You have to sell 1 domain for $1,000 per year just to pay renewal fees of 100 domains. Or 2 domains for $500 each or one domain for $2k every 2 year.

If you have thousands of domains you will eventually be forced to price as low as possible for the cash need for renewals. Lower profits per sale will likely lead to bankruptcy in couple of years.

Renewal cost is very dangerous. It's wise to acquire only high priced domains to keep your - renewal fee / BIN - ratio as low as possible. $10 cost is 1% for a $1,000 domain, 0.1% for a $10k domain and 10% for a $100 domain. $10 is your fixed cost regardless of your BIN price.

0.4% break even is possible if average BIN is $2,500 with zero acquisition cost ($2,500 net profit per sale) OR $1k per sale if the renewal fee is $4.

I would say quality and quantity is what works really.

Scenario 1 - High Quality & Low Quantity


I know people who have done this and hit a dead end capital wise. You basically are using a lot of capital to acquire quality domains, but at the same time the average end user sell through rate is low. The good news here is renewal fees are not a major factor. The bad news is if you only have a handful of domains you can get stuck waiting with no capital coming in.

Scenario 2 - High Quantity & Low Quality

You own lots of bad domains, many maybe bought with coupon codes. While you might make a sale here or there, it is often not enough to cover renewal costs. The renewal costs become a huge financial drain.

Scenario 3 - Quality & Quantity

This is the ideal scenario in my view. You own a quantity of mixed quality domains.
You might have some amazing high upside domains, liquid domains, brandables, and many other types in different price ranges.

In this situation with variety you are likely going to have something that appeals to various buyers, which means you are likely to always have some capital coming in.

People who have been in the domain world for awhile, making consistent sales are likely using Scenario 3 now. It is what happens over time when you are making steady sales and re-investing. The sales justify the renewal fees.

Brad
 
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Just look at your portfolio and say I should sell something...
 
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Anyone facing this should do their finances on month to month basis, should only take a hour or two but will surely tell you where you stand.
 
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One example, how my brain works.
There are sites: fksarajevo.ba, tuzla-airport.ba, sarajevo-airport.ba

I've bought all .com variants of it. Why? It's a fu*king international airport in my home country, I think I someone will be smart at that airport and say "Most of airports are using .com domain, why do we use .ba, let's buy the .com"... But no, my plan fails.

FKSarajevo.ba is the no1 team in country going to Europe championship. Some foreign investitors own it, and I think they will be using .com variant. But no, fail again, they will not even answer to my email with offer with my .com variant.

I've enabled catch-all for all above domains. Got ton of mail for football, and this for airport with questions "where to buy ticket, how much costs" bla bla from real person. People are typing .com instead of .ba, but... no one has interres for .com :D

Jbg. da si kupio Zeljo.com sigurno bi bolje prosao :)
(this is a joke and only people from ex YU will understand)

Back on topic, little advice - do not buy any names related to this Balkan countries - BiH, Serbia and Croatia. It is a waste of time and money.
Albania and Montenegro are different story.
 
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The worst thing is not to wish/dream any outcome. If you can't dream any positive outcome for yourself even if you want to dream, you can't have a reason to start over or to do particular things. It's a typical lack of motivation after the last loss. You feel you are just living, are doing random things without a particular motivation and reason in mind. If you are buying domains without a reasonable/common motivation (making profit) it's definitely more serious problem than making financial loss. You may be still under the effect of the last loss or possibly you may be tempted to hoarding of anything.

Hoarding is very common among males as we are hunters and GATHERERs. Hunting-gathering and hoarding are very related to each other. If we hoard enough, we won't have to hunt/gather any longer. I am a webmaster. I can't pay monthly for hosting. I tried for many times and ended up with buying for a year or longer if possible. Something forces me to pay for 3 years in advance. I paid even for 5 years in my early years. I have managed to control it a bit. I know something will go wrong in 3 years with any hosting and will have to look for another hosting before 3 years. Just an example to irresistible hoarding tendency in males.

Try to organize your domains. Create a simple spreadsheet that shows expiration dates, registrars, asking prices, extension, where you list for sale and any other detail you think it's important.
Then create another spreadsheet for your cash flows that shows projected inflows (salary) and outflows (renewal fees)
These 2 spreadsheets will help you a lot for numerous of reasons. Its biggest benefit is to answer inquires of possible buyers very quickly. Cash flow spreadsheet will help you to raise or lower prices confidently based on your need for cash.

If you have thousands of domains and will need to create big spreadsheets that are beyond your computer capability to open or will take too much time, then it's a different long story.

But the best advice would be to own less domains. Someone may own 10k domains and may sell a domain every day. It's not a sustainable business model for a one person company. Every domain is unique and requires special care. More than 200 domains is not easy to manage. Even if you are not a one person company and managing thousands of domains is not a problem for you, profitability of higher and lower priced domains is different.

Go for quality. Because quantity has higher competition.

Thousands can be managed easily if one does not go chasing transfer deals and consolidates at 1-3 registrars.

I have nearly 3000 now, 2600+ being with GD and it is piece of cake to manage. Basically just renew in time and respond to offers.

Planning to get to 10k names some time in 2021.
 
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Excuse me. Can you spare some change for a .com??
16214826.jpg
 
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I'm buying domain names without a reason.

I didnt read the whole thread but....I do it almost every day!

Over the years, my impulse (or 'no reason' domains) have been some of my best sellers. If you have the domain buying (insight) gift of selection...go with it! Just dont invest too much until you determine if you have the natural 'gift'.
 
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Hello,

I think that I have a problem. I'm buying domain names without a reason. I think this is some kind of addiction, like gambling/alcohol etc. Buying too much domains without using them, or success of sale them. But when I see some keywords in media, I'm instantly searching for domains with that kw to try to resell it. Sometimes I fu*k my whole salary on that. Do you have that kind of problem with domain buying obssesion?
Yes, domaining become addiction and we keep on buying domains thinking if sales..
 
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why would you post your personal email address/s on a public forum?
It a random email address, not mine :D I'm saying I should stop to seek for short and cool email.
 
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Thanks for advice. All advices from you guys are good. Someone will google one day this topic, so it may be userful.
 
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Been in 'the phase' and reggd many crap names but i got NP forum at the right time. Read some really nice threads and discussions over here and that put some sense in to me.
Now i am more thoughtful before reg. a domain name.
 
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Hello,

I think that I have a problem. I'm buying domain names without a reason. I think this is some kind of addiction, like gambling/alcohol etc. Buying too much domains without using them, or success of sale them. But when I see some keywords in media, I'm instantly searching for domains with that kw to try to resell it. Sometimes I fu*k my whole salary on that. Do you have that kind of problem with domain buying obssesion?


I do dis too for exo. but i made a 2k sail and some random xxx sails to save me lol.

I realized from there that domaining is like a casino where you actually have a high chance to take profit!

so it means, you have to pick the correct domains... then it won't matter if you get caught in the endorphins and go on a mass-reggae / tower spree... because they'll eventually sail 4 profit. I mean, it's the best of both worlds, is it not? You feeding your gambling addiction + you making MONEY from "this gambling."

But you should also know when to stop. For example, if ur bank acct goes to negative, then don't buy anymore or even look at tower and then start concentrating on outbound.

I'm pretty sure you won't get a casino-like rush where you actually make money anywhere else but domaining. Crypto has the rush but... that's most likely gambling unless you know TA or are hodling long term. ^_^
 
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It is a serious question you raise @Amar D. I don't think that domaining is in the manual of addictions, but it could be. It has some features of gambling and game addictions, maybe others.

There is no one solution but I have found it helpful to set limits on amount I will invest or number of domain acquisitions until the next sale. I think it is also helpful to define at outset if you are in it as a hobby, part time gig or more. Keeping balance with other things in life is also important.

I personally have same framework as @MrAcidic. I am in it essentially as a hobby and invest only what I can afford to lose.

I think most of us have had the feelings you have. I hope you find solutions that work for you.

Take care,

Bob
Domain auctions on Godaddy, Dynadot, NameJet, SnapNames, Sedo is real gambling addiction.
 
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Wise man Kassey Lee, nice to meet you again. :happy: Still remembering your book edition series in dot.mobi with a good feeling.
Thanks. That loss taught me to focus only on .com.
 
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You can always register them to get your fix then cancel them.

From personal experience, Dynadot only gives a partial refund. NameSilo gives a full refund.

Refunds Rock!

Hope this helps. :ROFL:
 
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It's like gambling. You go to casino aparat, invest 10$ and maybe win 200$.
I sell domain that I paid 0.99$ for 400EUR. And then party goes on. I just start to buy domains, that I think it's smart to buy... but at the end they expire unsold. Money wasted.
 
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I live in Switzerland, my salary is 4900 CHF per month, so imagine to spend a lot of that money just on domains. Also using sometimes card of my wife, that's another 4200 CHF.

My first obsession with domains started in days of MSN (Windows Live Messenger) when you could create address with your domain eg [email protected], so I was buying a ton of domains and changing my MSN ID. I was always looking for beautiful email address to have.

I think I will start to use niceguy1996ch_Fu @ hotmail com to cure myself from that hahaha.
why would you post your personal email address/s on a public forum?
 
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It a random email address, not mine :D I'm saying I should stop to seek for short and cool email.
phewww! :xf.smile:

Was going to say that would not be a good idea and it might be a good idea to stop buying any domains for a while, not just "short and cool email" ones.....
 
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I love this thread because I too am caught up with these addiction .
But I think I have slowed down

after reading, and reading much article, I started being more addictive to reading articles about this business.

I use two registra and after reading, I told myself the damn truth and helped myself spot out the bad names that if the don't sell this year am dropping them,
So I switch off the auto renewal on the names I wouldn't want to renew if the don't sell.

Domaining can be addictive, But if treated as a business it will be productive.
 
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