Dynadot

Can I make a full time living from selling domains?

NameSilo

Sjpals

Established Member
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So this is how I spend my Friday night, lol

Someone asked ages ago if domaining is possible full time, eg selling enough domains each year to make a full time living (strictly sales, not parking or developing etc). We all see the headline domain sales, but what about the seller who sells each domain at $1000 or below? People say that you need a huge portfolio and that the sell through rate is 1%, eg you may sell 1% of your portfolio in the year. Like most people, I would love to spend all my time buying and selling domains, so I thought I would do the maths.,.

I’m in Australia so this is in AUD, but I’m sure you can all work it out in your own currency…

I want to make $2k per month ($24k a year) to live a moderate life that covers my bills, but nothing fancy.

My domain reg fees are $14.20 (in AUD, it’s the cheapest of the 3 registrars I use). They also charge in AUD, so no foreign fees, and charge the same for transfers and renewals to keep life simple (that’s why I like them!)

I am not taking renewals in to consideration or the replacement of sold domains. These calculations are as if I literally bought all the domains in 1 year and sold 1% of them.

If I have a portfolio of 100 domains it will cost me $1,420 to reg them. Add on the $24k I want to make in the year and I need to make $25,420. If I only sell 1% of my portfolio (so 1 domain) I need to sell it at $25,420.

None of my domains are fantastic quality, and they aren't worth $1000 each, let alone $25K each. So lets see if I can sell them for $1000 if I scale up…

1000 domains
Reg - $14,200
Total needed (Add $24k) = $38,200
1% of portfolio = 10
Selling price = $3,820

10K domains
Reg - $142K
Total needed (Add $24k) = 166K
1% of portfolio = 100
Selling price = 1,666

100k domains
Reg - $1.420M
Total needed (Add $24k) = 1.444M
1%of portfolio = 1000
Selling price = $1,444

1M domains
Reg – 14.2M
Total needed (add $24k) = 14.224M
1% of portfolio = 10K
Selling price = $1,422

As you can see, the figures don’t work because the selling price is still over $1K (and there is really no difference in the selling price between 100k domains and 1M domains). So, If I cant sell my domains for $1k or under and make $24k to live off, why not improve the quality of the domains… Well, to get better quality domains you probably need to spend money at auction to buy them, which you also have to add into the calculations.

So, lets say that each ‘quality’ domain that is pretty certain to sell for a higher price than $1000 costs $200 at auction. In real life we have a mixture of domains, but lets say for simplicity we bought all of them at auction. There isn’t a reg price, but it would cost the same amount to transfer the domain to my registrar.

100 domains
Purchase price - $20,000
Transfer - $1,420
Total needed (add $24k) =$45,420
1% of portfolio = 1
Selling price = $45,420

1000 domains
Purchase price - $200,000
Transfer - $14,200
Total needed (Add $24k) = $238,200
1% of portfolio = 10
Selling price = $23,820

10K domains
Purchase price - 2M
Transfer - $142K
Total needed (Add $24k) = $2.166M
1% of portfolio = 100
Selling price = $21,660

I’m not sure that a $200 purchase at auction (or at least one that I would pick to purchase) could be worth over $20K to resell (though we can hope, right??!!!). Lets try once more. Maybe if I purchased domains at auction for $1000, would the figures work? Would I be able to sell domains at $20K?

100 domains
Purchase price - $100,000
Renewal - $1,420
Total needed (add $24k) =$125,420
1% of portfolio = 1
Selling price = $125,420

1000 domains
Purchase price - $1,000,000
Renewal - $14,200
Total needed (Add $24k) = $1,038,200
1% of portfolio = 10
Selling price = $103,820

10K domains
Purchase price - 10M
Renewal - $142K
Total needed (Add $24k) = $176,000
1% of portfolio = 100
Selling price = $103,108

Nope. How ever I work this out, it doesn’t work out. I will never make my $24k a year from selling $1k or less domains. I would have to be exceptionally talented and slightly lucky (and have investment capital) to constantly spend $200 at auction and sell at $20k (and $1k purchases for a 100K sell would probably be very hard to make happen on a consistent basis).

So, what now? Well I have over 100 domains, so how much do I need to sell them at to at least break even and cover the reg fees as a hobby?

100 domains
Reg - $1,4200
1% of portfolio = 1
Selling price = $1,420

1000 domains
Reg - $14,200
1% of portfolio = 10
Selling price = $1,420

10K domains
Reg - $142K
1% of portfolio = 100
Selling price = $1,420

So, as a hobby that breaks even, this works. I currently price my domains for around $1400 AUD / $1000 USD. Whether they sell at that price is a totally different matter as I honestly don't think they are worth that. I have tried some different pricing, some for more, and some for less, but will now keep them all at over $1400!!. I started selling them in April and haven’t sold one yet, but they weren’t all originally bought with resale value in mind. I’ll give it a full 12 months to see if the 1% sell through rate happens for me.

I am happy to hear your thoughts and I would be interested to see any of your calculations if you do any.
 
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jhm

Top Contributor
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Considering the effort you've put into this post, you must really like the idea of domain investing. You've got one good element: Enthusiasm. Most investors in the forum aren't totally full time, they have other interests. What I would say is don't think you can follow any sort of plan / expectation about what you're going to sell, and when you're going to sell it. You're going to end up waiting, getting low balled, overall wondering why stuff isn't happening the way you envisioned, even if you own quality domains. Take this business and treat it as a side income, learn, have fun, prove what you can really do (for real) over time, and then make the evaluation. IMO
 
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VadimK

Top Contributor
Impact
3,174
The first problem is actually to get to this 1% sell thru rate. That's where many are stuck. I'd say you need 1-2 years generally for this, or at least 6 months if you are lucky/learn fast/dedicate lots of time.

The second problem is to scale up your portfolio to the point of seeing constant sales, and it's very hard, next to impossible with only hand regs nowadays. You need to catch dropped domains (at least!) but also do some hand regs, or spotting new trends constantly. So, you need some money, lots of time, full dedication and enormous patience to become a full time domainer one day. Needless to say, the absolute majority of us don't have this ''full package''. And that would be my answer to your question - you definitely can be a full-time domainer, but it's very, very hard.

Also, on top of all that there is a fact that no one brings in - is the place where you actually live, which might dramatically affect your way to full time domaining. Living in a village 100km from Mumbai or in downtown Manhattan means you need 2 very different incomes to cover your needs. Imagining two people with similar brains and level of English, I dare to suspect that the road to success (which in this case means making money from domaining only!) for the first person will be much shorter.
 

Way3

Branding and Domain InvestingUpgraded Member
Impact
324
Take this business and treat it as a side income, learn, have fun, prove what you can really do (for real) over time, and then make the evaluation.
Best advice, full stop.
 

bmugford

www.DataCube.comTop Contributor
Impact
42,702
So this is how I spend my Friday night, lol

Someone asked ages ago if domaining is possible full time, eg selling enough domains each year to make a full time living (strictly sales, not parking or developing etc). We all see the headline domain sales, but what about the seller who sells each domain at $1000 or below? People say that you need a huge portfolio and that the sell through rate is 1%, eg you may sell 1% of your portfolio in the year. Like most people, I would love to spend all my time buying and selling domains, so I thought I would do the maths.,.

I’m in Australia so this is in AUD, but I’m sure you can all work it out in your own currency…

I want to make $2k per month ($24k a year) to live a moderate life that covers my bills, but nothing fancy.

My domain reg fees are $14.20 (in AUD, it’s the cheapest of the 3 registrars I use). They also charge in AUD, so no foreign fees, and charge the same for transfers and renewals to keep life simple (that’s why I like them!)

I am not taking renewals in to consideration or the replacement of sold domains. These calculations are as if I literally bought all the domains in 1 year and sold 1% of them.

If I have a portfolio of 100 domains it will cost me $1,420 to reg them. Add on the $24k I want to make in the year and I need to make $25,420. If I only sell 1% of my portfolio (so 1 domain) I need to sell it at $25,420.

None of my domains are fantastic quality, and they aren't worth $1000 each, let alone $25K each. So lets see if I can sell them for $1000 if I scale up…

1000 domains
Reg - $14,200
Total needed (Add $24k) = $38,200
1% of portfolio = 10
Selling price = $3,820

10K domains
Reg - $142K
Total needed (Add $24k) = 166K
1% of portfolio = 100
Selling price = 1,666

100k domains
Reg - $1.420M
Total needed (Add $24k) = 1.444M
1%of portfolio = 1000
Selling price = $1,444

1M domains
Reg – 14.2M
Total needed (add $24k) = 14.224M
1% of portfolio = 10K
Selling price = $1,422

As you can see, the figures don’t work because the selling price is still over $1K (and there is really no difference in the selling price between 100k domains and 1M domains). So, If I cant sell my domains for $1k or under and make $24k to live off, why not improve the quality of the domains… Well, to get better quality domains you probably need to spend money at auction to buy them, which you also have to add into the calculations.

So, lets say that each ‘quality’ domain that is pretty certain to sell for a higher price than $1000 costs $200 at auction. In real life we have a mixture of domains, but lets say for simplicity we bought all of them at auction. There isn’t a reg price, but it would cost the same amount to transfer the domain to my registrar.

100 domains
Purchase price - $20,000
Transfer - $1,420
Total needed (add $24k) =$45,420
1% of portfolio = 1
Selling price = $45,420

1000 domains
Purchase price - $200,000
Transfer - $14,200
Total needed (Add $24k) = $238,200
1% of portfolio = 10
Selling price = $23,820

10K domains
Purchase price - 2M
Transfer - $142K
Total needed (Add $24k) = $2.166M
1% of portfolio = 100
Selling price = $21,660

I’m not sure that a $200 purchase at auction (or at least one that I would pick to purchase) could be worth over $20K to resell (though we can hope, right??!!!). Lets try once more. Maybe if I purchased domains at auction for $1000, would the figures work? Would I be able to sell domains at $20K?

100 domains
Purchase price - $100,000
Renewal - $1,420
Total needed (add $24k) =$125,420
1% of portfolio = 1
Selling price = $125,420

1000 domains
Purchase price - $1,000,000
Renewal - $14,200
Total needed (Add $24k) = $1,038,200
1% of portfolio = 10
Selling price = $103,820

10K domains
Purchase price - 10M
Renewal - $142K
Total needed (Add $24k) = $176,000
1% of portfolio = 100
Selling price = $103,108

Nope. How ever I work this out, it doesn’t work out. I will never make my $24k a year from selling $1k or less domains. I would have to be exceptionally talented and slightly lucky (and have investment capital) to constantly spend $200 at auction and sell at $20k (and $1k purchases for a 100K sell would probably be very hard to make happen on a consistent basis).

So, what now? Well I have over 100 domains, so how much do I need to sell them at to at least break even and cover the reg fees as a hobby?

100 domains
Reg - $1,4200
1% of portfolio = 1
Selling price = $1,420

1000 domains
Reg - $14,200
1% of portfolio = 10
Selling price = $1,420

10K domains
Reg - $142K
1% of portfolio = 100
Selling price = $1,420

So, as a hobby that breaks even, this works. I currently price my domains for around $1400 AUD / $1000 USD. Whether they sell at that price is a totally different matter as I honestly don't think they are worth that. I have tried some different pricing, some for more, and some for less, but will now keep them all at over $1400!!. I started selling them in April and haven’t sold one yet, but they weren’t all originally bought with resale value in mind. I’ll give it a full 12 months to see if the 1% sell through rate happens for me.

I am happy to hear your thoughts and I would be interested to see any of your calculations if you do any.

I scaled from basically nothing to a large portfolio.

Some things to keep in mind...

If you introduce slight differences to the data the results are wildly different.

Maybe your STR is 1.5% or 2%.
Maybe your average sales price is $1,500 or $1,800.
Maybe you make one random high dollar sale.

All those options shift the numbers in a favorable way.

I would expand more, but I am working on a longer post related to scaling.

Brad
 

Omar Negron

Top Contributor
Impact
1,599
I would expand more, but I am working on a longer post related to scaling.
Please let me know whenever that is up! I would love to read what you have to share about this. Thanks Brad!

-Omar
 

redemo

Mug RuithTop Contributor
Impact
2,447

twiki

Top Contributor
Impact
23,222
I scaled from basically nothing to a large portfolio.

Some things to keep in mind...

If you introduce slight differences to the data the results are wildly different.

Maybe your STR is 1.5% or 2%.
Maybe your average sales price is $1,500 or $1,800.
Maybe you make one random high dollar sale.

All those options shift the numbers in a favorable way.

I would expand more, but I am working on a longer post related to scaling.

Brad
Hear, hear.

============
Now my perspective on this.

So I made my first money with XXX range domains. Which means, it's possible. However it might be different in 2022, I don't know as I'm not trying anymore.

What I can say is the following.

- I am passing on a good bulk of XXX to $1k price range domains expiring on a daily basis. Many are up for grabs for hours. (only $2k+ names are snatched fast, typically).

- Many are sellable (and some rather fast). They are however in niches I don't operate in (either due to not knowing the niche well; or don't like (e.g sports? bio stuff? I'm mostly clueless at that) and have to focus on something anyway).

- With the right pricing, the sales ratio can raise up to 5% or more. My sales ratio on those xxx' domains ranged from 6% to 8% back in the days. Notably, this only happens with xxx range domains; the more you go up, the more ratio will decline.

- If one can do outbound, OR if they perfect a method to sell further clearance to other domainers (NP, Sedo, NameLiquidate, GD auctions etc etc) then they can recover a LOT of the registration cost.

I did this for a while on NP, managed to sell up to 50% of my expiring names for $5...$15 a piece on average.

Can still do it but I'm not doing it anymore because:

1) it's time consuming and I have 3 active businesses to work on, and

2) My domains today are better and for some weird reason they are less bought at clearance, both on NP and other liquidation places; it seems many are not getting what I'm selling for $2k or whatnot.

I often get questions like "What the hell is B o x a t i o n .com and how did it sell for $2K? I don't get it".

Well, it's a pity but I let lots of such names expire because people are NOT seeing value in them for some very weird reason. Let 4000 names expire recently cause nobody was buying any (for $10) and I'm in a heavy reduction of portfolio size for less management time while moving $ into a new biz.

Guess common domains like DakotaPlumbers or FixMyCeiling or whatever crypto hype is your thing, still sell much better at low pricing (this is an embedded tip here). Anyway.

This being said, it can work. But you have to find the crack in the thing to really open it.

Oh, and you need an upfront budget. at least few k or 10k or something. Making a budget out of selling a name or two you have money for? That won't cut it. Especially nowadays.

Edit: @Sjpals , congrats for doing the math. Very few newbies do it until it's far too late (or never). To me that's a good sign you're onto something. Or might be soon. As @bmugford said above, you can make it work but you need to either increase the sales price OR the sales ratio somehow. Look out for that thing that brings it. It differs from domainer to domainer.
 
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okaydomains

Upgraded Member
Impact
1,637
I love your math. It's great to break it down like this because it's a grind and it's hard. And I like your conclusion - with a small portfolio you should price high and expect to sell one or two names a year.

But if you want to scale it changes in a few ways. I have been at this for 15 years (but much more heavily invested recently). I'm still not where I want to be but I've learned a lot.

The first thing is you've got to stop thinking about this on a one year term. It makes the math easier but this is just not a business that works on the short term. Expect to buy a lot of names and sit on them for years while the market for them develops.

You are basically trying to profit because you know more about domains and their value than other people. So you will have to wait for them to catch up with you before they'll pay the asking price.

Second, if you spend $300+ on a name you should be thinking about amortizing that cost over at least five years.

That means renewal fees are negligible. That's what gives the seller so much leverage in a domain sale - we can sit on this name forever and pay 10 bucks a year. The buyer needs it now.

So if I don't sell a domain that I paid $300 for in the first year I'm not going to let it go or consider it any kind of failure. I see good names as an appreciating asset that I'm happy to hold until they sell.

Finally, you don't really think about sales in terms of profit any more, but more in terms of cash flow. A domain business that cash flows $24k/yr is actually grossing quite a bit more, assuming it is buying new names all year and improving/growing it's portfolio.

All of this of course takes money. You'll have to find cash flow somewhere, either another source of income or getting lucky with some short-term sales. Either way I wish you all the best of luck. I think there's plenty of room for all of us to do well.
 

Mimo83

Domains PassionateEstablished Member
Impact
247
It doesn't work with Calculations at ALL! the first thing you have to do is to learn how to pick names that could sell, and price them to sell, then list them everywhere That's it..
Then your STR would be much more than %1
 
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Recons.Com

Top Contributor
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17,694
1. the renewal price seem to be high which makes it tougher compared to 9.65$ that .com will cost post September (+50% or so)

2. With .com and decent collection of brandables with under $2k pricing, the STR can be considerably higher than 1%, maybe closer to 1.5%. Of course, you'd have to plan for around 20% commissions from the sale price. I normally plan for 2.5k average sale, 2k net, 1% STR +/- 0.2% depending on the market conditions for the names I did not have to bid against others when buying.

For Australia, the market maybe too small and choices too many for the aftermarket for non-premium names to be viable. You need to focus buying top quality names, even if you have to pay $xxx at auctions and pricing them in mid $xxxx to low $xx,xxx range. If you collect around 1000-2000 of names like that and average 10-20 sales at around 6k each post commission, then you'll be generating 60k to 120k a year, minus 15k-30k renewals, net 45k to 90k on an investment of $200k to 400k with average cost of around $200 per name.
 

Recons.Com

Top Contributor
Impact
17,694
I just checked that 1 usd is 1.45 ausd. So, generally, pricewise it is similar to .com, but, again, the market is too small for generic brandables to form an aftermarket.

So the advice remains the same: focus on the auction premiums (not sure how it works for Australian domains that drop and who wins/auctions the good ones).
 

Sjpals

Established Member
Impact
356
Thank you all for your comments and insights so far.
I am trying to keep the maths very simple, as my maths really isn't that good. I'm just looking at it now to see if I will just breakeven with my reg fees within the course of a year and not even make a profit. Doesn't even take into account market place fees etc.
I am trying to look at this from the view point of a breakeven analysis for a start up business. No point in a side hustle that doesn't breakeven, let alone make profit.

@Bob Hawkes posted an analysis ( https://www.namepros.com/blog/what-are-the-odds-applied-probability-for-domain-investing.1280124/ ) and worked out an STR of 0.44% as an industry average in the last 5 years and an average selling price of $3061.

My 1% STR was therefore generous and I have already reduced my price down from that $3016 to $1000 USD (so $1400 AUD). But as there have been suggestions to increase the STR by reducing the price, lets see what the minimum price I can sell at to breakeven would be.

100 domains
Reg - $1,420
0.44% of portfolio (STR) = 0.44
Selling price = $3,232 (which would be $2238 in USD, so less than the average).

100 domains
Reg - $1,420
1% of portfolio = 1
Selling price = $1,420 (about $1k usd)

100 domains
Reg - $1,420
2% of portfolio (STR) = 2
Selling price = $710

100 domains
Reg - $1,420
3% of portfolio (STR) = 3
Selling price = $473.33

100 domains
Reg - $1,420
4% of portfolio (STR) = 4
Selling price = $355

100 domains
Reg - $1,420
5% of portfolio (STR) = 5
Selling price = $284 ($197 USD)

100 domains
Reg - $1,420
6% of portfolio (STR) = 6
Selling price = $237 (about 164 USD)

If I reduced my domains down to $237, could I manage to sell one every 2 months? Maybe??

I'll have to do more calculations that include market fees / escrow fees (on my own website) and then experiment for a while with it.
 

bmugford

www.DataCube.comTop Contributor
Impact
42,702
@Bob Hawkes posted an analysis ( https://www.namepros.com/blog/what-are-the-odds-applied-probability-for-domain-investing.1280124/ ) and worked out an STR of 0.44% as an industry average in the last 5 years and an average selling price of $3061.

My 1% STR was therefore generous and I have already reduced my price down from that $3016 to $1000 USD (so $1400 AUD). But as there have been suggestions to increase the STR by reducing the price, lets see what the minimum price I can sell at to breakeven would be.
No one really knows how many unreported sales there are.

I will say if you took my sales as a guideline, it is almost all. Many venues like Afternic just don't report sales. The vast majority of sales are private and not reported to NameBio.com. The sales there are really only the tip of the iceberg IMO.

Brad
 

bmugford

www.DataCube.comTop Contributor
Impact
42,702
100 domains
Reg - $1,420
0.44% of portfolio (STR) = 0.44
Selling price = $3,232 (which would be $2238 in USD, so less than the average).

100 domains
Reg - $1,420
1% of portfolio = 1
Selling price = $1,420 (about $1k usd)

100 domains
Reg - $1,420
2% of portfolio (STR) = 2
Selling price = $710

100 domains
Reg - $1,420
3% of portfolio (STR) = 3
Selling price = $473.33

100 domains
Reg - $1,420
4% of portfolio (STR) = 4
Selling price = $355

100 domains
Reg - $1,420
5% of portfolio (STR) = 5
Selling price = $284 ($197 USD)

100 domains
Reg - $1,420
6% of portfolio (STR) = 6
Selling price = $237 (about 164 USD)

If I reduced my domains down to $237, could I manage to sell one every 2 months? Maybe??

I'll have to do more calculations that include market fees / escrow fees (on my own website) and then experiment for a while with it.

If I was starting with say $10K and months of time, I would more than likely pickup domains in a $50 - $500 price range. Pretty much just .COM. There is value in other extensions, but it is really swimming upstream without an income source to fall back on.

Not only are you going to get significantly higher quality domains, you are going to to make renewals less of a factor.

If you are paying a $10 renewal on a $200 domain it doesn't eat into value as much as paying renewals on a domain worth reg fee.

These higher quality domains are more likely to sell, and for higher prices.

If you did that, let's assume an average of 100 .COM domains @ $100 each.
$10K spent.

Depending on the quality of domain, I would price most in a standard end user range of around $1500 - $5,000.
I would anticipate a STR or around 1.5% with an average sale of around $2,000.

Year (1) -
$10K spent for (100) domains
1.5x sales for $3000

You lost $7K in year one, but it is needed to grow long term when it comes to portfolio growth.

Year (2) -
99 domains left.
$1K cost in renewals.
1.485x sales for $2970
$1,970 profit.

Future years would have similar math.

As you grow your portfolio the math becomes better and better.

I have always said I think you really need quality AND quantity to really have a sustainable business model.

For this model to work though it really requires the right selection of domains.

It can take a few years (or more) to really turn a corner.

Brad
 
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lock

WOLFWHISTLETop Contributor
Impact
7,233
All those ratios improve with better names all good and well with 1% but would rather use better names and aim for a better model. Aussie here also.
 
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lock

WOLFWHISTLETop Contributor
Impact
7,233
Main problem is the making a living part you are going to have to include domains rather than make it about domains. Eg buy a great name develop it and jump start a business as it won't be just domain sales it will be traffic or dropship or services that will grow a business.
 

honestbobby

Established Member
Impact
299
Great reading.. Keep trying.. I have noticed.. I am improving.. This year I have better names than last year... Hope this feeling goes on each year...with better names and better sales..
 
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kor

Established Member
Impact
222
The golden rule of domain business; each domain name is unique.

It would not be correct to calculate on a fixed profit rate, such as the sale of consumables, so dynamic pricing comes into play at this point.
You can hit the lottery on an asset you buy for $10 and sell it for $200,000. Or, if you buy an asset for $500 with confidence in an auction, you may need to sell it for $800 after 3 years.
In other words, the monetary value of each domain name is unique. Some may have a very high profitability rate, some less. You may even want to give up renewing some of them and sell them for the purchase price just to recover the loss.

In this context, strategic points are; correct pricing, using aftermarket platforms and domaining tools for its intended purpose, following the market and trends closely.

Some domainers, on the other hand, quickly buy the domain names they have caught sight of without going into such details, act on a unit price policy with a fixed pricing, and focus only on short-term cash flow.

I would also like to ask: Is the amount you put back into your business within this $2000 monthly dividend?
Let's say you actually somehow accomplished the $24000 target in the first year, paid your rent, bills, etc., and survived. What about next year?
 

redemo

Mug RuithTop Contributor
Impact
2,447
I want to make $2k per month ($24k a year) to live a moderate life that covers my bills, but nothing fancy.
Hey man, really interesting thread, thanks for starting it. What you're attempting to earn with selling your domain names is exactly what I'm trying to do developing my domain names, only difference is Queen's Pounds instead of Kangaroo's Dollars. For £2000 every month you can live a really comfortable life here in the U.K. It's not a rich person's income but you could be comfortable as long as you're sensible. You don't pay much tax and national insurance here on £24000 it would be like £4000 I got it from here https://www.gov.uk/estimate-income-tax to calculate it, for Australia I think it's even less like $1000 got it from here https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=STC&anchor=STC#STC/questions. Good luck.
 

Recons.Com

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Hey man, really interesting thread, thanks for starting it. What you're attempting to earn with selling your domain names is exactly what I'm trying to do developing my domain names, only difference is Queen's Pounds instead of Kangaroo's Dollars. For £2000 every month you can live a really comfortable life here in the U.K. It's not a rich person's income but you could be comfortable as long as you're sensible. You don't pay much tax and national insurance here on £24000 it would be like £4000 I got it from here https://www.gov.uk/estimate-income-tax to calculate it, for Australia I think it's even less like $1000 got it from here https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=STC&anchor=STC#STC/questions. Good luck.

How do you make a living in the UK with 24k - 4k tax = 20k net?

I have visited London and Aberdeen often in the past and my impression was that everything was very pricey. Of course, not Norway-pricey, but definitely way more expensive than the US, e.g.

Is that because life in the smaller towns is way cheaper than London/Aberdeen or you just have to know non-tourist places and way of life that is affordable?
 

Sjpals

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The golden rule of domain business; each domain name is unique.

It would not be correct to calculate on a fixed profit rate, such as the sale of consumables, so dynamic pricing comes into play at this point.
You can hit the lottery on an asset you buy for $10 and sell it for $200,000. Or, if you buy an asset for $500 with confidence in an auction, you may need to sell it for $800 after 3 years.
In other words, the monetary value of each domain name is unique. Some may have a very high profitability rate, some less. You may even want to give up renewing some of them and sell them for the purchase price just to recover the loss.

In this context, strategic points are; correct pricing, using aftermarket platforms and domaining tools for its intended purpose, following the market and trends closely.

Some domainers, on the other hand, quickly buy the domain names they have caught sight of without going into such details, act on a unit price policy with a fixed pricing, and focus only on short-term cash flow.

I would also like to ask: Is the amount you put back into your business within this $2000 monthly dividend?
Let's say you actually somehow accomplished the $24000 target in the first year, paid your rent, bills, etc., and survived. What about next year?
I was totally ignoring the next year so that the maths was simplified.
 

redemo

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How do you make a living in the UK with 24k - 4k tax = 20k net?

I have visited London and Aberdeen often in the past and my impression was that everything was very pricey. Of course, not Norway-pricey, but definitely way more expensive than the US, e.g.

Is that because life in the smaller towns is way cheaper than London/Aberdeen or you just have to know non-tourist places and way of life that is affordable?
How do you not make a living in London or Aberdeen with £20000 net salary? I guess it depends how many sprogs you've sprung, but as a single and ready to mingle, or a happy couple (that would be £40000) it's super easy. £1600 for a person each month is easy to live in the U.K.
 

Sjpals

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Hey man, really interesting thread, thanks for starting it. What you're attempting to earn with selling your domain names is exactly what I'm trying to do developing my domain names, only difference is Queen's Pounds instead of Kangaroo's Dollars. For £2000 every month you can live a really comfortable life here in the U.K. It's not a rich person's income but you could be comfortable as long as you're sensible. You don't pay much tax and national insurance here on £24000 it would be like £4000 I got it from here https://www.gov.uk/estimate-income-tax to calculate it, for Australia I think it's even less like $1000 got it from here https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=STC&anchor=STC#STC/questions. Good luck.
I was originally going to do it selling websites, but then changed my mind, and thought I would try and sell the domains on their own.