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Do you include wholesale domains in your STR calculation?

Labeled as question in Domain Buying and Selling Discussion, started by Ostrados, Dec 26, 2020

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  1. Ostrados

    Ostrados EpicName.com VIP

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    If you want to calculate your sell through rate (STR) for 2020, and lets say you have:
    • 100 total domains
    • 50 wholesale sales (liquidation)
    • 1 retail sale
    STR should be calculated on your retail sales, so how do you calculate it?
    a) 1 / (100 - 50) = 2%
    b) 1 / 100 = 1%

    In (a) I removed domains sold at wholesale from "total domains" and only calculated STR based on the remaining domains (100 - 50)

    what do you think?
     
    Last edited: Dec 26, 2020
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  2. Ostrados

    Ostrados EpicName.com VIP

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    Just thought about it and I think it is more complicated than what I initially thought, if you sold a domain at wholesale price and that domain was listed for 11 months then it should be calculated in the total domain when you calculate the annual retail STR.

    Anyone?
     
    Last edited: Dec 28, 2020
  3. johnn

    johnn WeSellName.com PRO VIP ★★★★★★★★★★

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    The count on the net profit make more sense than the count on the number of domains.

    You may sell 100 crap names and make $2 each from the $1 auction is different from you sell one domain for $100,000 and make $90,000
     
  4. Ostrados

    Ostrados EpicName.com VIP

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    Sure I do calculate net profit which is easy, but I am also interested in calculating STR which is harder to do.
     
  5. kaposzta

    kaposzta Top Contributor VIP ★★★★★★★★★★

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    I'm calculating STR only for end-user sales.
     
  6. ivbran

    ivbran Established Member

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    I calculate:
    Wholesale STR
    Enduser STR and
    Total STR
     
  7. Ostrados

    Ostrados EpicName.com VIP

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    Yes I do the same but do you include domains that you liquidated at wholesale in total domains when you calculate STR for end user sales?

    I think my question is a bit confusing?
     
    Last edited: Dec 29, 2020
  8. kaposzta

    kaposzta Top Contributor VIP ★★★★★★★★★★

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    I exclude domains that I liquidated, because I would like to know only my enduser STR. I mean, I could reach any STR when selling my domains to domainers (e.g. 100% if I were selling my domains for $1 each LOL), so the wholesale STR does not make much sense to me. Including these in my "total" STR would be misleading.
     
  9. Ostrados

    Ostrados EpicName.com VIP

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    I don't think you got my point, here is an example:
    Lets say you owned 1000 domains in 2020
    Sold 200 wholesale
    Sold 20 retail

    STR (retail) = 20 / 1000 or 20 / 800 ?

    Where 800 is removing wholesale domains from coung of total domains (1000-200=800)
     
    Last edited: Dec 29, 2020
  10. kaposzta

    kaposzta Top Contributor VIP ★★★★★★★★★★

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    Sorry, now I understand your point :)
    Good question, I would say that I'd choose the first one. The reason is that I had 1000 domains in total, with the intention of selling all to endusers - then for 200 domains I chose not to give the chance of being sold to endusers. My real number of sales was 20, and the total domain count intended to be sold to endusers was 1000. It's my "failure" that I sold 200 domains to non-end-users, and this failure must be represented in my STR.
     
    Last edited: Dec 29, 2020
  11. Ostrados

    Ostrados EpicName.com VIP

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    That makes sense.. thanks!
     
  12. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    seems like, if it takes that much thought, then one should abandon the notion.

    str don't mean :poop: if you're not making an overall profit.

    one should be focused on roi, instead of whether you sell to enduser or not

    imo....
     
  13. Ostrados

    Ostrados EpicName.com VIP

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    STR is important for future financial projection
    ROI is for evaluating past performance

    I need to calculate an accurate STR to plan how to scale my business model accordingly

    And yes it needs deeper thinking that what you think.. I am actually thinking about deriving a formula for it
     
  14. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    i think you got that backwards

    and like some others, seem to make a lot of :poop: more complicated than it really is.

    imo....
     
    Last edited: Jan 16, 2021
  15. Ostrados

    Ostrados EpicName.com VIP

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    I didnt get anything backward, but it seems you have no clue what I am talking about.

    If you have no helpful thing to add then no need to post :poop: comments.

    Thanks
     
    Last edited: Jan 16, 2021
  16. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    here is the logic, you find the flaws and let me know:

    since, the str can only be calculated after an interval of time has passed
    then
    it is an evaluation of past sales performance of a portfolio, for that period.

    since roi is the return on your investment
    and if you are not getting any returns on your investments and/or your margin of profits are low
    then
    your future financial situation will be in jeopardy and it is doubtful you will be able to sustain your model.

    if your margins of profit are not high enough to sustain the portfolio, then it does not matter how many names you sell in a year or what your str is.

    imo....
     
  17. Ostrados

    Ostrados EpicName.com VIP

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    This is off topic.. the topic is how to calculate STR? Not discuss if you need to calculate STR

    STR is calculated from past records, and I can use it to predict future revenue

    What is so hard to understand about that?!!

    I am sure that you understand my point but you are just too negative and trying to make my topic question sound naive while it is not!!

    If you have something valuable to add then you are welcome.. so far you only contributed by posting :poop: emoji twice.
     
    Last edited: Jan 16, 2021

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