discuss Domain flipping vs Domain investing for beginners

[omardomaining]

I sometimes hear the advice that domaining beginners should start off their domaining journey as domain flippers in order to gain experience and generate cash flow.

Some beginners may not be comfortable with outbounding.

Is there any way a beginner may be a flipper without outbounding? Say acquiring domains (hand register/closeout) and listing inbound for wholesale prices?
If yes, what is a feasible strategy?

Or can a beginner start his journey as an investor gradually acquiring domains (hand register/closeout) with a budget and target of building a 100 domain portfolio?
If yes, what is a feasible strategy?

Just to sum it up;

Can a beginner start his journey not being a flipper?

Can a flipper generate cash flow and gain experience without outbounding?

 

[Callmejohn]

The process of generating cash flow will likely be slow either way, hand regging without experience is risky and likely slow (not likely to generate cash flow in first year), but possibly buying a few closeout and cheap .coms that other NP members are selling to shrink their portfolio and trying to resell them at 3-4x your cost here could get you to break even or make a slight profit while gaining experience. Starting lower risk and testing the waters to see what works and what domains actually sell.

In my experience outbound (outside domain investor community) as a beginner with a small portfolio isn’t super helpful the first year. Inbound via Afternic at reseller prices could yield a few sales, maybe up to 5-10% if you do well. Flipping here on NP can definitely get you a few xx to xxx sales but don’t expect a high profit margin. Plus you have to consider renewal costs (or which domains to just drop). Don’t expect inbound sales to occur in less than 8-12 months on average (often more).

Be ready for the long haul though, otherwise you will likely take a loss or maybe just about break even (minus all the time spent domaining). Most inexperienced domainers do not make a profit, and it’s not easy like they make it look in the “how do you sell domains” google search results. Speaking from my first 1.5 years experience as a domainer, just broke even a few months ago.

 

[biggie]

a flipper

Hi

it's best to erase the term from your vocabulary.

the only folks who are flipping names, are the registrars and auction houses.

imo...

 

[omardomaining]

The process of generating cash flow will likely be slow either way, hand regging without experience is risky and likely slow (not likely to generate cash flow in first year), but possibly buying a few closeout and cheap .coms that other NP members are selling to shrink their portfolio and trying to resell them at 3-4x your cost here could get you to break even or make a slight profit while gaining experience. Starting lower risk and testing the waters to see what works and what domains actually sell.

In my experience outbound (outside domain investor community) as a beginner with a small portfolio isn’t super helpful the first year. Inbound via Afternic at reseller prices could yield a few sales, maybe up to 5-10% if you do well. Flipping here on NP can definitely get you a few xx to xxx sales but don’t expect a high profit margin. Plus you have to consider renewal costs (or which domains to just drop). Don’t expect inbound sales to occur in less than 8-12 months on average (often more).

Be ready for the long haul though, otherwise you will likely take a loss or maybe just about break even (minus all the time spent domaining). Most inexperienced domainers do not make a profit, and it’s not easy like they make it look in the “how do you sell domains” google search results. Speaking from my first 1.5 years experience as a domainer, just broke even a few months ago.

Thank you for your reply.

So a beginner can start generating cash flow and gain experience by acquiring domains - preferable closeouts or cheap .coms on NP - and selling them accepting a lower profit margin.

Selling on the shorter term at reseller prices (lower margin) is possible on Afternic and here on NP. (any other venues ? can we do the same on DAN?)

Closeouts usually have better quality domains than hand regs, so will sell faster and therefore create cash flow needed for renewals and acquiring more domains to eventually grow your portfolio.
The only advantage hand regs have over closeouts is the acquisition cost, for example:
Hand reg .com will cost approx. USD 11
GD closeout .com will cost minimum USD 27 (5+22 renewal) and could reach USD 72 (50+22 renewal)
So it is easier to build a 100 domain portfolio with hand regs, but easier to sell a lower number of closeout acquisitions ?
With the same budget, should a beginner trade off quantity for the better quality of the closeouts that have a better chance of selling? Build a smaller portfolio from closeouts ? or, build a hybrid portfolio from both?

This is my general understanding of your reply regarding shorter term cash flow generation for beginners taking into consideration renewal costs.

 

[omardomaining]

Hi

it's best to erase the term from your vocabulary.

the only folks who are flipping names, are the registrars and auction houses.

imo...

Thanks for your notice.

Well this is the term I hear them use even in courses for shorter term buying and selling at lower margins especially with outbounding. So that is what I meant when using it.

 

[MKA]

Domain flipping doesn't work, anyone who tells you differently doesn't know what they're talking about.

Roughly speaking, domains have a 50% sell-rate over a period of 10 years if they're priced right.

Well this is the term I hear them use even in courses for shorter term buying and selling at lower margins especially with outbounding.

Those courses peddling bullshit for AdSense.

You're not going to be able to register a domain someone else wants, because if they wanted it they would've registered it themselves. If I bought omardomains.com would you buy it off me for $100? Of course not.

And if you find some domain that's for sale, that you want to outbound it's better to act as a commissioned broker than to buy it and take on the risk.

 

[omardomaining]

Domain flipping doesn't work, anyone who tells you differently doesn't know what they're talking about.

Roughly speaking, domains have a 50% sell-rate over a period of 10 years if they're priced right.


Those courses peddling bullshit for AdSense.

You're not going to be able to register a domain someone else wants, because if they wanted it they would've registered it themselves. If I bought omardomains.com would you buy it off me for $100? Of course not.

And if you find some domain that's for sale, that you want to outbound it's better to act as a commissioned broker than to buy it and take on the risk.

Noted.

 

[biggie]

this is the term I hear them use even in courses

Hi

yeah,
i guess "they" try to make it seem like it's a quick and easy way to make money.
only things is, "they" are the one's making money off those who pay for those courses.

outbounding is just a sweet term for "sending unsolicited emails" to unsuspecting victims.
it's no longer a unique strategy, because some sellers will say anything, whether true or not, in effort to sell their domains.

so, keep reading,
and you'll see how confused some beginners feel, as they come to the realization that the game is a lot more complicated, than they may have been led to believe.

not saying you can't succeed at some level... depending on what you bring to the table,
but it may take more time and effort than one might have expected.

imo...

 

[omardomaining]

Hi

yeah,
i guess "they" try to make it seem like it's a quick and easy way to make money.
only things is, "they" are the one's making money off those who pay for those courses.

outbounding is just a sweet term for "sending unsolicited emails" to unsuspecting victims.
it's no longer a unique strategy, because some sellers will say anything, whether true or not, in effort to sell their domains.

so, keep reading,
and you'll see how confused some beginners feel, as they come to the realization that the game is a lot more complicated, than they may have been led to believe.

not saying you can't succeed at some level... depending on what you bring to the table,
but it may take more time and effort than one might have expected.

imo...

Thanks again

 

[Callmejohn]

I agree with the other posters. It’s hard and takes time and patience and trial and error. And having 10s to 100s of no sales that you just end up dropping or renewing each year is a reality of the investment both as a beginner and beyond

 

[M Ashraf]

I can't bound funds in any asset and i spent many dollars on liquid domains now when i try to sell total loss. Flipping is a bad idea, if you have extra money just buy domains, parked and forget.