question Domain purchase price to estimated value ratio

[Reddstagg]

A newbie here, so be gentle with me. I'd like to know if I am on the right track or whether I should take up knitting. I have spent approximately $1,700 purchasing 96 domains and using the Godaddy value estimating tool the portfolio would appear to have a value of $52,000. This means that each domain has an average purchase cost of $17 and an average value of $541.

I admit, I made a few rookie mistakes along the way and have yet to make any sales but I'd appreciate any guidance you can give or constructive criticism as appropriate.

Thank you.

 

[Rajuajoshi]

@Reddscorch , please do not rely on Go Daddy value tool to estimate value, If you are sitting on the 96 domains with the investment of $1700 ,and yet to see any sale. It's time to take a pause and focus on sale.
IMO.
Good luck

 

[Reddstagg]

@Reddscorch , please do not rely on Go Daddy value tool to estimate value, If you are sitting on the 96 domains with the investment of $1700 ,and yet to see any sale. It's time to take a pause and focus on sale.
IMO.
Good luck

Thank you for your reply. I have not made any sales yet as I haven't listed any for sale. This will be the next step, although there is no rush to do this yet. I am still learning so much from everyone on this forum.

 

[Steve Andersen]

Don't feel bad I started last month and have about 190 names. I have spent more and also made several rookie mistakes along the way. I bought some in auctions, got some on the drop, and others I have hand registered. I have not put very many up for sell as most I have not had past the 60 day registrar lock. So if I understand it correctly I can't transfer them anyway.

I have played around with Parking them at both Godaddy and Bodis. I don't see this as being very profitable and will probably eventually go to custom landing sale pages.

 

[Reddstagg]

Don't feel bad I started last month and have about 190 names. I have spent more and also made several rookie mistakes along the way. I bought some in auctions, got some on the drop, and others I have hand registered. I have not put very many up for sell as most I have not had past the 60 day registrar lock. So if I understand it correctly I can't transfer them anyway.

I have played around with Parking them at both Godaddy and Bodis. I don't see this as being very profitable and will probably eventually go to custom landing sale pages.

I am only actively domaining for about 6 months although I have had my own domains and websites for about 5 years. There is just so much to learn and there appears to a lot of confusing information for a beginner. In life as with most things I think that I tend to keep things simple. I tend to gravitate towards the market leaders as my view is that they got to number one in their field for a reason.

Therefore, I think that when I list my domains it will be with GD in an auction with a BIN figure. I am still learning so when I am leaner and richer I can review my strategy.

The one thing that amazes me after countless hours researching is that I don't feel that I have done too badly when I see some of the domain names that people with much more experience have for sale. I.e. any two random words put together that make absolutely no sense in the real world or the domaining world.

I guess that anyone can buy a domain but the real difference between poor and not so poor is the art of marketing and selling a domain. Perhaps I will just use the K.I.S.S. approach.

I mean, how hard can it really be...right!!! LOL

 

[Rajuajoshi]

I am only actively domaining for about 6 months although I have had my own domains and websites for about 5 years. There is just so much to learn and there appears to a lot of confusing information for a beginner. In life as with most things I think that I tend to keep things simple. I tend to gravitate towards the market leaders as my view is that they got to number one in their field for a reason.

Therefore, I think that when I list my domains it will be with GD in an auction with a BIN figure. I am still learning so when I am leaner and richer I can review my strategy.

The one thing that amazes me after countless hours researching is that I don't feel that I have done too badly when I see some of the domain names that people with much more experience have for sale. I.e. any two random words put together that make absolutely no sense in the real world or the domaining world.

I guess that anyone can buy a domain but the real difference between poor and not so poor is the art of marketing and selling a domain. Perhaps I will just use the K.I.S.S. approach.

I mean, how hard can it really be...right!!! LOL

I agree with your view however if you notice, random two words domains are getting sold in a big chunk. That also surprises me that, why someone has registered such name and who the hell on this earth bought it.

 

[Reddstagg]

I agree with your view however if you notice, random two words domains are getting sold in a big chunk. That also surprises me that, why someone has registered such name and who the hell on this earth bought it.

I see what you mean and I understand the difference. However, I mean for example...quiche and ferrari would never be used in a sentence in the real world and u wud certainly never have a shop on the highstreet called QuicheFerrari. Now, I can understan using the words red and kettle together for a tea shop or a restaurant...The Red Kettle Cafe would work.

I have a few domains that I have hand regged and thought to myself...why has no one ever regged that domain? The answer might be that it is a poor choice or I might just have got lucky. Only time will tell.

 

[Reddstagg]

I've just completed a spreadsheet for an additional 400 names that I haven't regged yet and it was interesting to note that after my initial 96 domains the cost has gone down from $17.70 to $7.81 and the potential value has also gone down from a value of $541 each to $319.61 so I think it is safe to say that the amount paid per domain increases the potential value.

Not always. There are 41 domains that are priced at 99c at GD and all of them have a potential value of over $1,000. Therefore, I think I have learned a valuable lesson. Patience is a virtue.

 

[Steve Andersen]

I've just completed a spreadsheet for an additional 400 names that I haven't regged yet and it was interesting to note that after my initial 96 domains the cost has gone down from $17.70 to $7.81 and the potential value has also gone down from a value of $541 each to $319.61 so I think it is safe to say that the amount paid per domain increases the potential value.

Not always. There are 41 domains that are priced at 99c at GD and all of them have a potential value of over $1,000. Therefore, I think I have learned a valuable lesson. Patience is a virtue.

If your hand registering a bunch of .xyz, .best etc.. While you might make money on a few. I think if you don't have a lot of capital to invest over the long term your better off to stick with .com's until you can afford to have a lot of money tied up in these other TLD's.

While I am new and will say I hand registered a few of these myself. The more I thought about it.... While $.99 may seem like a cheap registration. The renewal costs are not as cheap, at which time I will probably let some of these expire.

Just because Godaddy says its worth a $1,000 it may take you a good long while to ever get that amount in lower level TLD's it could take decades.. (Also unless your name really sucks.. GoDaddy appraises almost every thing above $1,000)

Best of luck.

 

[Reddstagg]

Just as an aside, but 3 out of my top 5 for potential value are non .coms.

 

[Jason Baudendistel]

With all due respect but why have 100 domains without even looking to sell? I have like 10. That is a lot tied up in assets that your only indication of value is automated. Not good imo.

 

[Steve Andersen]

With all due respect but why have 100 domains without even looking to sell? I have like 10. That is a lot tied up in assets that your only indication of value is automated. Not good imo.

The amount of money tied up in assets is relative to what one has to work with, plus while I am no expert by any stretch many people are just trying to double registration fees. I am not one of those. Others are marketing to other Domain investors. But the big money makers hold out for months/years on domains holding many of them until the right buyer shows up for the domain.

Basically Many people have 100-1000's of domains.

 

[Jason Baudendistel]

Ah I can see the reasoning behind that. Appreciate the clarification.

 

[Reddstagg]

Let me further clarify. My whole purpose is to sell and make money. I just haven't sold them yet. At the moment, it is all about consolidation and learning. I had about 20 more domains that one could argue were cybersquatting so I just binned those off. First lesson learned.

Then I set about learning as much as I could about this business. Knowledge is wisdom. However, instinct cannot be taught and this may be where I can pick up a few scraps from the table.

This doesn't necessarily have to be played out on a worldwide scale and local knowledge is key. For example I recently regged 'love(insert name of town).com for a few bucks and it is relative to an industry that is worth millions. This one potential sale will pay the renewal fees for the other 99.

Don't get me wrong, money is very important to me. I have none. I am long term unemployed but I am always looking for ways to make money.

Lesson two learned. Don't spend money you cannot afford to lose.

Only time will tell for all of us in the end I guess so good luck with your adventures.

 

[lock]

Less than 1% of domains valued will ever sell that is your ratio. What a tool indicates is what should be considered if you have good searches top tld etc the information is what your seeking. The price is what you can get for it.