NameSilo

Even a blind chicken can find a great domain!

Located in General Domain Discussion started by MapleDots, Apr 20, 2019.

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  1. Ostrados

    Ostrados Entrepreneur VIP

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    The problem is not if it is possible to sell hand reg domains or not, yes it is possible, the problem is that it is not economically profitable! it is not a good business model to follow.

    Statistically, hand reg domains have much lower chance to sell, and thus if you adopt hand registration as a strategy, they you will need to compensate with high quantity, and high quantity will increase the renewal costs and make it very hard to make any profits.

    Think about it in terms of Quality vs Quantity, lets do a comparison which is more profitable.

    Lets say:
    • selling chance of a hand reg is 0.2% per year
    • selling chance of a high quality domains is 2% per year.
    • You will need 10 hand reg domains : for each 1 high quality domain. And thus you will need 500 hand reg domains VS 50 high quality domain to sell 1 domain per year.
    • Lets assume average sale value is $2,500 per domain
    • Lets assume you sell only 1 domain per year

    Hand Reg Domains:
    • Acquisition cost for 500 domains = 500*$9 = $4,500
    • Renewal cost for 500 domains = 500*$9 = $4,500 per year
    • Sales per year (1 domain) = $2,500

    5 years forecast:
    Total Spending: $4,500 + $4,500 x 5 = $27,000
    Total Revenue = $2,500 x 5 = $12,500
    Income = $12,500 - $27,000 = -$14,500 (loss)

    High Quality Domains:

    Lets assume the average acquisition (closeouts, auctions..etc) is $100 per domain then:
    • Acquisition cost for 50 domains = 50*$100 = $5,000
    • Renewal cost for 50 domains = 50*$9 = $450 per year
    • Sales per year (1 domain) = $2500
    5 years forecast:
    Total Spending = $5,000 + $450 x 5 = $7,250
    Total Revenue = $2,500 x 5 = $12,500
    Income = $12,500 - $7,250 = $5,250 (profit)
     
    Last edited: Apr 20, 2019
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  2. JayT

    JayT LIFESAVINGS.ONLINE

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    1 domain out of 500 isn't 2%
    EDIT: Why even compare 500 to 50? Over-complicating!
     
  3. Ostrados

    Ostrados Entrepreneur VIP

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    I said 0.2% not 2% please check

    500 hand reg domains with 0.2% selling chance => 1 domain per year
    50 High quality domains with 2% selling chance => 1 domain per year
     
    Last edited: Apr 20, 2019
  4. JayT

    JayT LIFESAVINGS.ONLINE

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    You are doing silly math saying it takes 50 domains to sell 2% or 500 is .2. The point isn't how many you have.
     
  5. Ostrados

    Ostrados Entrepreneur VIP

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    It seems you don't understand the silly math

    Edit: The point is that you need 500 hand reg domains to sell 1 domain per year VS only 50 high quality domains to sell 1 domain per year.
     
    Last edited: Apr 20, 2019
  6. JayT

    JayT LIFESAVINGS.ONLINE

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    I don't assume paying $80 for a domain is 10x more likely to sell than a hand reg.
     
    Last edited: Apr 20, 2019
  7. HotKey

    HotKey Made in Canada VIP

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    Blindness and incompetence have nothing to do with one another. Blindness is a challenge, incompetence is a choice. Chickens and domains, on the other hand, I think we may be on to something here:

    chicken.domains
    chickendomains.com

    both avail at chicken feed pricing..

    Unfortunately, chicken.coop which would be the ultimate, has already been cooked up.
     
  8. JayT

    JayT LIFESAVINGS.ONLINE

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    How do I reg about 40 a year and sell a couple via inbound and you're comparing selling 1 out of 500? That's seems an unrealistically terrible rate to me.

    EDIT: like to add, this thread is about HAND-REG, IE: not paying up for all these 'quality' domains you try to promote.
     
    Last edited: Apr 20, 2019
  9. Recons.Com

    Recons.Com Top Member VIP

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    If you are selective with hand regs, you still can have 0.5%-2% depending on your skills, time spent, patience, where listed and how etc. If there is certain randomness to the choice, then the probability could probably drop to 0.1%-0.2% or even lower, which should cause you incur losses, unless you are operating with NS multiple accounts and $1/name promo.
     
  10. JayT

    JayT LIFESAVINGS.ONLINE

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    If I were to buy domains on aftermarket i'd expect to pay more than $100 anyways. I know domains can be bought there, but I think there's a lot more money to be made in domains that range $500-$2000, to get down to the nitty-gritty, he wants to throw words like 'statistically' around, we can debate all day.
     
  11. Recons.Com

    Recons.Com Top Member VIP

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    You seem to struggle with basic math. He said "average $100". So, if you are buying in closeouts + auctions, you can have a great mix of names there.

    You buy 20 names at $13.5 ($5 closeout) + 10 names at $19.5 ($11 closeout) + 10x$60 (auctions, but cheap in $21 to $100 range roughly), then you still have around $4130 for 10 name at average of $400+
     
  12. JB Lions

    JB Lions Top Member VIP

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    I would rather see actual sales from him on these type of domains he has hand regged, instead of blanket motivational posts.

    These are actually easy to figure out if you do simple Google checks. They're usually .com names of companies.

    AnchorTrading.com could be anchortradinguae.com

    https://www.google.com/search?clien...0..0.90.90.1......0....1..gws-wiz.ALo-pxvC5uY

    InfraBuild.com could be infrabuildcement.co.za

    https://www.google.com/search?client=firefox-b-1-d&q=InfraBuild

    So basically you're just looking for company names in .com that are on different extensions. Get enough of those, you're going to hit on some. Those are a lot of his sales that get reported.
     
    Last edited: Apr 20, 2019
  13. JayT

    JayT LIFESAVINGS.ONLINE

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    No you struggle, if you say 50 domains that will ultimately result in a $5k investment, of course the average is going to be $100. I never said that isn't true, so why quotation that? His numbers are all unrealistic, He error to $9 renewal cost even! He's biased in all calculations and very confused in the asumptions. A hand reg is just as likely to sell for as big of profit as ANY domain. Why even compare it? This thread is about hand-reg and he has a MO to derail and promote buying on platforms (and I will 'assume' .com only too).
     
  14. Ostrados

    Ostrados Entrepreneur VIP

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    Wow so your selling rate for hand reg domains is 2/40 = 5%
    That is unrealistically high, higher than selling rate for any pro domainer here, are you sure you are telling the truth? or you are just trying to win a silly argument.

    Oh btw I would like to just ignore you because your comments are uneducated (no offense).
    thanks
     
  15. JayT

    JayT LIFESAVINGS.ONLINE

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    Again, OP posted and pointed out this was about being successful doing handreg. You come post a bunch of jibberish, unrealistic rates and assumptions to promote NOT HAND REG. you are working against us along with recons now.
     
  16. xynames

    xynames XYNames.com PRO VIP

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    Maple I'm curious - since you're the OP who started this thread - I'd ask: I've observed that you've spent or tried to spend a lot of money on domains past couple years. How have sales been?

    I'm at the opposite end - most every domain XYNames has acquired was years and years ago. Acquired very few past couple years, sold MANY.
     
    Last edited: Apr 20, 2019
  17. Recons.Com

    Recons.Com Top Member VIP

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    40 is too small of a sample size. You can have 10 hand regs and sell 2, especially if you are ok with xxx$ sales, and it might look like achieving 20% sell through, but it is still bad business and much worse than passively selling 1% out of 10,000 names with very small additional work needed besides renewals etc for $2000 average post commission.

    In first case, you'll make from couple hundred to couple grands, in the second, even after renewals, you'll have around $120,000.
     
  18. JayT

    JayT LIFESAVINGS.ONLINE

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    I have more than 40 domains after doing this for some years...can you people assuming go away? I plan to grow way past whatever % I have in the coming years too. Guess what? All hand reg!
     
    Last edited: Apr 20, 2019
  19. Recons.Com

    Recons.Com Top Member VIP

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    I checked your website. You have around 1300 names listed, some really great ones, but also many of those you can re-stock at $8-20 range from the closeouts or even drops. Just curious, why are you acquiring "very few" past couple years?
     
  20. Ostrados

    Ostrados Entrepreneur VIP

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    In case we are talking about average selling price of $2500 per domain, as in my calculations, then the selling rate of 5% for hand regs is very high. I know I can get 50% selling rate if I sell at $20.

    Also it could happen that 1 domainer get lucky and sell 2 out of 10 hand reg domains at $2500 each (or even more) within 1st year but that would be statistical fluke of 1 out of 100,000 domainers, also it is not maintainable on the long run (ex: the extraordinary high rate will not repeat in the upcoming years)
     
  21. JayT

    JayT LIFESAVINGS.ONLINE

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    @recons I turn down $xxx on multiple domains. I have domains I want millions for, and know I can get. I don't care if I have 10 domains or 100 domains. I have what I have because it's what I want. I don't think one domain is better than another. I know all that matters is who wants it and how bad. Sure there are probability, but I also know suggesting .2% sell though rate was stated to misguide us. If anyone is doing this, you are a COMPLETE NOOB <- stop domaining and find a new hobby!
     
  22. Recons.Com

    Recons.Com Top Member VIP

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    Would you mind sharing link to your portfolio and info on what you sold and for how much?

    "Wanting" doesn't matter, btw. You might want "billions" and that is useless info for the subject.
     
  23. JayT

    JayT LIFESAVINGS.ONLINE

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    okay check out lifesavings.online and only scratch the surface (adult content on url don't go if you aren't old enough).

    EDIT/ADD: No, i'm not sharing my sales...how rude of you!
     
    Last edited: Apr 20, 2019
  24. boker

    boker Top Member VIP

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    Ok, your calculations are in so many way wrong that it's hard to choose where to start. First, I wonder why so many errors if you are a domainer from 2011? First, why do you count 9$ for a handreg, when you have big players like dynadot, namesilo with $5 $6 offers all the time and if you count the smaller players, like lcn and others, you can get to at least $3.8 on average(believe me), without risking with unknown registrars. Also, after 8 years in domaining you don't seem to take in account that for a hand reg portofolio, more than for an aftermarket portofolio, you are curating your domains at the end of the year, based on views, inquiries and others, so you don't renew all of them, probably at best 60-70%. Also, probably you don't count any outbound done, because if you know what you are buying, for sure you can do some sales from reaching out to end users just to cover all your expenses. Also, because your average acquisition cost is so low, 3-4$, you can afford to negotiate a lot on the price and sell some for $500, $700, $1000 which will leave enough profit and and will raise your STR much more than for your aftermarket portofolio,(way more). And I could go ahead giving you exact numbers, but probably it's not worth it. If you want to tell me that with 5k investment(even counting just 500 domains) you are doing only one sale of 2.5k in one year, than something is wrong with you and you should start a poll to see how many sales are made by a domainer with 500 domains( we are not taking about first day domainers)

    I will not say anything about the aftermarket acquisitions, where $50 on average it's not viable for a quality portofolio,(even if you hunt just brandables for BB, BP and others) the competition is so high and the costs are going to the sky.
     
  25. boker

    boker Top Member VIP

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    @Recons.Com I can share some sales and some numbers from my own portofolio if you want. Let's take for example 2017, because out of around 800 domains, I've sold roughly 23 domains to end users(prices mid xxx to low xxxx) and I've sold 357 or so to other domainers, making xxxxx profit on both sides. I never lost any money on any given year from 2015 when I've started, I've never acquired any aftermarket domain, but I know what I'm buying and testing multiple strategies all the time. Soon, I would do a test , investing the same amount in just aftermarket domains and just handreg in the same time frame(2 years) at the end I will share my results, but I'm doing this with some experience already, so this will not work for everybody who started today.
     
    Last edited: Apr 20, 2019

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