question Hand-reg vs name drop - Is name drop necessarily better?

[Vivi]

I've read some threads here mentioning hand-regs vs name drop, and many of these suggest that expiring names are more valuable than hand reg. But on the other hand, wouldn't it be fair to say that all a name drop means is that at least one person liked the name? Which is not necessarily a big advantage over a hand-reg?

Whether you agree or disagree, I'd love to hear your point of view. I'm just here trying to learn from those who are more experienced.

I have an actual case study in mind here to back up my viewpoint: When I set up my first blog several years ago, I hand-regged a domain name for it - an 8-letter 2-word .com. It was something generic, not related to the topic of the blog. I don't want to say what the domain was because it's currently for sale in a domaining company's portfolio, and I don't want to muddy the waters. Anyhow, the domain name was something along the lines of 2 unrelated words (e.g. Purple Bananas .com - although that wasn't it). I blogged for nearly a year, but I got too busy to keep it up, and that particular blog wasn't really earning much, so I lost interest. So when it came time to renew the domain, I decided to let it expire. One of the things I'd eventually come to dislike about it was that it failed the radio test, due to alternative spellings/meanings of one of the words.

Anyhow, a few months after I let it expire, I did a whois on the domain and I noticed someone had bought it. I was eager to see if they had set up a blog or company with the name, but no. The domain was registered in the name of a domaining company, and had a $x,xxx price tag to it. This was a few years ago. It's still registered with them, still with a $x,xxx price tag. I think it's over-valued, but that's just my personal opinion - I wouldn't hand-reg it again for reg fee because of the radio test issue.

So, in that situation, wouldn't it be fair to say that name drops are not necessarily better than hand-regs? It might have been registered for a reason, sure, but (mine at least) also got dropped for a reason.

Any guidance or input on my reasoning please? I'm not necessarily looking to be agreed with - if there are holes in my reasoning I'd like them to be pointed out. I'm simply wanting to learn from those who are more experienced, and getting multiple points of view here helps me a lot.

 

[golan]

If we talk about SEO domain market, only drops are valuable there. Otherwise, it doesn't matter.

 

[Vivi]

@golan - thanks, the reminder is helpful for cases where a certain level of traffic is of value.

 

[Willox Perez]

A lot of great points have been mentioned and a pretty good debate is going on. The only concept I can add is the simplistic way of looking at domains within their natural domain cycle and understanding there will be crappy domains and great domains both in hang regs and drops.

Pre Release (Stage 1 - here you will have the highest chance of finding some quality domains. Also when you win one of these they keep their original age when it was created)
Downfalls:

• Can get a bit pricey since everyone will be fighting for these names but some will slip under the cracks just be consistent in filtering.
• The owner of the domain can still register the domain back.

Pending Delete (Stage 2 - 42 to 45 days after the domain goes through pre release without anyone bidding now you can catch these on the drop for a descent price)
Downfalls:

• Will loose the age and it will be as if you register this domain.
• Less quality names as many of the good ones get snatched at pre release stage.

Handregs (Domains that go through the whole cycle without being touched just simply are again up for grabs)
Downfalls:

• Here is your lowest chance of finding quality domains but of course some can make it all the way here but just very rare.

A lot of times domaining can be pure speculation but understanding the cycle means you simply must do your best to put yourself in the highest possible chance of getting a valuable domain name. You can budget accordingly. Instead of buying 4 o 5 handregs , save the money and get yourself a higher quality name.

- Will

 

[serryjw]

A lot of great points have been mentioned and a pretty good debate is going on. The only concept I can add is the simplistic way of looking at domains within their natural domain cycle and understanding there will be crappy domains and great domains both in hang regs and drops.

Pre Release (Stage 1 - here you will have the highest chance of finding some quality domains. Also when you win one of these they keep their original age when it was created)
Downfalls:

• Can get a bit pricey since everyone will be fighting for these names but some will slip under the cracks just be consistent in filtering.
• The owner of the domain can still register the domain back.

Pending Delete (Stage 2 - 42 to 45 days after the domain goes through pre release without anyone bidding now you can catch these on the drop for a descent price)
Downfalls:

• Will loose the age and it will be as if you register this domain.
• Less quality names as many of the good ones get snatched at pre release stage.

Handregs (Domains that go through the whole cycle without being touched just simply are again up for grabs)
Downfalls:

• Here is your lowest chance of finding quality domains but of course some can make it all the way here but just very rare.

A lot of times domaining can be pure speculation but understanding the cycle means you simply must do your best to put yourself in the highest possible chance of getting a valuable domain name. You can budget accordingly. Instead of buying 4 o 5 handregs , save the money and get yourself a higher quality name.

- Will

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Will, I have to disagree with you definition of 'hand regs'. MY hand regs (virgins) have never been registered. I focus on emerging technologies and domain hacks. As I have mentioned before, I am a retired senior with limited funds. If I am going to play in this space, I have to do something that few are doing. I am no problem cold calling since I predetermined my prospect list before I hand reg the domain. I still have them on GD auction but I use it more for legitimizing my ownership and a starting point for selling amount.

 

[frank-germany]

hand regs to me are domains that you were able to register for reg fees

 

[Kate]

Will, I have to disagree with you definition of 'hand regs'. MY hand regs (virgins) have never been registered. I focus on emerging technologies and domain hacks.

Emerging technologies/predictive domaining is a particular category. But the question remains: will they ever sell ? How long will it take ? Not all domainers can afford to sit on their names for 15 years and make no sales. There has to be some liquidity to keep the machine running. But that depends a lot on personal circumstances.

As I have mentioned before, I am a retired senior with limited funds.

We are all operating on 'limited funds' of course.
However the arguments is not valid when it comes from domainers who own hundreds of domains in their portfolios. They buy handregs precisely because they are short on funds, but they eventually spend a lot of money without realizing it.
Rather than buy 500 handregs they could have bought 50 or just 10 prelease domains at a higher individual price. But at least they would own more solid domains, and the sales prospects would improve significantly. Not to mention the lower renewal costs. My best sales have always involved domains acquired as prerelease.

As you can tell - I'm teasing ya

 

[serryjw]

Emerging technologies/predictive domaining is a particular category. But the question remains: will they ever sell ? How long will it take ? Not all domainers can afford to sit on their names for 15 years and make no sales. There has to be some liquidity to keep the machine running. But that depends a lot on personal circumstances.

We are all operating on 'limited funds' of course.
However the arguments is not valid when it comes from domainers who own hundreds of domains in their portfolios. They buy handregs precisely because they are short on funds, but they eventually spend a lot of money without realizing it.
Rather than buy 500 handregs they could have bought 50 or just 10 prelease domains at a higher individual price. But at least they would own more solid domains, and the sales prospects would improve significantly. Not to mention the lower renewal costs. My best sales have always involved domains acquired as prerelease.

As you can tell - I'm teasing ya

-----------------------------
Kate, Let's have this conversation at the end of the year. Either I sell them or I am out of the business. I can spend my time on other projects that will give me a better ROI

Happy Holiday,
Serry

 

[ivey]

It's the name in itself that's better.

Not whether it's handreg, parked or dropped...

Your part is to choose good names.. end users don't give a crap if the name dropped in 2013 etc..
we are domainers so we look on all the details.

Every enduser I've met personally didn't even have a thought exist in their mind about handreg or dropped...
They just wanted the name and to know the cost...

The real question you should be asking is: Is my business catered to domainers or endusers???
If it's to domainers then all those details like time regged, dropping etc will matter...

 

[serryjw]

It's the name in itself that's better.

Not whether it's handreg, parked or dropped...

Your part is to choose good names.. end users don't give a crap if the name dropped in 2013 etc..
we are domainers so we look on all the details.

Every enduser I've met personally didn't even have a thought exist in their mind about handreg or dropped...
They just wanted the name and to know the cost...

The real question you should be asking is: Is my business catered to domainers or endusers???
If it's to domainers then all those details like time regged, dropping etc will matter...

-------------------
Thanks for cutting threw the rhetoric. I decided a few years ago that I much prefer to cold call to end users. Like I said, I'll give it another year. If its profitable than I stay, if not I'm done.

 

[Vivi]

Wow, a lot of helpful food for thought here. Thanks to @Willox Perez for explaining things in terms of a cycle, which I'd never really thought of before that way, I'd just thought of domains as being available for hand reg or not.

@serryjw thanks also for trying to distinguish between never-regged names versus those who have dropped and are available for reg fee. I take the point of @frank-germany that this distinction may not necessarily need to be made when defining "hand-reg" although I understand that the domain history may be important to the buyer.

@Kate and @serryjw , thank you for each of your views:

My best sales have always involved domains acquired as prerelease.

- thanks Kate, this info was very helpful to me. I appreciate you sharing your experience.

Either I sell them or I am out of the business.

- thanks Serry, and it's a good reminder for all of us.

Kate and Serry, although your angles are different you both were helpful in pointing out to me that at the end of the day it's about being able to actually sell the domains, whether hand-reg or name-drop or pre-release.

@rivey001 thank you too for the advice about focusing more on the name yet also warning me to take into account who I would be planning to sell to - domainers or end users, since domain history could have an impact if it's to domainers.

I decided a few years ago that I much prefer to cold call to end users.

That's really great. I bet that cold calling end users isn't easy and it's inspiring that this is your business model as opposed to more passive methods like listing on auction sites (although that's not exactly passive, but hopefully you know what I mean).