NameSilo

How many of you got RICH investing in .com names in 2020 - 2021?

Labeled as debate in General Domain Discussion, started by Brands.International, Apr 17, 2021

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  1. Seventy

    Seventy Established Member

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    Would for sure not call it rich but sold around 250k USD of profits with domains. First year I decided to actually sell and connect in the domain industry and both names got sold through two different brokers.

    Love domains and slowly turning it into more of a main business instead of just collecting, have a hard time letting domains go.
     
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  2. jhm

    jhm Glazed

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    I don't think "many" got rich investing in domains, let alone in one year, unless you happen to own a juicy, one word ".com" or two.

    Mostly, I hold. I'm in the industry for business and sentimental reasons, I just enjoy being in the game. Sure, its nice making a killing on a name, but its gradual, and I think anyone with experience would agree, things develop with time, many situational things. Outside of some of my .com's within my portfolio, I own premium IDN's in Asia, as a speculative investment. At present, they require specific buyers due to them being tricky, but I am convinced the ".com's" of certain IDN's (mainly China) are going to come out in popularity. But again, pure speculation, and no guarantee. China control their ways, which makes me believe they will further control their online with their native language.

    Did I get rich in 2020? And how am I doing in 2021 - My answer is comfortable, .com remains relevant
     
    Last edited: Apr 17, 2021
  3. Silentptnr

    Silentptnr Top Contributor VIP

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    In the 5 or 6 years I have been investing in domain names, I have seen my revenue increase substantially year after year. And I don't do anything to sell them other than list them and put on landers.

    For example, this year (2021) I have seen steady cumulative sales above 10 per month. Last year (2020) is was about 5k average per month. 2019 was about 4k average per month with NJ auctions. 2018 was about 3k per month.

    Have I gotten rich....no. Have I closed my business to become a full-time domain seller....no. Am I extremely pleased with progress and sales....absolutely. Was I ever looking to become rich from domains....no. Do I believe I will enjoy spending 100% of my time domaining during retirement....yes.

    My domain portfolio is profitable for sure. That's what matters to me.

    I love managing my domain portfolio. I like analyzing the traffic each month, the inquiries, registering and buying new names, etc. For me, it's a passion. The money is wonderful validation of my intuition.
     
  4. twiki

    twiki Top Contributor VIP Gold Account

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    It all depends on what one considers as rich. I'm probably rich, though I'm living a simple life. I like comfy but most rich people are spending on luxury which I feel as mostly pointless unless it has a very practical benefit to me.

    I'm rich by my own and local standards. I'm not rich by US standards for example. Where I live (Eastern Europe) I can currently buy an apartment with one year's worth of domain profits. High 5-fig in euros. That's not very much, but it's something. Everyone around me thinks I'm rich. So I might be, at least per local standards. I must also say that I currently have other business bringing another good portion of cash per year. Domains just add up. I have no financial stress for the future - that makes a person rich in today's world, I think. How many are able to say that with 100% certainty.

    I'm able to have enough personal time, and get the things I want and able to pay studies for my kid at the best university in London. That makes a dad rich, I think. I have people working for me on all things including domains, so I save time. That's a business, where you don't do everything.

    2020 was the year when I broke into profit with domains. I must say that I'm a long time businessman so I knew what I was getting into. Did some well balanced projections from the start. They matched the reality afterwards, and still do.

    In the first couple years I've burned money - to learn fast. I had a budget and knew exactly what I was doing. My only drawback was lack of names' experience. So I had to beat that - the fastest, the better. Time is the most precious thing.

    I always work with a budget. Business has taught me over the years that you cannot make a business without a budget. Because money is made with money. Anyway - domains, I knew it was worth it for me, right from the start. I had that special feeling that although I don't know enough about it yet, I'm born to do this. Be a domainer.

    In the old days I used to own and flip some 4L .coms but then I got out of that. So for me it's a return to a business I've ignored for about 15 years or so. Been busy to do other things meantime.

    But the most important thing in m model is precise business projection. Which so far has never been wrong, again due to experience over years in doing that.

    I know for sure that in a couple years I'll be into solid 6-fig range in profit and looking up to final goal of exceeding 1M / annum. Have had one of the fastest sales growth ever in domains, I think. There was some calculation here in one of the posts (don't remember exactly which) about how and how much you can grow in domains over the years. I checked against that and my growth rate was far better. I'm looking at domains as a business, not a side gig, not a personal investment, although that is also fine for others - everyone has their own approach, goals and situation. (Edit: Funny competition thing, I have friends doing that 1M+ per annum in business profits so I can't wait to match them sooner and celebrate over a bottle of fine drinks. In fact I've already told'em I'm all set to get past them and right in front of the pack).

    My model is multi-segmented, I have all sorts of domains in different tlds. So you can't really put me in a given category as I'm all over the place. I make profit in most of these segments. I lose money in some. This year I'll be losing about 15-20k (estimated) in various tests, but assumed losses. But overall even with that small loss I will still be nice profit. In fact I am already.

    My next immediate goal is to reach $1k/day in sales. I'm not there yet but it is approaching. Each day there is improvement, each day I make some progress. When I started this could not fathom how much you can learn in domains. Now each day I find out there's even more to learn than I could figure out the day before.

    I sell at all prices, and any price. I sell daily, and sometimes hourly. 4-fig, 3-fig, even 2-fig clearances. It depends. Haven't sold 5-fig yet but I have some and there's time for that. I keep money rolling. I don't get in love with any of my domains. Everything is for sale. Make me an offer, you might get lucky.

    Often I sell a 4-fig domain for 3-fig and people tell me I undersold it badly. Believe me, I know. But I also know exactly what I am doing. I'm keeping cashflow good, and with that domain I can buy tens of other domains like it. There is still a ton of domain value to purchase, catch of even hand reg if you know what you're doing. So I have a ton of volume - much more than I could renew, unless you do the math right and have that cashflow as well to keep them renewed and still make profit for yourself, and still grow fast. A business that is not always growing is a dying business.

    Edit: People always ask this: "How much is my domain worth?" Instead of asking, "How much can this domain be sold for in the next 2 years, and actually get sold?" It doesn't matter if your domain is worth 200k if nobody, ever, gets to buy it because you keep that price high and it all turns you into a collector, not a seller.

    If you get in love with domains, you're creating scarcity - for yourself. I always sell, discount, liquidate a portion of my assets constantly, only to keep the portfolio growing, and fast. Again business experience teaches you things over the years.

    There are a ton of models out there and so far I haven't seen one like mine, but who knows. When I'll get older and tired I will probably stop growing and simply focusing on retail sales. That's a good model but not necessarily useful for me today. Edit: And I really love managing my names, indeed passion is at play.

    Unsure how all this info helps others however. I know that my model is based on a lot of things I do different from a different position that most are unable to (e.g: significant budget). So it's not something extraordinary but would be hard to replicate without those particularities. Overall, I can say that yes, you can get rich with domains, but few will and you need to be very good at a least one thing or couple things, far better than others, in order to achieve that goal.
     
    Last edited: Apr 17, 2021
  5. scithe

    scithe Upgraded Member Gold Account ★★★★★★★★★★

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    You can visit this post here, there's over 800 pages of posts showing sales and often include the COGS to go along with them. If you see more .co.uk sales then .com then I guess that is where the millions are being made. So far it looks like .com is still king.
     
  6. scithe

    scithe Upgraded Member Gold Account ★★★★★★★★★★

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  7. CTUXSF

    CTUXSF Upgraded Member Gold Account

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    New to domaining, started in Dec 2020, even though I bought my own name dot com more than twenty years ago. But that was just so I could hand build my own blog. Now a little holiday fun has turned into a daily obsession. I put myself on a budget and a crash course to learn. I made my first sale this March selling two LLL.coms at auction for $xxx each on the same day. One I made almost 100%, the other a loss. Overall loss for both, I will say. So I’m still in the red, but I’ve made my first sale and I know how that works. I’ve learnt not to fall in love with my names (if I want to go beyond a hobby). I’m buying in different TLDs, listing in different marketplaces and learning all the tools, mechanics and nuances. Reading blogs, newsletter and forums, listening to podcasts, attended Namescon.

    When will I be rich? When I figure out:
    - what’s the right price to buy something (you make profit on the buy)
    - what’s the right price and place to sell
    - what’s my niche
    - when I don’t need to sell

    The best part is I can see myself being engaged with this for a long time. Domaining opens me up to new worlds, makes me learn new things, meet new people, think in new ways. I’m in the red but have been strict about my budget, track my outlay and renewals, make sure I’m getting stricter in appraising names. My portfolio is small and mostly throwaway, as I now realize, but it’s money I can afford to lose. I’m also getting revenue by winning naming contests at squadhelp (three already) so that’s something unexpected and fun, and it’s help8ng me learn about brandable names, too, how businesses nothing about names, and also what are the businesses willing to pay for names.

    One truism is invest in your education before you invest in names. So I highly recommend DNAcademy, a few hundred dollars on yourself instead of sinking it into crap names.

    As long as I’m improving in how I assess, how I buy and sell, then that’s profit to me. Compounding gains.
     
  8. Recons.Com

    Recons.Com Top Contributor VIP

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    And what kind of starting capital would be needed for that? Someone needing and making 50k after investing 1 million is a success, while someone who had 20k to invest, made 20k profit, but needs 30k as salary is not?

    I am regularly making 50%+ on my .com investments and reinvestments and that is more relevant metrics than total made in a year. And yes, I still can find thousands of .coms to buy that are investment grade and will sell for xxxx
     
  9. Brands.International

    Brands.International Marek VIP

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    Thanks for sharing @Seventy, I think 250k is pretty good :) I too have a hard time letting my domains go, lol. It is great to hear you are turning it slowly to the main business.
     
  10. Brands.International

    Brands.International Marek VIP

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    I think what you describe @Silentptnr is something I would wish for all people. To be pretty comfortable with our domain holdings, and also have some good (and profitable) hobby in case we need some fun in retirement years!

    I am following you here for a long time and I am aware that you are putting a lot of effort into it, and reading your post now you have apparently good results as well. Thanks for sharing this :)
     
  11. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    The real question is how much are you in the hole investing in nGTLDs in 20-21.
    I have been tracking a few other nGTLD investors who bids 500-600 for ridiculous names.
    None of their nameservers haven't changed.

    But a lot of .coms were sold in 20-21.
    A lot of .coms sold in 20-21 were short Holds too.
    Just look at the sale report thread.

    Not a single nGTLD.

    On the last page I see PayVo.com
    Name doesn't make sense when looked at a real word standpoint, but it was bought in March for 400 and sold in April for 17000 as reported.

    People are still buying cheap closeouts for 20-60 usd, thousands of backorders everyday and hundreds of sales.

    There are many people here in the forum who sells 2-5k range domains everyday.

    I started domaining in Mid 2020 and since November, I make 4-5 end user domain sales every month and increasing as my portfolio grows.


    I don't like Rick Shitting on nGTLDs, but other than self promoting your own investment, brand, you hardly ever do anything to promote nGTLD.

    If you want to grow the nGTLD market, you need to help others understand the market, educate more, show your sales.

    You didn't even reply to my PM when I first asked you a simple question about some nGTLD I was interested in, while the rest of the domainers help each other, try to grow together etc. I am not being bitter that you didn't reply. Thank god you didn't, because I did my own research and found that the good SLD.TLD worth investing are all reg premiums, and the secondary investors hardly sell.

    But for @Nikul Sanghvi very few people would have been investing in .co, promoting them, growing the market.
     
  12. Recons.Com

    Recons.Com Top Contributor VIP

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    Congrats on your success! Is 10 per month referring to number of names selling or money as in $10k?

    What is the size of your portfolio now?
     
  13. Recons.Com

    Recons.Com Top Contributor VIP

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    Great detailed post!

    I am also growing my portfolio fast, but don't do small sales, as I am putting very high price tag on my time spent on finding names, listing, doing the transactions, correspondence etc.

    It makes much more sense for me to list at $1800 to $3000 for 95% of names and get around 1.5% sell through. All while doubling the portfolio size annually.
     
  14. Recons.Com

    Recons.Com Top Contributor VIP

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    Could you explain this part? I want to understand how your math works?

    If you can buy for $5+$8.47 = $13.47 from GD closeouts and sell for $2000, why exactly are you better off working at McD?
     
  15. Sumeeth

    Sumeeth DomExpert Epik.com Staff VIP

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    I Do domaining as a side hustle.

    Am i rich? Big No.

    Am i happy with domaining side income? yes, so far - in profit till now and enjoy domaining.

    What type of domains i invest in? Mostly .com (and very few others like .co, .io, and NGTLDS) and 99% are Handreg domains in my portfolio. Kinda addicted to Handregging domains and i love it as i feel it makes me to go deep in to new niche and research and dug out new keywords.

    My suggestion for nGTLDS domain investors? - It is not good idea to invest only in NGTLDs atleast in next 5 years. Diverse your portfolio may be 80% .com + 10% (.io , .co etc) + 10% in nGTLDS. because i never seen end users excited on new GTLDs when i approach them with non .com domains as an outbounder.

    @Brands.International , I also would like to know from you as a full time new GTLds domain investor, from past few years, How is your experience so far regarding Ngtlds sales? Did you become rich? or Are you really in profit till now. If you answer these, it will also help others especially small domain investors like me to plan in diversifying portfolio.

    Hope it helps :)

    Thanks,
    Sumeeth
     
  16. twiki

    twiki Top Contributor VIP Gold Account

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    That's cool - note, there are more ways to achieve the same goals. In the end what matters is profit.
     
  17. Recons.Com

    Recons.Com Top Contributor VIP

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    Absolutely! Your way has huge merits and if I had proper data that can be obtained only through own experimentation, I might be considering it as well as parallel strategy. That is time consuming to explore for me. Hence sticking to what is working for me. Not saying that my way is better.
     
  18. Silentptnr

    Silentptnr Top Contributor VIP

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    Money. This year has been my best so far. Thought January was a fluke but the sales kept happening in Feb and Mar. April isnt over yet, but I'm close this month too.
     
  19. twiki

    twiki Top Contributor VIP Gold Account

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    Same here. Also sales are close to the same number, a bit lower but approaching that.
     
  20. ReallyBigIdea.com

    ReallyBigIdea.com Restricted (Chatroom)

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    why do you ask? keep investing in new gtlds
     
  21. Brands.International

    Brands.International Marek VIP

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    @blogspotter thank you for your post!

    I do apologize if I missed your PM - in most cases I do answer everyone, so I probably just missed it unintentionally.

    This thread is solely on .com investing, so I do not want much to venture to new gTLDs here, it would be off-topic. But to at least quickly answer your question, I built the majority of my portfolio in sweet times around 2016. In 2021, I find it a little difficult to actively purchase domain names so they make sense from an investment point of view. I guess in 2021 I purchased only casino / cool and flame / dance, that was it. So very low investment costs on my side. I was heavily buying mainly during 2016-2019 and finalized the construction of the portfolio early in 2020. At the moment I would only buy if I see something really good with a low renewal fee, but domain investors and registries got much more clever comparing to 2016 as well, so no one is going to sell such domains to me unless I would overpay heavily.

    I will definitely open few threads this year where we can discuss in detail new gTLDs :)
     
  22. Brands.International

    Brands.International Marek VIP

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    just answered above :)
     
  23. Brands.International

    Brands.International Marek VIP

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    Hi Sumeeth, thank you for your reply! As answered above in another post - I get your questions and we can discuss new gTLDs in a separate thread and time, and we will, but this one is purely about .com investing :) We need to be on-topic strictly here, otherwise, if we drag new G's into it, I bet it will become quickly one of those new G's vs .com typical warzones :)
     
  24. Brands.International

    Brands.International Marek VIP

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    @Recons.Com if you can do math in your example consistently, month after month, then, of course, you are better to do domaining than McDonald, sure :)
     
  25. Recons.Com

    Recons.Com Top Contributor VIP

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    That is the idea. If you buy investment grade names (those that can sell at 1%+ str at $2-3k pricing), it is given to be month after month if you have sufficiently big portfolio.
     

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