Domain Empire

question How much do you have to sell per month to cover your expenses?

NameSilo
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Fancy.domains

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I have a portfolio of (just) 500 names and to compensate for my renewal fees and taxes, I will have to sell for about 850 dollars a month, on average, to break even. Note that I am not including any salaries, rental costs, internet and hardware expenses etc. in this "equation".

How about you?
 
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Nowadays I keep a very small portfolio, so it's a lot more manageable for me. Where I used to have anywhere from 100 to 350 domains at any given time, I'm maintaining 15 to 25 at any given time these days. 95% (at the moment) are developed and pay for themselves every year so I'm not out of pocket for renewal costs. The developments even pay for the hosting, email, privacy, and other related services. One day, maybe I'll sell one of them, if not, I'm fine with keeping them since they don't cost me anything and I still make a profit each year (after expenses).

I cycle them every 3 to 6 months, drop or sell a few that stopped producing as much and then find some more to develop, test, hold, and create a small revenue stream with so that I can build up a cyber-retirement network. It's needed since I've been a freelancer/independent contractor most my life and don't have a 401k or pension to look forward to.

There's a lot of different investment strategies out there and this is one of mine. It focuses more on consistent monthly returns on my investments and has the one-time sales lower down the ladder of priorities. When it's meant to be, it will be, but until then, my domains must pay for themselves each year or they lose their place in my collection.

I'm a mom & pop online business venturer.
 
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With a portfolio of just over 1,500 domains, I have to sell domains for about $1,200 per month to cover up just the renewals.

When I had around 700 domains, my parking revenue was 350-400 p/month and I used to pay 40-50% of renewal fee from parking itself.

Now a days, parking revenue has declined so much that with 1,500+ domains parking was like $300 p/month so I recently decided to take off all domains from parking and keep sales form page which IMO has little bit increased the inquiries. Keeping this in mind, overall the picture looks better as $300 is worth not much on 1,500+ parked names as well as considering I have to factor the increase risk of UDRP while my domains are parked and PPC earnings are just next to nothing.

There is no tax on buying/selling of domains in my country (Pakistan) so all the profit comes in pocket excluding buying cost, renewals and brokerage fee (if there is any).
 
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Your question complements another question: "How much do I actually sell per month?"

With the answers to both of these questions, you'll know your operating profit per month, which focuses on holding costs and not cost of goods.

Though, Domain sales are cyclical. 500 domains isn't enough to think about this question in terms of months. In all likelihood, you need to think about it in terms of quarters or years. Then you can calculate the arithmetic mean and ask:

How much do you sell on average per month? :bookworm:

But I caution you against thinking in terms of months with a portfolio that size, averaged out.

Anyhow, these are fascinating questions that every business owner should answer. (y)
 
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Your question complements another question: "How much do I actually sell per month?"

With the answers to both of these questions, you'll know your operating profit per month, which focuses on holding costs and not cost of goods.

Though, Domain sales are cyclical. 500 domains isn't enough to think about this question in terms of months. In all likelihood, you need to think about it in terms of quarters or years. Then you can calculate the arithmetic mean and ask:

How much do you sell on average per month? :bookworm:

But I caution you against thinking in terms of months with a portfolio that size, averaged out.

Anyhow, these are fascinating questions that every business owner should answer. (y)

I am making an overall profit and I am tracking this thoroughly. If I wouldn't make a significant profit, I'll quit domaining within six months. I sold my first domain almost 20 years ago, but I have only been in this (for real) since 2013.
 
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