Dynadot

question How much I can make with domain investing

NameSilo
Watch

Maxleron

Established Member
Impact
12
Hello Domainers, I wonder how much I can make from investing in selling domains as a monthly net profit,
I need experienced people full time working in the field to give me hint what is the average profit they are making in month and thanks
 
0
•••
The views expressed on this page by users and staff are their own, not those of NamePros.
It depends on your budget and skills. Anywhere between $0 and $1 billion.
 
18
•••
People tend to exaggerate things if they don't have a answer :guilty:

This is not a franchising where you can fairly safely make a projection.

A lot depends on your skills and ability to figure out which names have 0.5%-2% chance of selling in any given year. That is 80% of the success pretty much. If you figure it out, you can scale up into 6 digit profits a year. You also need some cash, as you need 6 digit figure tied in investments in quality domains and also have enough funds to cover renewals.

All in all, you can make 20% to 50% return on your investment, if EVERYTHING is done right and also you don't invest any serious money the first year while you learn.

Word of caution: 50% of investors lose money in this business, 75% either lose or hardly break even or make peanuts.
 
13
•••
it depends entirely on how much time u invest into it

domaining is exact opposite of quick easy money
 
9
•••
Hello Domainers, I wonder how much I can make from investing in selling domains as a monthly net profit,
I need experienced people full time working in the field to give me hint what is the average profit they are making in month and thanks
You will make between 3-10 billion per year as long as your willing to invest 5 hours a week and at least $100.

This guy gets his kicks out of making these idiotic posts. Don't encourage him by wasting your time trying to give real answers. His sole purpose in posting is to get a rise out of people. Just take a look at his other posts if you have any doubt.
 
9
•••
Most domainers do not make money out of buying and selling domains.
 
8
•••
How much you make is directly correlated to the amount of work you put in analyzing market trends, studying profitable sales and outbounding potential buyers. You may also get inbound offers, but the reality is you can't rely on just that. At some point you may also consider developing a few names to create recurring monthly revenue.

As stated above there is no average. Put in the work and you'll reap the benefits. There is no perfect path to profit. The only thing that's guaranteed is the mistakes you make along the way. Whether or not you learn from them is up to you.
 
Last edited:
7
•••
While the question may seem straightforward, @Maxleron, there are no simple answers. As others have pointed out, it depends on skill, how much startup funding you have, how much energy and time you want to put into it, and I would add luck. Some manage to hand register a domain name and sell it for $$$$ right off, others slave away with equally good names waiting years for that first sale.

Here are a few numbers and thoughts....
  1. There are about 220 NameBio reported sales per day. We all know that there are many others, 5x that, 10x, some other factor.
  2. There are over a million people registered at NPs. By no means equally active. But you can see that most of us will not have NameBio reported sales very often.
  3. We all know the anecdotes of big sales, someone (put in your favourite big portfolio holder here) bought a domain a few years ago for $200 or $50 or even $12 and sold it for $20,000. But for every one of those there are many many more that will never sell and money is lost on. It is called survivorship bias in conventional investing, but people focus on the success and overlook the failed mutual funds / or domain investing names that never sold.
  4. On average, the entire domain investing community loses money. I am not at all saying everyone does, and I know some on here do very well, but on average, when people are really honest, I am totally convinced by the numbers that acquisition and holding costs exceed net returns. I am going to post the analysis, but not yet finished checking that.
  5. So to make any money you need to do significantly better than the average.
OK so you plan to be disciplined, hard working and much smarter than the average investor on here. How much might you make. I will do a calculation and you can insert your own numbers.

Example:
Let's say you have $25,000 to start with. You buy domains on average for $125 each (some more and some less). Your portfolio is then 200 names. It depends on how smart you are what the throughput is, but an optimistic number is 1 domain name in 100 will sell in a year so that you will have 2 sales in the year. Congrats! The average selling price on NameBio is $1377 as of today so far in 2018. But that figure is deceptive cause those big $100,000 sales that most of us will never see handled by the high roller types, and indeed some registries and brokers, account for a lot of the high end. So instead we should look at the median price. NameBio no longer display that in stats, but you can for a small set look at it easily. Yesterday for example (Aug 5) there were 177 sales so you scroll through to the 88 th one and it is $271. Now maybe you will occasionally have one off the bigger sales, so lets be optimistic and even though most of the time you will be selling for $271 lets say it is $500. So you take in 2x$500 or $1000. They cost you 2x$125 or $250, but you still have $750 profit, not bad, right? No. You have those 200 domain names costing about $9 per year to renew, so your annual costs are $1800. So you only lost $1050. Welcome to domain investing 101. Do some people beat the odds? Yes. But if you want a probable estimate you will lose money.

I know this example will bring on lots of contrary opinions, but I offer it based analysis I have done as I look at the industry as a whole. If you do good names in good extensions and happen to catch the beginning of a wave you can get lucky. Even then, lets say you have two $5000 sales (and many days no one in this one million person community sells at that price on NameBio). But if you sell 2 at $5000 you will gross $10,750 before the $1800 renewal costs, or $8950. Congrats. That is a fantastic 36% ROI over one year, but only a few on here will achieve that.
 
7
•••
People tend to exaggerate things if they don't have a answer :guilty:

Thanks for all who really try to give his knowledge experience and for the people who always try to make fun of my topic hope you enjoyed your time have nothing to say about

People are trying to help with your question but there is no simple answer - like most businesses, people won't give you there exact figures. Investing in itself means 'to allocate money in the expectation of some benefit in the future' so those who have invested may not have made or lost money yet - it could take 10 or 20 years.

Throwing your toys out of the pram because you're not getting the answer you want is stupid. You obviously want everyone show you stats that show this is easy - it's not, end of story.
 
6
•••
People tend to exaggerate things if they don't have a answer :guilty:

dude.. you seriously need to stop asking what longtime exeprienced members make.. and put all your time and effort into becoming one.
cause its a crapload of time and effort to get there. let's not waste it on
beyond futile queries
heh
lol
 
5
•••
This is not a franchising where you can fairly safely make a projection.

A lot depends on your skills and ability to figure out which names have 0.5%-2% chance of selling in any given year. That is 80% of the success pretty much. If you figure it out, you can scale up into 6 digit profits a year. You also need some cash, as you need 6 digit figure tied in investments in quality domains and also have enough funds to cover renewals.

All in all, you can make 20% to 50% return on your investment, if EVERYTHING is done right and also you don't invest any serious money the first year while you learn.

Word of caution: 50% of investors lose money in this business, 75% either lose or hardly break even or make peanuts.

That's an honest reply and greatly appreciated...this obviously is a model that requires a learning curve and does not come with an easy button...the same goes with most most business models or online ventures. It will take time and testing and investment in the right education to make this work
 
5
•••
Most domainers just starting out don't have the capital or experience to properly invest in profitable names. In my first year of buying and selling just domain names (I developed websites prior), I ended with a profit of $1200. I also had a pretty sizeable portfolio of domains, some which sold the next year, some which I dropped (shouldn't have registered them in the first place - happens to everybody), and the rest I held longer or still have. So that first year ended averaging a net profit of $100 per month. I can't even begin to estimate how many hours I spent that year domaining. Good thing it's just a side business.
 
5
•••
I started domain business last 9 month and in the start i lost $150 and now my average monthly profit from domain business is between $400 - $500.
 
5
•••
Here are a few scenarios:

1. You come into this business with a nice bankroll and make smart buys and have the ability to hold and sell for nice profits. Rinse and repeat and make real money.

2. You come in and start learning while making smaller purchases, using them to learn even more about what sells, what doesn't and even why. Do this more than part time if you really want to be successful. You still may end up losing money but not as much as buying 1000 domains with zero knowledge and not selling most of them by the end of your 1st year. There are current examples of this right now in this forum from people who don't care to take advice from the pros here.

3. Don't read the forum or learn, spend a lot of money and lose it all. Not advisable however.
 
4
•••
If you are just selling domains then you are limiting yourself as far as profit is concerned. Most successful domain sellers diversify their online assets. Also, they have become naming professionals. Additionally, they have a high esteem of themselves as domain sellers, built a professional image and reputation, and have the best interests of the buyers in mind. Then the limit to what you can make only depends on your commitment to the business. There is no average.
 
4
•••
Enough to buy a whopper jr. Every Tuesday
 
4
•••
In my opinion, there is nothing to do in this business full-time. Will ask the question, how much per month will earn a player at the roulette table. Large domainer not rely only on random sale. This market is quite pathetic. And earn a piece (1000) of dollars it is good luck. Laughter. It is good for a hobby, to live on these "pennies" impossible. Large domainer turn their tens of thousands of domains, and there earnings is relatively large.
Your trying to sell isurances.insure on here for 750k. Its not the market thats pathetic.
You gotta put effort into this like anything else in life. Entering the game now is a lot more difficult than 10 years ago. Have to work harder, be smarter and watch out for thieves like Adam D.
Some new kids been on here year or two are kicking asš. Reason for that. Proper englis skills are way more impotent than money, then desire. Three kinds people in the world
1. Those that make things happen
2. Those that watch things happen
3. Those that wonder wtf happened
You can make money, up to you to finger out how much. Make it happen
 
4
•••
My characteristic of the market concerned the non-warranty of the result for absolutely number people when they wait swiftly result and ask business margin for every short period and in comparison with other Internet markets.

Huh?
 
4
•••
it depends how many domain you sell a month and if you have Quality Domains or just shit Domains.
* You can sell some domains this month and get between 1k - 10k , but after that you may not be successfully sell anything and wait a long time.
I hope you understand what I mean.
 
3
•••
I think experience counts for a lot in domaining. Much more so than digital marketing and other 'make money online' schemes Most won't make their first $X,XXX sale for several years, and then even longer for your first $XX,XXX.

As a benchmark I'm sure you will find dozens of people in the forums here that have had $100K+ years, and even fewer who can replicate that consistently.

If you can imagine that all the money that is going to be made in domaining this year is already accounted for, you can see that you have to buy domains from expiries/markets in order to make a profit. It's about taking market share off other big players because making money from new registrations is really a fraction of the market.
 
3
•••
I am looking to know numbers not logics!
you'd be better off getting a part - time job :xf.smile: at least that's guaranteed money .
 
3
•••
I am looking to know numbers not logics!
Successful people NEVER tell everyone how much $$ they make. That would be silly.
People tend to exaggerate things if they don't have a answer :guilty:
No one is exaggerating. These are true and correct answers. You want these people to nail Jello to the wall. It can't be done.
 
3
•••
It depends on your budget and skills. Anywhere between $0 and $1 billion.

Well I like the spirit of this, although with the total NameBio sales at $1.6 billion currently, I am thinking $1 billion might be a stretch, but I guess if you don't aim high :xf.grin:! Thanks for not messing around with any low goals @bgmugford and going right to the top!

ps I would like to correct the bottom of the range, which can easily be a negative number, not $0! That is important for those considering the business to keep in mind!

Have a nice day!
 
3
•••
While the question may seem straightforward, @Maxleron, there are no simple answers. As others have pointed out, it depends on skill, how much startup funding you have, how much energy and time you want to put into it, and I would add luck. Some manage to hand register a domain name and sell it for $$$$ right off, others slave away with equally good names waiting years for that first sale.

Here are a few numbers and thoughts....
  1. There are about 220 NameBio reported sales per day. We all know that there are many others, 5x that, 10x, some other factor.
  2. There are over a million people registered at NPs. By no means equally active. But you can see that most of us will not have NameBio reported sales very often.
  3. We all know the anecdotes of big sales, someone (put in your favourite big portfolio holder here) bought a domain a few years ago for $200 or $50 or even $12 and sold it for $20,000. But for every one of those there are many many more that will never sell and money is lost on. It is called survivorship bias in conventional investing, but people focus on the success and overlook the failed mutual funds / or domain investing names that never sold.
  4. On average, the entire domain investing community loses money. I am not at all saying everyone does, and I know some on here do very well, but on average, when people are really honest, I am totally convinced by the numbers that acquisition and holding costs exceed net returns. I am going to post the analysis, but not yet finished checking that.
  5. So to make any money you need to do significantly better than the average.
OK so you plan to be disciplined, hard working and much smarter than the average investor on here. How much might you make. I will do a calculation and you can insert your own numbers.

Example:
Let's say you have $25,000 to start with. You buy domains on average for $125 each (some more and some less). Your portfolio is then 200 names. It depends on how smart you are what the throughput is, but an optimistic number is 1 domain name in 100 will sell in a year so that you will have 2 sales in the year. Congrats! The average selling price on NameBio is $1377 as of today so far in 2018. But that figure is deceptive cause those big $100,000 sales that most of us will never see handled by the high roller types, and indeed some registries and brokers, account for a lot of the high end. So instead we should look at the median price. NameBio no longer display that in stats, but you can for a small set look at it easily. Yesterday for example (Aug 5) there were 177 sales so you scroll through to the 88 th one and it is $271. Now maybe you will occasionally have one off the bigger sales, so lets be optimistic and even though most of the time you will be selling for $271 lets say it is $500. So you take in 2x$500 or $1000. They cost you 2x$125 or $250, but you still have $750 profit, not bad, right? No. You have those 200 domain names costing about $9 per year to renew, so your annual costs are $1800. So you only lost $1050. Welcome to domain investing 101. Do some people beat the odds? Yes. But if you want a probable estimate you will lose money.

I know this example will bring on lots of contrary opinions, but I offer it based analysis I have done as I look at the industry as a whole. If you do good names in good extensions and happen to catch the beginning of a wave you can get lucky. Even then, lets say you have two $5000 sales (and many days no one in this one million person community sells at that price on NameBio). But if you sell 2 at $5000 you will gross $10,750 before the $1800 renewal costs, or $8950. Congrats. That is a fantastic 36% ROI over one year, but only a few on here will achieve that.
The one thing you left out Bob, is that your analysis doesn't count the time value involved. Your 36% ROI would imply it's a passive investment. Even a moderate 4 hours per day at a moderate value of $10 per hours results in $14,000 lost wages that could have been earned at a job. So even your best scenario results in a true loss when compared with working the same hours at a job.
 
3
•••
Here is something to ponder - oftentimes registry sales are reported to make it seem like investments in that extension are doing well. Such sales are generally of reserved domains that the typical investor does not have access to. Investors who incur acquisition and renewal costs do not benefit so an argument can be made that registry sales should be broken out separately.

Then we also have domain domain investor to investor sales. Yes, if I backorder a domain for $69 and later sell it for $750 to another investor, I have benefited personally. However, if five years from now that investor still has not managed to sell the domain, what does that say about the strength of the domain aftermarket? Without an end user entering the equation investors as a whole lost money. When I went back and looked at my historical sales over the last 12 years I found that fewer than 20% had any meaningful development. Many were still for sale or had been dropped because now they resolved to a Huge Domains page or they did not even resolve.
 
3
•••
My questions is not about me, I mean what high level domainers are making monthly as a full time working

Sorry but can't see anyone telling you what they make :xf.wink: personal for a start.

But like alcy said. All down to what you put in.
 
Last edited:
2
•••
  • The sidebar remains visible by scrolling at a speed relative to the page’s height.
Back