How much money is needed to start a domain sales business

[DxDomain]

I am already registered some domain names but i am not know how much money need to invest in this field. Please share some thing about investment...

 

[DANEYAL]

Hello & welcome to domaining business.
The first few things I got to learn in this trade were,
1. Only buy a .com domain, make it a rule of thumb

2. Wait at least 2-3 months before buying your first domain for sale
Spend that time to study & read at least 20 posts daily on different forums.

3. Read all the sales posts, you will get used to the kind of names that sells.
4. Most of these selling domains you will see are "AGED" domains, means having at least 5 years.
5. Do not even think about Buying a .net .co & other tlds whatever parking or buying benefits you see. They are quite difficult to sell later.

6. Do not spend more than $100 before you make your first sale.
7. Yes, buying dropped domains is great idea as well.

8. Select any 5 platforms to sell, & 2-3 forums to study/sell(like namepros), keep them all with your one ID, it is advisable, makes things easy.

9. If you are aware about keywords, & keywords combination, then it is really nice, and if you are not start studying it.

10. At start most of us buy supposedly brandable domain ideas that in our own right seems to us brandable, but buyers do not really like these because they have their own branding ideas.

11. Stick maximum to 2 keywords domain, dont for 3,4 lengthy domain names, & try to see your domain name length has maximum up to 12 characters.

Good Luck

 

[discobull]

With that $100. Don't buy 50 domains with $1.99 coupons. Buy 1 domain in the domain aftermarket (say with a drop-catcher), and sell that for $500. Or maximum of 2 domains.

I'm not sure I can agree with this strategy. If he puts all his money into one domain and it doesn't sell, it means he's already out of business. Additionally, it might take years to sell that one domain which means that it could take forever to build up his portfolio. I'm also not crazy about the idea of spending $100 to make $500. It's normally not that hard to find $500 domains for a lot less. Also, with that kind of markup, it means that on an ongoing basis he'd have to convert 20% of his portfolio just to break even. Maybe that's possible with those sorts of margins ( I've never tried it ) but I've personally never managed anything remotely close to that rate. Are you typically able to sell 20% or more of your own holdings at a profit?

 

[Name Trader]

I was just using Dlev's figures as a starting point, remembering that the OP is a newbie. Not trying to give him some astronomical numbers that an experienced domainer might expect from a $100 purchase.

There are probably an infinite number of possible outcomes for the OP. But, it is my personal opinion that they would be better served, not buying 50 domains at $1.99 each. It is inevitable, buying that number of domains, that the concentration per domain (which is needed when buying domains) will not be the same as if they buy only a handful of domains. Also, there is a higher possibility that each $1.99 domain would be less valuable than 2 $50 domains. Of course you can always point to exceptions. Which shows what a crap-shoot domaining is.

I personally count myself lucky to turnover <5% of my domain holdings a year.

My opinion is the OP should buy quality over quantity. Now where quality lies is anybody's guess. The two ends of an infinite spectrum are somewhere between dfgghhj.com and mortgage.com

My strategy for the OP (and there are infinite possibilities), would be to buy a handful (1-5) of domains in the pre-release auctions of GoDaddy, NameJet, Snapnames. Then concentrate on selling them with the plan they have devised before they bought them. I think the OP could easily make between $500 to $2k. If he has bought good domains and executed his selling strategy well. And had his fair share of luck.

What would your plan/strategy be?

 

[baseballworld]

Only spend what you can afford to lose. Has worked well for me. Utilize godaddy codes as well.

 

[Name Trader]

TBH, I was expecting something a little less vague

 

[discobull]

I was just using Dlev's figures as a starting point, remembering that the OP is a newbie. Not trying to give him some astronomical numbers that an experienced domainer might expect from a $100 purchase.

There are probably an infinite number of possible outcomes for the OP. But, it is my personal opinion that they would be better served, not buying 50 domains at $1.99 each. It is inevitable, buying that number of domains, that the concentration per domain (which is needed when buying domains) will not be the same as if they buy only a handful of domains. Also, there is a higher possibility that each $1.99 domain would be less valuable than 2 $50 domains. Of course you can always point to exceptions. Which shows what a crap-shoot domaining is.

I personally count myself lucky to turnover <5% of my domain holdings a year.

My opinion is the OP should buy quality over quantity. Now where quality lies is anybody's guess. The two ends of an infinite spectrum are somewhere between dfgghhj.com and mortgage.com

My strategy for the OP (and there are infinite possibilities), would be to buy a handful (1-5) of domains in the pre-release auctions of GoDaddy, NameJet, Snapnames. Then concentrate on selling them with the plan they have devised before they bought them. I think the OP could easily make between $500 to $2k. If he has bought good domains and executed his selling strategy well. And had his fair share of luck.

What would your plan/strategy be?

I think it needs to be said that the probability is very low that a complete beginner would be able to successfully start a domaining business with just a $100. Beginners tend to make a lot of purchasing errors before finally getting a solid feel for what is or isn't worth buying and $100 doesn't leave a lot of room for error. That being said, if starting a business with $100 was the only available option, I would suggest picking up expiring domains at godaddy and dynadot and capping his purchases at $12-$14 each. It would take a good amount of daily work to find worthwhile domains at those prices but I think it's realistic to imagine that a couple of good domains per month could be found. That way his $100 could buy him 7 or 8 domains in total thereby increasing his odds of getting a sale. A side benefit would be that he'd be gaining experience by observing the market every day.

A better approach, however, might be to start off by trying to make money off of other people's money. I know from having sent out mailings in the past that there are bunches of domain holders out there that are eager to have someone market their domains for them. With that in mind, he could read up on how to find leads and send out mailings and then offer his services to existing domain owners. That way he could gain some experience without it costing him a dime and in the process he could potentially accumulate enough funds to invest in some domains of his own.

That's about all I can come up with for now...

 

[Name Trader]

I like your first approach. It is not dissimilar to mine. Going for the pre-release domains at GoDaddy and Dynadot. I agree that he should realistically limit himself to a couple of domains a month. That would take great discipline. It's very tempting to splurge everything in 1 month. I would add that he probably should not buy anything in the first month. Just learn the ropes before they plunge in.

There probably are domainers who would pay for these services. But I for one, wouldn't appreciate a newbie trying to sell my domains. So that might be fraught with difficulties.

 

[Kate]

...
Beginners tend to make a lot of purchasing errors before finally getting a solid feel for what is or isn't worth buying and $100 doesn't leave a lot of room for error.

That is, if they stick around and don't drop out of domaining after the first year
One thing you need before money: education. If you don't study the basics first (what domains to pick and NOT to pick) you will make bad investments.

 

[discobull]

If you don't study the basics first (what domains to pick and NOT to pick) you will make bad investments.

I've done a lot of studying, but I still make bad investments.

 

[DomainVP]

If you really want to get into this venture, take your time learning what makes a domain name good.

Eventually you will figure it out for yourself.

In the beginningStick to GoDaddy closeouts or hang reg drops that were missed, and move up from there.

Eventually, if you become skilled enough you will be able to find names for cheap that you can quickly sell for a significant ROI.

Be able to cover your annual renewals, and never spend more than what you are prepared to lose or hold for a long time.

Also, having an internet/coding and sales background comes in handy; brush up on your negotiating skills.

Good luck.

 

[NameOmnia]

what makes a domain name good.

We could open a thread long from here to the moon around this topic.
Unfortunately, imo, no one has yet fully understood what the secret sauce is.

 

[Mr.Natwarlal]

Basic rule of thumb: You're probably gonna lose everything in the first year or so.

By the grace of God I made $1200+ in my first year (2014).. with the capital around $100

How much money is needed to start a domain sales business

IMO..

Theoretical answer - $0.99 (you can start with one domain)

Practical answer - $50 to $100 (you can pick best available domains and start selling, don't buy at once.. If you are a newbie buy 2 or 4 or 6 each month)

 

[bmugford]

There is no easy answer to the OP's question.

Even quality domains can take a long time to find the right buyer. If you are making good decisions daily it can still take significant time and capital to reach a tipping point where you are profitable.

Theoretically you could buy one domain for $20 and sell it for several thousand, but the odds of that happening with one domain are remote. The odds climb as you add a quantity of quality domains.

Brad

 

[infosec3]

If you really have the ability to know which names are valuable and which are not, you may well start with $100 and multiply that many times... I lost money during 2009, when I started domaining, since I did not know what to buy. From then on, it has all been profit...

 

[anhnguyenict]

I invested about $1000 each year. This is the third year.

Waiting and waiting ...

 

[NameOmnia]

I invested about $1000 each year. This is the third year.

Waiting and waiting ...

Not one sale?
Then maybe you could consider changing your pricing plan or your buying strategy.

 

[allentrendin]

Minimum amount to be added is 499, and you can use this money later to sell domains , and hosting.

 

[Name Trader]

It's his buying strategy, almost certainly.

 

[JanuaryBabe]

The answer is simple. You can start domain sale business with $0.99 (Look for GoDaddy .com Coupon).

 

[domainhacks-931385]

It's his buying strategy, almost certainly.

Not necessarily.

You can buy excellent domains and list them for sale on multiple platforms and get no legitimate offers.