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How to be a good domainer ?

Labeled as strategy in Domain Beginners started by eDomain India, Feb 2, 2018.

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  1. eDomain India

    eDomain India Top Member VIP

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    Many of new domainers feel bad due to not getting single buyer for his/her domain. This thread is about domainers' strategies, tricks and planning.
    What is behind all succesful domainers ?
    If you want to share, you are welcome.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Mahouni

    Mahouni Established Member ★★★★★★★★★★

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    Keep grinding barely profit until you hit a lucky shot for a niche or demand stream that is not that saturated or talked about. Keep investing effort in that and finding new ones.

    Rinse and repeat. If these streams die, keep inventing / finding new ones.

    TL;DR there is no one "way"
     
  3. RobM

    RobM Established Member ★★★★★★★★★★

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    1) have an idea what you can do with a domain when you register it. If you think it has resale value think of your target buyers. If you think it can be developed and monetised know in what area and how you're going to go about it. If you cannot think of a reason *don't* register it. 'Brandable' is a meaningless term applied to domains with no meaning - these types of sales are incredibly rare.

    2) If you are selling via a forum don't quote estibot or any other appraisal tools as an indication of its value. A domain is worth what a buyer will spend and a seller will accept. Quoting values from useless tools suggests that you have no idea what it's worth to you and therefore are not worth dealing with as your expectations will be high and is also *totally* ignored by any potential buyer.

    3) You will get higher prices in an enduser sale. This seems pretty obvious but there are many people with freshly registered domains who attempt to sell on forums for enduser prices. You are better approaching potential buyers directly and individually. Although you are at a slight disadvantage as you have made the first move you will likely sell for higher than resell value - which is what forums are for. The rule for value is usually : enduser approaching you > you approaching enduser > forum. Of course forum is liquidity and you can quicker sell a domain.

    4) If you are selling a developed website bear in mind people will really only be interested in the traffic and revenue. Unless the domain is outstanding you should value the sale at a multiple of the revenue and any additional costs you have spent getting it succesful. Generic constant traffic commands a higher price than trends in quick moving markets.

    5) Understand what goes into a domain to give it value if it doesn't have immediate obvious resell advantages. The argument 'ebay have a made-up word and their domain is worth millions' doesn't cut it when you can take any made-up word, spend MILLIONS marketing it, and give it value if it provides a needed or wanted service. You likely haven't spent that on a fresh registration from two days ago.

    6) Constantly adapt and evolve. What worked a decade ago doesn't work anymore. What works last year most likely is not the best way to do things now. Keep abreast of the market and its movement.

    7) Stick to .coms or in some cases ccTlds (country codes relevant to the market). Yes there have been a couple of good sales in other extensions such as .top, .club, .banana etc but these are tiny compared to the amount of speculators. You have more chance of selling a worse .com than an excellent gtld.

    8) If nobody is approaching you for a domain you hold within a year it is a good indication that it's not as sought after as you wish to believe. Don't be afraid to let bad domains drop. There is no harm in trying and failing - most of your domains will fail it is normal. You want to hit on the good ones to cover the bad ones. As has been proven if people have deep enough pockets they can register a large portfolio with the knowledge that statistically some will sell and at least cover the renewal fees of the whole thing.

    9) Don't be afraid to spend money to make money. The days of fresh registrations immediately selling for lots of money have gone. Yes there are 'lottery' type sales now and then but you cannot base a serious business way of lifestyle on winning the lottery at some point. It is always worth buying domains with established routes to monetisation for a price you are comfortable with and the price a seller wants to sell for. Work out how much the domain will earn you or, if buying for resale, have a minimum level of profit you are willing to accept. If a resell domain is 'worth all of it's money' then beyond vanity you will not have much to work with. However as buyer and seller expectations often differ you can sometimes buy domains which you value higher than the seller does.

    10) Accept there is a standard 'market' value of certain types of domains. You may not have to agree with it but 3 letters, 4 letters (com) have a minimum 'token' price. You will always be guaranteed to get that price in a reseller market. Keep abreast of all domain sales and notice general market trends and standard values. Ignore some of the lottery wins you will see. I have bought and sold many 3 letter .coms in the past and simply trading on the profit in a reseller to approached enduser value makes up for not selling 'this-domain-is-the-greatest.com' when similar rubbish has sold once the month before for umpteen million dollars.

    11) Don't be buying at enduser prices to sell to resellers. This was always the problem with TV programs where people would buy something at market and then sell it at auction (I'm thinking of the antiques programme in UK :p). This is the *wrong* way round. Actually that might be a bad analogy but you get my meaning.

    12) Be honest in the reseller market. It is often noted when people try to sell a fresh registration for 6 figures and, when value is mentioned and that it is too high, claim they have already had offers for a naive figure. We know that isn't true - we are not silly. That just raises warning flags to serious buyers about dealing with you in the future. Also don't claim that you are selling domains because you don't have time to develop them and if they're not bought by xx date you will develop them yourself. Never indirectly threaten people who may be your customers especially when they can see through the bs they have seen so often. Reputation in the domain industry goes MUCH further than a few dollars. Similarly when asking for appraisals on a domain expect that opinions will differ. There is absolutely no point in getting upset on a valuation opinion. Remember opinions are free.
     
    Last edited: Feb 2, 2018
  4. RobM

    RobM Established Member ★★★★★★★★★★

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    13) Learn what 'premium' really means. A lot of domains are touted as 'premium' when they clearly aren't. This means either that the seller doesn't know that (and needs to learn more before he makes money) or does know and is trying to pull the wool over the eyes of the buyers who know better.

    I think that's it - I'm sure other people have things to add.
     
  5. HotKey

    HotKey Made in Canada VIP

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    Don't always let people tell you what to buy. No matter what the experience someone may have, you need to develop the grit for failure, and the appreciation for success. Find out for yourself the niches and domains that click with you, you might succeed where others have failed. Put yourself in the shoes of the buyer. "Is this a name I would seriously consider as the foundation for my business?"
     
  6. eDomain India

    eDomain India Top Member VIP

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    Question by a starter
    How to find buyer?
     
  7. stewmath

    stewmath Top Member VIP ★★★★★★★★★★

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    Also dont take estimation sites for gospel, for example estibot
     
  8. Tarabasa Domains Ltd

    Tarabasa Domains Ltd Established Member

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    Fail over and over 100 times, learn from the mistakes and keep going until you finally get it very right just that one time
    Then repeat :-,
     
  9. eDomain India

    eDomain India Top Member VIP

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    Sure, its create confusion in the mind of buyer and seller also.
     
  10. DomainVP

    DomainVP Domain Expert VIP

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    While you start out teach yourself sales strategies, negotiation psychology, branding & color theory, and business psychology.

    Selling domains has sharpened all of these aforementioned skills for me; at this point I could sell ice to the inuits (eskimos). I can approach most marketing divisions, ask for $3k-$4k for a domain I paid $30 for and I will get it. I can also talk someone down from that lofty $10k price to something anyone could afford.

    I'm not blowing my own horn, I'm telling you how learning these skills will pay off for any domainer. The information is out there, you just have to reach out and GRAB IT!

    Above all else, these skills will help you the most in domaining.

    Best of luck to you.
     
  11. Haykay2005

    Haykay2005 Top Member VIP

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    Nice one
     
  12. Dave

    Dave Top Member VIP ★★★★★★★★★★

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    @RobM Great post. For those who don't know Rob, I would take note of what he has posted above. He is a very experienced domain investor.
     
  13. Mahouni

    Mahouni Established Member ★★★★★★★★★★

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    Thanks for contributing to the thread. Could you please list resources/books that were MOST influential for you for developing those skills.
     
  14. brandboss

    brandboss Restricted

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    Yes agree..
     
  15. Kate

    Kate Domainosaurus Rex VIP ★★★★★★★★★★

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    I will keep it short so:
    • do research
    • look at what is selling, don't try to reinvent the wheel or invest in niches in which there is no demand
    • don't buy names just because you like them, put yourself in the shoes of an end user
    • quality > quantity
    • keep track of expenses and revenue, have basic accounting to track progress (or the lack thereof)
    • maintain some liquidity in your portfolio: that means names like LLL.com that can redeemed for cash in a short amount of time, should you be faced with a financial emergency. It happens to all of us. Or you might want to raise money for a domain purchase. A good opportunity may be available for a short time ie a prerelease auction.
    • have realistic expectations, be willing to be dedicated and spend a lot of time on it, if you treat it like a pastime then you shouldn't expect a comfortable salary
    • don't be in a hurry to spend money, it's never too late to start domaining
     
  16. bobbarato

    bobbarato Established Member ★★★★★★★★★★

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    Be without fear in the face of renewal fees.
    Be brave and upright, that NamePros may love thee.
    Speak the truth always, even if it leads to no sale.
    Safeguard the noobs and do no wrong; that is your oath.
    <slap>
    And that is so you remember it.
    Rise a domainer... rise a domainer!
     
  17. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    [QUOTE="RobM, post: 6552858, member: 24362" don't quote estibot or any other appraisal tools as an indication of its value. A domain is worth what a buyer will spend and a seller will accept. Quoting values from useless tools suggests that you have no idea what it's worth to you"
    [/QUOTE]

    I agree with almost all of your advice in the excellent posting @RobM but not necessarily the part I quote above. I think it is unfair to refer to Estibot as useless. I have elsewhere criticized some of the limitations and biases of both Estibot and GoValue, but would not call either useless. As others have posted elsewhere on NPs, a customer will want a domain for valid reasons, but the GoValue or Estibot will help convince them that a third party considers the price valid. By posting an Estibot or GoValue estimate of worth you are not in my opinion saying you have no idea what it's worth. Anyway thanks for an overall great post that has lots of good advice, even if I take exception to this part.
     
  18. RobM

    RobM Established Member ★★★★★★★★★★

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    I have never known anyone sell a domain or buy a domain based on an automated appraisal. Given that I could just put two words together in an extension nobody uses and get a 3 figure appraisal from estibot I wouldn't put much faith in that 'third party'. When I buy a domain I figure out what I'm prepared to pay based on evidence - not on 'belief' in a fallible tool that can't possibly factor in everything that gives a domain value. Some things just can't be automated. The only people who appraisal tools have helped to get rich in the past are the people who designed the appraisal tools. Same as those who sell 'certificates' etc. A serious buyer is never going to be persuaded of a domain's value by these tools. The best case they are ignored. The worst case the seller is ignored. That is why they always usually give silly high appraisals - it is to make the sellers feel good and to come back for more. However each to their own. I tend to see that people who quote estibot values only do so for a domain with no earnings or meaningless in an attempt to justify an asking price. I'm sure I'm not alone in dismissing these people immediately as not having anything of worth. I don't mean to sound 'snobby' - that's just how it is.
     
    Last edited: Feb 2, 2018
  19. bobbarato

    bobbarato Established Member ★★★★★★★★★★

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    I would never cite an estibot or govalue figure to resellers or experienced endusers. I would use them for internal eval/laughs.
     
  20. Tshombe

    Tshombe Established Member

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    This is a "Premium" thread! Thanks for the insight folks.
     
  21. Fancy.domains

    Fancy.domains Selling gTLDs like delicious hotcakes Gold Account VIP

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    1. Learn what a good domain name is (based on data, previous sales and experience etc.)

    2. Search, search and search for good domains to buy everywhere. Do not waste your time on crap names, just because they are cheap.
     
  22. eDomain India

    eDomain India Top Member VIP

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    Where to sell domains ?
    Which plateforms provide DN sale service?
     
  23. tiawalling

    tiawalling Established Member

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    Best advice I have read in a while....newbies and veterans alike will profit from such elaborate and detailed advice.
     
  24. DonDraper

    DonDraper Top Member VIP

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    Like Everyone says "Dont use Estibot like Gospel" but I would add try to figure out why an estimate is $50-$250-$500
    Use the estibot just like a sort of "fallible North Star" to find the "place" you want to bet on.
     
  25. RobM

    RobM Established Member ★★★★★★★★★★

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    Or roll a random number. Chance is correct as often as estibot ;)
     

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