# I have finally unlocked infinite markup (not kidding)

Labeled as discuss in Domain Selling and Domain Sales, started by Ostrados, Jun 12, 2021

Replies:
10
Views:
561

Posts:
5,883
2,877
Few days ago I sold a domain that achieved infinite markup and 100% profit margin

How?

Simple, the domain was SquadHelp owned domain that they registered not me, and they paid the renewals, then I sold it to someone else for \$12.

Cost = \$0
Selling price = \$12
Markup = (\$12 - 0) / 0 = infinity

However:

Infinite markup is impossible and can't be real, in reality there was an embedded cost even if I didn't pay anything for domain my self. Here is how:

- Lets say it took me 10 minutes to came up with the name

- Lets put the value of my time aside (considering that it was during my free time)

- That 10 minutes of work that included brainstorming and using my laptop costed me:
1. Electricity consumed by my laptop
2. Energy consumed by my brain and body

#1 is straight forward:
Cost of 10 minutes of electricity in my house = \$0.028
Lets say my laptop consumes 5% of my house electricity => \$0.0014

#2 is very hard to calculate, but if we consider that on average a person consumes 2500 calories per day,
then:
10 minutes costs about 17 calories.
100 grams of wheat flour gives 364 calories => 5 grams of flour gives 17 calories
The price of 1kg of flour is \$1 => cost of 5 grams of flour is \$0.005

=> Energy consumed in 10 minutes = 17 calories = \$0.005

Total cost = \$0.0014 (electricity) + \$0.005 (food) = \$0.0064

Actual Markup = \$12 - \$0.0064 / \$0.0064 = 1874
Markup Percentage = 187400%

Last edited: Jun 12, 2021
The views expressed on this page by users and staff are their own, not those of NamePros.
2. ### jhmGlazed

Posts:
2,377
3,120
Probably the most in-depth cost / consumption breakdown that I've seen on NamePros

Last edited: Jun 12, 2021
| | |
3. ### johnnWeSellName.comPROVIP★★★★★★★★★★

Posts:
17,422
7,463
You forgot the time that take you come up with this calculation: 3 hours.
Get permission from your wife: 1 hour.

| |

Posts:
603
1,281
And how much it cost you to come up with such thread? I think too much calculations is not alwayw good for business.

Posts:
3,296
8,397
Very good, lol. There is a third cost though:

3. Assuming you pay for an internet connection, what it took from the total monthly service fee. Even with unlimited bandwidth and a straight fee, the sale still consumed a portion of the connection. :p

Laptop estimate of 5% of house electricity.. dang that sounds like a ginormous machine. What is it a Pentium 3 ThinkPad?

| |
6. ### redemoEstablished Member

Posts:
727
1,366
The only way to GUARANTEE consistently making profit from domain names is to buy traffic names in a profitable niche and display ads. If you have traffic in a profitable niche your ads WILL get clicked on and you WILL make profit. ON a \$ 10 registration you only need to earn 3 cents daily from ad clicks to make a profit. That's just from parking. Next you can try producing actual CONTENT and watch your ad clicks multiple 10-fold in value. There is no other way to GUARANTEE a profit in domaining. Prove me wrong.

Posts:
5,883
2,877

8. ### M UsmanEstablished Member

Posts:
121
114
Lolx, SH approval is not easy.

9. ### FolioTeamAMDB.tvVIP

Posts:
1,947
5,321
You didn't include the cost of your internet service

Posts:
5,883
2,877
Because in my case I have free internet in the building where I live.

But even for paid internet most ISPs nowadays provide unlimited bandwidth so there is no extra cost to be calculated.

Last edited: Jun 13, 2021

Posts:
5,883