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discuss I have finally unlocked infinite markup (not kidding)

NameSilo

Ostrados

EpicName.comTop Contributor
Impact
3,185
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


:xf.grin:

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%
 
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jhm

Top Contributor
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Probably the most in-depth cost / consumption breakdown that I've seen on NamePros
 
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johnn

WeSellName.comTop Contributor
Impact
9,596
You forgot the time that take you come up with this calculation: 3 hours.
Get permission from your wife: 1 hour.
 

iAdam

iadam.comTop Contributor
Impact
1,700
And how much it cost you to come up with such thread? I think too much calculations is not alwayw good for business.
 

HotKey

Made in CanadaTop Contributor
Impact
10,459
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?
 

redemo

Mug RuithTop Contributor
Impact
2,447
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.
 

Ostrados

EpicName.comTop Contributor
Impact
3,185
And how much it cost you to come up with such thread? I think too much calculations is not alwayw good for business.

This thread is just for fun not for business
 

FolioTeam

Brandsq.comTop Contributor
Impact
6,831
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


:xf.grin:

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%
You didn't include the cost of your internet service
 

Ostrados

EpicName.comTop Contributor
Impact
3,185
You didn't include the cost of your internet service

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.
 
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Ostrados

EpicName.comTop Contributor
Impact
3,185
Laptop estimate of 5% of house electricity.. dang that sounds like a ginormous machine. What is it a Pentium 3 ThinkPad?

My calcs are not perfect for sure, my 5% estimation is not because my laptop consumes a lot of power, but because that there are no heavy electrical usage by other devices in the house, most of the time it is only the fridge + few lamps + TV that are running.