NameSilo

I have finally unlocked infinite markup (not kidding)

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

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561

  1. Ostrados

    Ostrados EpicName.com VIP Gold Account

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    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%
     
    Last edited: Jun 12, 2021
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  2. jhm

    jhm Glazed

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    Probably the most in-depth cost / consumption breakdown that I've seen on NamePros
     
    Last edited: Jun 12, 2021
  3. johnn

    johnn WeSellName.com PRO VIP ★★★★★★★★★★

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    You forgot the time that take you come up with this calculation: 3 hours.
    Get permission from your wife: 1 hour.
     
  4. iAdam

    iAdam iadam.com Gold Account ★★★★★★★★★★

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    And how much it cost you to come up with such thread? I think too much calculations is not alwayw good for business.
     
  5. HotKey

    HotKey Made in Canada VIP

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    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. redemo

    redemo Established Member

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    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.
     
  7. Ostrados

    Ostrados EpicName.com VIP Gold Account

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    This thread is just for fun not for business
     
  8. M Usman

    M Usman Established Member

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    Lolx, SH approval is not easy.
     
  9. FolioTeam

    FolioTeam AMDB.tv VIP

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    You didn't include the cost of your internet service
     
  10. Ostrados

    Ostrados EpicName.com VIP Gold Account

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    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
  11. Ostrados

    Ostrados EpicName.com VIP Gold Account

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    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.
     

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