NameSilo

I'd like to share some advice with you all

Labeled as advice in General Domain Discussion, started by Dave, Jun 5, 2017

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  1. Dave

    Dave Top Contributor VIP ★★★★★★★★★★

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    Introduction
    I am writing this post to share my experience, opinions and tips with you all. Please don't consider anything written in this post as investment advice. This is all personal opinion, so take from it what you will.

    When investing in domains, please remember...
    Domaining is a business so make sure you treat it like one. The purpose of a business is not to buy lottery tickets and hope to win, the purpose is to make decisions and take calculated risks with the target of making a profit. And just like any business don't just sit back and expect money to roll in without putting in the work to achieve necessary results. If you're looking for a quick rags to riches story then you will most likely be sorely disappointed.

    What makes a domain name valuable?
    First, let us determine what valuable means. Is it $100 when you paid $8? Or does it have to be $1000? Maybe $10,000? The answer is no to all 3. A domain name is valuable when it has demand, and when it has a likelihood of selling for more than the costs of acquiring and renewing said domain over x amount of years. That is it. If you remember this one simple thing it will help you price your domains more realistically rather than treating them as lottery tickets that rarely come in.

    Moving on... Valuable domains are ones in well known TLD's (.com, cctlds usually), where its keywords clearly describe a product or service with commercial viability, or when said domain is a well known phrase or generic that is applicable to one or more niches.

    Brandables can also be thrown into the mix but these require an amalgamation of well known keywords to work properly.

    Keywords really should be in a language that is applicable to that TLD, .com is universal so any language is fine, .de is Germany so preferably German, for example.

    Allow me to use some examples to portray what I mean:
    • Whenever you pay for something online, there are a few valuable domains there (Pay.com, Payments.com, PayOnline.com)
    • When you search for a local plumber (MyCityPlumber.com)
    • When your car breaks down (CarRepairs.com)
    • When you order a takeout and the delivery driver arrives with your pizza. (PizzaDelivery.com).
    • When you eat a banana, that banana itself is a valuable domain because it is a very well known piece of fruit (Banana.com)
    • After you have paid for something online and are awaiting delivery (Delivery.com)
    • When you're outside and you look up (Sky.com, Blue.com, Cloud.com)
    • When you are looking for a property to buy in your city (MyCityProperty.com)
    • and so on and so forth.. I'm sure you get the picture
    Completely made up brandables are not valuable on their own, these are lottery tickets. I admit I have a couple myself, no harm in that, but for people basing their whole portfolio around completely made up words please don't be surprised to find yourself in the red before long unless you somehow get extremely lucky.

    One more thing, the demand part is very important and determines the risk factor. If the keywords of your domain describe a niche or a subset of that niche whereby there are a multitude of end users then I deem it a low risk domain (so one with a higher chance of selling), if there is only 1 or 2 end users then to me it is a high risk domain because if they don't want it then you'll be holding an asset for an unknown amount of time until that niche sees growth with more end users. Really consider this before buying a domain name.

    But wait, all those type of domains are long taken, how can I ever hope to compete?
    Two key things are required to compete, research and negotiation skills.

    Let me assure you that not every good domain name there will ever be has been registered yet. There are always new trends appearing. 7 years ago any domain with Bitcoin in it would have been almost worthless, now Bitcoin.com would be a million dollar domain on its own. This has always been the case, trends come and go so look for the ones that will stay around for some time and be the first to act. I recommend spending at least 1 hour of your day subscribing to and reading blogs related to all manner of niches, be it tech, crypto, cars, fitness or what have you.

    There are still opportunities amongst the expired lists and deleting domains too, so research, research and research. Make use of tools like expireddomains.net to help you. I admit, 2017 is probably the toughest year for finding worthwhile domains on the expired list, but the opportunities are there if you look hard enough.

    Why do you need negotiation skills? Because there are still opportunities out there to buy existing domains for cheap for many reasons;
    • The owner requires cash flow for a new project
    • The owner is retiring
    • A company has gone into liquidation
    Take advantage of the above situations and negotiate a price below market value. Use sales tools to determine market value for your keywords.

    Where do I get ideas for a valuable domain name?
    As you can see from the examples above, there are opportunities all around us. Pay attention to what is happening in your everyday life and deem the popularity of it. Make sure you get out the house everyday for a walk, you maybe surprised what ideas will spring to mind from doing something so seemingly simple.

    I have found and purchased a valuable domain, now how do I sell it!?
    Woah, slow down there buddy. First things first, don't rush. Domaining is a business that allows breathing space before making such a decision. Have a sip of water and take a moment to appreciate the domain name.

    So now you're looking for an end user to sell to? First of all you need to decide one of two approaches to take, passive or proactive. Passive means making use of a parked 'for sale' page whereby you give a price or a 'make offer'. Proactive means you actively contact and seek out end users. Remember the advantage and disadvantage of both. Passive will usually result in a higher sale price but a lower chance of selling whereas proactive will usually result in a lower sale price but higher chance of selling. This is because with passive the end user has contacted you for the domain, so you hold all the cards, whereas it is the opposite for the proactive outbound approach.

    Ok.. so how do I sell proactively?
    The most important thing to remember with outbound sales is to treat each end user individually and personalise your communications. This is so important. Bland, generic email templates for example are less likely to have an impact on your point of contact. In my opinion, too many domainers make the mistake of mass emailing multiple end users at a time with the same boring generic template.

    Why should you personalise for each end user? Because you want to show that you understand what it is you're selling and who you're selling to. If it is a keyword rich domain then describe to them how owning this domain name will improve their business, after all that is the only reason they will want to buy it. Show that you have done your research on their business. Include search volume of the keywords, include any type-in traffic it receives and how it will have an impact on their sales and business. Remember some end users will already be long established and have a ranking on Google, so you really need to convince them that why this domain name will yield better results, is it the memorability? Has it more marketing power for use on business cards, billboards, tv commercials? And so on and so forth.

    How big should my portfolio be and how many domains should I buy?
    Again, I am not here to give investment advice. You need to find what size you feel comfortable with and keep a steady growth. As with any business don't let it overwhelm you and don't go in head first, the most important thing is always being comfortable and happy.

    Finally, only spend what you can afford! Please!

    If you got this far..
    Well thanks for reading I guess. I just wanted to give back to this community that has given me so much over the years.

    Feel free to ask me any questions and hit me with all you got.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. MapleDots

    MapleDots Top Contributor VIP

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    Hence all versions of Covfefe are now registered.

    A little while ago there was no such word. Kudos to the guy that thought of registering it first.

    As @Dave said.... look for the trends....
     
  3. Marc Riccio

    Marc Riccio Established Member

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    Am new at this, but I have read tons of forums, memos, websites...anything to do with Domaining. That being said, I see everyone wants the big hit. And it rarely happens.

    As this is a hobby for me ( better than Soduko ), my goals will be different from the majority of Domainers. If I buy a name, send out well written offer letters to my targeted customers and follow the Rule of 10, ( send 10 emails, get 3 responses, close 1 sale ), and keep my price structure low, I should be able to get a 30% return on investment. I get a paltry 1 1/2 at the bank...

    Been in Sales all my life, and at one point I had a National Sales team of 68 sales reps. My target group will be Bloggers in my niche, as they all use 3 or 4 word phrases. Also, local small businesses.

    The endeavor starts on June 15...

    M
     
  4. Marc Riccio

    Marc Riccio Established Member

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    2 Canadian posts back to back..... waiting for the hockey game to start...
     
  5. WhoaDomain.com

    WhoaDomain.com WhoaDomain.com VIP Gold Account

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    I had a handreg domain. That got an offer for $5k. Person reached out to me. I thought I'd be slick and ask for $10k and have them negotiate to $7k or $8k.

    Never went that far. They just disappeared.

    Moral?

    Never get greedy.

    Had a VR domain. Got a bite on it from a very popular adult site.

    They Asked for price. I asked $95k because of comps.

    Potential buyer tells me they found another option.

    Said my domain he would have gone $10-$15k as that's what he thought it was worth and could probably still get for it.

    If I had just priced it around there he would have made a deal.

    Moral?

    Don't be greedy.

    I have an Arabic domain spelled using Western characters . It's arabic for "Buy" GoDaddy broker reached out for client. Don't know who it is. So started with $25k probably still wishful thinking. But at least it's not $100k.

    Probably should have said $10k but it is the word BUY so went with $25k.

    Plus I heard potential arabic buyers don't understand the value of domains for their website and would rather go with a two word domain that's free to reg.

    We'll see. Hope they don't disappear on me.



    I'm slowly learning that the "sweet spot" for most domains hand reg will be around $1000-$3500 since that seems. To be what hugedomains and buydomains lists their's.

    Whatever your keywords. It's best to check out buydomains and hugedomains to see what they priced theirs. Although most of theirs are aged. So the price merits it.


    All in all great post. Very realistic and everyone should take it seriously.
     
  6. Dave

    Dave Top Contributor VIP ★★★★★★★★★★

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    Fantastic points. I should've really mentioned more about realistic pricing. You've summed it up and well though so I hope others read this. Nice that you're finding that 'sweet spot'. I will go back later and improve the original post with another section on 'how should I price my domain?'.
     
    Last edited: Jun 5, 2017
  7. WhoaDomain.com

    WhoaDomain.com WhoaDomain.com VIP Gold Account

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    To be honest. I plan to liquidate soon and now plan to realistically sell most in the $500-$$1000 range. I use to think lottery tickets but with the huge inventory. Even at $500 each or even $250 each. It's at least a guaranteed lotto ticket. Lol

    Not showing off. Just being realistic.

    Some I will hold on to for bigger paycheck like
    Primorsky
    BTCVegas
    VegasBTC
    and 885888.net
    The rest are all going to my thread in my signature.

    I've been in the red for a bit renewals are as inevitable as death.

    Most of my liquidation is going straight to NJ.

    I'm babbling again lol sorry. Thanks for the reality check. Some on here need some.
     
  8. alcy

    alcy Top Contributor VIP

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    hence its always good to get them to make offer on say gd auctions.. well worth the 20% fee. hassle free transfers.. guaranteed funds... plus a binding offer (or as binding as they come) or else the buyer gets banned.. so most do not want to get banned and complete sales.. we recently had it confirmed on another thread that only a tiny 1% or so of buyers end up not paying... (thanks @Joe Styler).

    otherwise you are stuck with some parking page lander inquiry or other.. where they can give any price.. negotiate for days.. then buyer just disappear in the end.. and you can do nothing at all.

    this is why I gladly pay the 20% to gd.. for most of my sales. for the binding offer, the smooth payouts, and professional handling of the whole thing from the auctions team. had couple non paying buyers.. so for me to added up to maybe 20% non paying bidders. but I have full confidence in what Joe says.. and that overall the number is around 1%. my personal stats or some other guys, are not the whole picture.

    either way, try to redirect all your landers to gd auctions if yuo feel what I say reasonates with you. in the end, it'll help you save deals. so the 20% in fees you pay will still bring you more roi even after fee... than all the lost deals otherwise/elsewhere.

    just closed a 1.5k recent reg .org sale on gd auction.. pretty content with that one... took some negotiating.. god only knows where it'd all end up without gd official negos.. and just some emails back and forth.. buyer paid it rigth away too :) on the other hand, I already must have had a good 20 offers/inquiries via parked page lander that went to nowhere. it stinks.

    cheers
     
    Last edited: Jun 5, 2017
  9. alcy

    alcy Top Contributor VIP

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    sorry but NJ is something I've yet to fully explore.. I tought you needed preapprovals for NJ auctions or can anyone send any domains they want to there?
     
  10. WhoaDomain.com

    WhoaDomain.com WhoaDomain.com VIP Gold Account

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    Well Alcy. I'm sure you like most friends on np we've all "checked out" each other's inventory via whoisology

    Y'all know how many I have. Lol

    So NJ was more than glad to have me on board.

    Never seen
    such quick response from Marketplace! Lol
     
  11. alcy

    alcy Top Contributor VIP

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    mmm so its also numbers game at NJ.. I see. Im gonna look into this.. didn't even get round to making account there..

    so you just emailed them your whole list and go from there. nice. ty for info. will check.
     
  12. Nazz

    Nazz Top Member PRO VIP

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    Great post, thanks.

    Must read for all, especially the new comers.
     
  13. NameVP

    NameVP Established Member

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    Good post!
     
  14. 1Darko

    1Darko Top Contributor VIP

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    That's very optimistic. From my experience you need approx.100 very good leads to score 1 sale!
     
  15. Marc Riccio

    Marc Riccio Established Member

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    Time will tell. A well crafted letter, addressed to the right person will work. It's all in the research.
     
  16. BrandSac

    BrandSac Established Member

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    thank you for sharing this great tips with us :)
     
  17. Siz27

    Siz27 Established Member

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    As long as I've been in sales, the "Rule of 10" has always been: Get 10 Leads, Talk to 1 person. Talk to 10 people, close 1 deal. So in turn it's every 100 leads = 1 sale. I've never heard it referred to as 10 calls = 3 leads = 1 sale. Though, I could just be wrong about it and whoever told me it originally was talking out of thin air lol.
     
  18. Dave

    Dave Top Contributor VIP ★★★★★★★★★★

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    Did you know that 82.5% of all statistics are made up on the spot?
     
    Last edited: Jun 6, 2017
  19. Siz27

    Siz27 Established Member

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    Well ya, however 98.37% of all statistics not made up on the spot are disproved within 10 years of being "proven".
     
  20. MapleDots

    MapleDots Top Contributor VIP

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    HeHe

    Including that one? (n)
     
  21. Marc Riccio

    Marc Riccio Established Member

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    The way it was in the Insurance biz was as follows... Make 10 phone contacts, get 3 expirations. Prepare your next call a month before the expiration date and send a quote by mail. Follow up a week later by phone. This will result in one sales appointment. Closing rate was at 90%.

    My first 3 months I got 2000 x dates and had a sales result of 212 policies...
     
  22. Marc Riccio

    Marc Riccio Established Member

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    Did you know that 98.6% of short putts do not go in the hole
     
  23. Siz27

    Siz27 Established Member

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    "WHY WONT YOU GO HOME BALL? ARE YOU TOO GOOD FOR YOUR HOME?!?"
     
  24. Dave

    Dave Top Contributor VIP ★★★★★★★★★★

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    I can't edit my post now. I want to also add the following tip when considering purchasing a domain or not:

    Say the keywords out loud over and over. Does it sound like something you would want to buy? Does it sound like a service you personally would want to use? Does it sound like something you would name your own company or website? Really give this some thought.

    Ask a family member, friend or even your dog what they think. Really put yourself into the shoes of a possible end user and ask yourself those questions. Sometimes, even if a domain looks good and reads well, it may not sound good or be applicable.

    Happy domaining folks! :)
     
  25. Sanwal

    Sanwal Sanwal Memon VIP

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    I've dealt with Dave before and he knows exactly what he is doing. Some amazing tips here that should help even the most "Pro Domainers."

    Thanks for the post Dave!
     

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