I'm Brad Mugford, owner of DataCube.com. AMA

[bmugford]

I registered my first domain in the late 1990's, but have been an active domain investor for 15+ years now.

I am going to call this an Ask Me (Almost) Anything.
There might be some questions I am unwilling or unable to answer.

I would prefer to keep the questions related to domain investment, or business in general.

Feel free to ask general questions, or specific questions for instance regarding an appraisal of your domain.

About:
Twitter - https://twitter.com/datacubecom (I have not really used Twitter much, but plan to start using it more.)
LinkedIn - https://www.linkedin.com/in/bradmugford/

I am not sure how long I am going to leave this thread open. Let's see how it goes.

Brad

 

[Digital Nomad]

You basically need to have domains that already have obvious end users.
GEO domains are a natural place to start, but as I said earlier it is a real crap shoot.

You might be able to sell a domain for $250 - $1,000 but then not be able to sell 100 other domains at all.

Brad

Yes it's very time consuming. Better to have a big portfolio with quality names and place them for sale on all platforms possible and wait for an enduser to come to us.

 

[bmugford]

Hi, Brad, thank you so much for sharing your knowledge and insights!

Let's say you're starting from scratch today but you are equipped with the domaining knowledge you've accumulated over the past decades.

You have $500 to invest (in domains/domaining).

1) Please outline your strategy, how would you use your $500?

2) Obviously there are no guarantees in domaining and $500 is not a lot of money. This will probably sound silly but I'm just curious, how do you estimate your chances of being able to actually build a sustainable income source from the initial $500?

Thank you!

Well, everyone starts somewhere. $500 is not an insignificant amount of money.
It can get you some decent domains.

It helps to have a larger budget, or I should say it CAN help.
If you are making bad decisions, a larger budget is just a shortcut to losing more money.

I think the key on a limited budget is to not waste money.

The best sources of domains are probably venues like GoDaddy closeouts, NamePros marketplace, and hand registrations. It is probably going to be hard to compete on expired auctions without a larger budget.

I would probably stick to domains in a $25 - $100 price range, let's say $50 on average.
Now these domains are not likely to have massive pools of end users, but they would be sellable domains.

You basically need to get that first sale, and with standard STR and that budget it can be tough.

Outside just waiting around, you have to figure out a way to hustle and make it happen.
This could be on NamePros, social media, proactively reaching out to potential end users, etc.

Brad

 

[GeorgeK]

Great thread!

Question: What percentage of your sales proceeds do you invest in non-domain name activities? (i.e. for diversification) What kinds of investments are they? (e.g. stocks, bonds, real estate, or something else entirely...)

 

[strong]

Hey Brad.
Long time.
Do you have 1 domain story that keeps you up at night ? Maybe the one you most regret not buying because you thought it was too much money or you missed at an auction because the auction went on for 8 hours?

You've been doing this a long time. What's domainer retirement look like to you ?

 

[jhm]

Think we owe Brad a pint answering all these questions

 

[bmugford]

What books and online resources have you found of great importance during your journey?

Thank you so much for this AMA.

I have not really read any books specifically on domains, but here are some books I like in various categories.

Business -

The Lean Startup
https://www.amazon.com/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898

Influence: The Psychology of Persuasion
https://www.amazon.com/Influence-New-Expanded-Psychology-Persuasion/dp/B08RLT11Q3/


General -

The Subtle Art of Not Giving a F*ck
https://www.amazon.com/gp/product/0062457713/

Think Again: The Power of Knowing What You Don't Know
https://www.amazon.com/gp/product/1984878107/


Non-fiction -

The Selfish Gene
https://www.amazon.com/gp/product/0198788606/


Novels -

Slaughterhouse-Five
https://www.amazon.com/gp/product/0385333846/

Stranger in a Strange Land
https://www.amazon.com/Stranger-Strange-Land-Robert-Heinlein/dp/198480278X

The Hitchhiker's Guide to the Galaxy
https://www.amazon.com/Hitchhikers-Guide-Galaxy-Douglas-Adams/dp/0345418913/

 

[Kenny]

Hi Brad,

First off, this is a remarkable thread and should be bookmarked by Pros and n00bs alike.

You have answered every question graciously, and with patience, even those previously answered.

You have shared some of the most inside information of your outstanding career without hesitation and with full candor, and I for one appreciate your "letting the foxes into the henhouse" of your most successful methods.
(have I got enough brown on my nose yet)

You have stated your hobbies, card collecting, etc.
My only question is what else do you do with your free time?
Outdoor activities and such. Fishing? Traveling? Anything outside the 'puter world.

Thanks again, my brother.
You are and always have been an amazing human.

Peace,
Kenny

 

[bmugford]

Brad, Hello

What is the best way to connect a Domain name with the right person, other than on Go Daddy Auctions ??

Others might have a different model, but for me it is kind of a waiting game.

I would equate it to fishing. If you have enough hooks (domains) in the water, in a good location (domain quality) you will get some bites. Most of those bites still won't convert into sales but the ones that do make it worthwhile.

There are other business models that are far more proactive than mine.

I tend to spend more time on the acquisition side as I enjoy the hunt.

Brad

 

[NameInbox]

 

[Armageddon]

This tread should be interesting

 

[Recons.Com]

Thank you for being open to the Q&A.

You are one of those people that I find myself agreeing on pretty much everything.

Question:

Do you find that having your own portfolio site helps you with your sales? How do people discover the site?

 

[bmugford]

I totally agree. Thought maybe it might be related in some odd way to Epik. I am hoping to start my own AMA. Just trying to figure out how that works.

I should give @twiki credit. It was that AMA from a few months ago that even gave me the idea to do it.

Brad

 

[bmugford]

Let's say there is a two-word brandable .com domain name which might sell for $10,000 to end-users (let's assume you have manually appraised this domain).

In this case what is the maximum amount you would pay for this domain in wholesale price?

Same question:

Let's say there is a two-word brandable .com domain name which might sell for $20,000 to end-users (let's assume you have manually appraised this domain).

In this case what is the maximum amount you would pay for this domain in wholesale price?

Day 2. Here we go.

Well, a lot of domains might sell for $10,000 or $20,000. I try to figure out the likelihood of that happening.
This is really just an educated guess based on my experience in the field.

I will also factor in the reseller value. It is not just about upside, it is also about lack of downside.

If I can pay $1000 - $2000 for a domain, knowing that I can always sell it around the same price that really limits the risk. The more liquid a domain is, the higher ratio I will pay.

If you give me more precise examples, I don't mind letting you know what type of price range I would pay for them.

Brad

 

[NicTraders]

I primarily use GoDaddy, but because I mainly make one-off end user sales.

Everyone has heard of GoDaddy, and most already have accounts there.

I have found it adds less friction to deals than maybe using a lesser known registrar.

Dynadot is probably the best all-around registrar in my view. I have used them for over a decade.

I have nothing but positive things to say. They are just solid at everything, especially when it comes to pricing and support.

Those are the primary (2) registrars that I use, but I have had positive experiences with others like PorkBun, NameSilo, etc.

Brad

What about Epik, Brad?...

 

[bmugford]

* How you make a balance between online activities and practical life responsibilities.

I dedicated a lot of time in the past but it is not quite as demanding today.

I probably only spend a few hours a day on actual domain "work".

I generally just focus on the buy side and scan lists and look for other opportunities.

When it comes to sales, I am relatively passive. I just deal with offers as they come in.

* I have heard no of times in this form that when you buy domain go with your 'Gut Feelings'. What is this according to you and are you using it in decision making for buying domains.

This is something you learn over time with experience.

Almost everyone knows what a great domain is and what a terrible domain is. The difference is finding quality ones in between, that are likely to get interest.

This could be based on the length, format, brand, field, comp sales, and many other factors.

Also, sometimes gut feelings are wrong.

* I people is getting no domain sale what you will suggest in this situation.

Tough question.

You could have quality domains and no sales, because of lack of quantity.

You could have quantity of domains and no sales, because of lack of quality.

It is hard to even get to a proof of concept without both.

I generally care more about inquiries and offers than sales. If you get those, sales will happen.

If you have a sufficient quantity of domains, and are getting no interest, it might be time to re-evaluate your portfolio.

Brad

 

[Sutruk]

Hi @bmugford . I was going to ask you a few questions but I see that other NP members have already asked you.
So I just want to thank you for your posts and contributions in this forum. You are quite a valuable member here, that's for sure. Always keeping your style and good manners.
And as some members have already said, I also quite agree with almost every of your posts and views here, about domains and about "other discussions and categories".

 

[bmugford]

A few legal questions:

- Have you ever received a legal threat about your domains, for example a trademark conflict letter from a trademark owner? If so, how did you respond?

Yes, many times.

I will give you one real world example. I owned the domain EdibleGarden.com.
I received a letter from some lawyer, representing a company with a brand new class B (intent to use) TM filing.

Their claims were nonsense. I told them that.

Then, around the same time period I was also contacted by Edible Arrangements regarding the same domain.

They somehow think they just have blanket ownership of the term "Edible". I pushed back on that nonsense as well, then CCed the other party and told them to figure out who owns "Edible" then get back to me. I never heard from either party again.

- Have you ever lost a domain name because of a legal issue, such as a trademark conflict?

No. Though, I have sold domains that start that way...when the party pays fair market value.

- Besides checking the registered trademarks upfront before registering or acquiring a domain name, what steps do you take to legally protect your domain portfolio?

I decided to move to for sale only landers. I believe PPC landers can sometimes cause potential TM issues that would not otherwise exist. For instance, the term can be largely generic but be feeding in ads related to one specific TM holder.

- Let's say you want to acquire CoolName.com (just a sample domain), you check the registered trademarks and you cannot find any conflicts, so you go ahead and acquire this domain. But then later, after acquiring this domain, someone else registers the CoolName trademark, then this trademark owner will contact you about this potential trademark conflict. Has this ever happened to you, and if so, how did you respond? Or how would you respond in this case? I am asking this because if you have such a large portfolio, then even if you check the trademarks upfront, someone might still register a conflicting trademark later, after the date of your domain name acquisition.

Yes, the Edible Garden case above is a good example of that.

I would evaluate it on a case by case basis.

If claims are BS, I am going to tell them they are BS.

A lot of these companies are looking for low hanging fruit, and when they receive pushback they just slink away.

Brad

 

[bmugford]

Ok so let's say there are brandable two-word .com domains where the expected STR will be 2-3% yearly (so like the average-level brandable domains on BrandBucket or Squadhelp), then what is the ratio you would pay for these domains in wholesale price, compared to the end-user price? Assuming that the domains are brandable .com domains with an end-user price of $2000 - $20,000 and with 2-3% expected STR.

Is this just a random brandable, or a brandable term that already has some potential end users?
The reason I ask is because people use brandable in different ways.

If there are obvious potential end users, I would be willing to pay a higher ratio.

But for argument's sake, let's take reseller value and end users out of the equation.

Sometimes I buy domains simply because they "sound good" as a brand, even if they are not in use.

If you want actual numbers I would prefer to buy this type of domain for $100 - $350.
I would generally price it around mid $X,XXX.

I buy domains with a long term mindset. The math works better over time, than in year 1.
Plus, with a large portfolio you will make the random outlier sale here and there.

Brad

 

[bmugford]

What is your approach to a domain that you don't want to renew, that is nearing expiration and isn't selling?

I just let it drop.

I have never really found it that time efficient to try and sell them.
It might be for some, but in my situation I don't really drop enough domains for it to make sense.

I am normally dropping them for a reason, so I doubt I would get much for them.

Brad

 

[bmugford]

for comparable sales > do you share namebio, domain blog links? or how do you show them?

When it comes to framing the value, let's say someone offers $1,000 on a domain like DallasHomes in .COM.
It is worth FAR more than that.

I might bring up the fact that Dallas is a top (10) city in the US, and the much less desirable FortWorthHomes in .COM sold for $34,100.

I generally don't just send a laundry list of comp domain sales. It has to make sense in the negotiation.

Brad

 

[bmugford]

Hi Brad!
Tell me, please, when buying dictionary domain what one to give preference to dot ORG or XYZ? Thanks advance

.ORG. It is often the first choice of end users, especially in certain fields.

There are also no "premium" registration or renewal fees. Every domain has a standard fee.

Brad

 

[bmugford]

Hi Brad,

Thanks for the opportunity.

1. Have you developed any domains?

It depends what type of development you mean.

I have done some mini-sites in the past.
I have developed some personal sites.

Probably nothing that would qualify as "major" development though.
I am more a natural investor than a developer.

2. Have you monetized domains with forwarding, landing page ads (not parking), lead generation? if yes, which had better success?

I have done some mini-sites and lead generation stuff in the past. I developed several wedding photography domains that generated leads. I was working with local photographers but it became too much of a pain to manage and track.

Wedding photography is a tough lead gen niche because each photographer can only do so many events.
It is very seasonal and really only something on weekends.

Brad

 

[bmugford]

Hello Brad,
I am a great fan of yours, since recent days, I am continuously reading your very constructive messages on NamePros. Thank you for sharing your best experience. Today I have a few questions, please shed some lights:

Thanks for the kind words.

1. Which Nameservers return good Sales?

I generally use Afternic or Dan.com. On Afternic I have many non .COM and lower end .COM priced.
On Dan.com I have many of the same priced domains, but far more that are unpriced and available via offers.

2. Which is the best tool or website to see the LATEST Trending Keywords?

This is not really something I use much when evaluating domains. I know money can be made in trends, but that is not generally something I chase.

3. What are the sure shot tricks or strategies to secure a desired Pending Delete name?

Thank you very much.

Bring your wallet.

I wish I knew the secret, outside just paying more.

Brad

 

[jhm]

Easily one of the people I respect the most in the forum. I certainly pay attention to people like Brad, very reasonable and thoughtful with his comments

I'm trying to think of something half interesting for you, but I'll throw this one. If you had a magic wand, what is the most meaningful thing that you'd like ICANN to change or do in the future, and could they be incentivized in some way to do it (if you've got more than one on your list, so be it)

 

[bmugford]

Hey Brad.
Long time.
Do you have 1 domain story that keeps you up at night ? Maybe the one you most regret not buying because you thought it was too much money or you missed at an auction because the auction went on for 8 hours?

There are certainly domains I regret not buying. I remember seeing a list of domains for sale sometime in the mid to late 90's. It included domains like Caught.com, Bisbee.com, and Devil.com. The asking price listed was $5K each.

I wanted to purchase Devil.com, but at the time I was a broke kid in high school. I probably could have raised the funds if I really wanted to, but didn't go after it.

Then again, that price was probably just related to the time frame. I have no doubt $5,000 could have bought some spectacular domains then.

Something else that comes to mind was I had a chance to buy a NNN.com for $12,500 about 12 years ago.
This was not some random NNN.com, it was very high quality one. I should have bought it.

Another was a package of (20) NNNN.com for $10K. Almost immediately after I passed, they exploded in price.

You've been doing this a long time. What's domainer retirement look like to you ?

Probably not much different than what I doing now. You can basically do this from wherever, and it takes a limited portion of my time.

Brad