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

 

[Charybdis]

Domaining is ....... % art and ....... % science.

Please fill in the percent values in the sentence above.

 

[The Ahir]

Congratulations @bmugford .
This thread is most popular on Namepros This Week.

 

[bmugford]

Besides DataCube, have you developed other domains? Have you sold any websites?

Keep up the good work and you will realize your goal.

I used to be proficient in html many years ago. Does that count?

I have just done basic things like mini-sites, lead generation, personal webpages, a few campaign websites.

I did sell a couple lead generation websites (very basic) that I created to end users, but the value was probably more based on the domains.

I have not really done any of that stuff in a long time though.

Brad

 

[bmugford]

hi,Brad
1/ how do you think about new gtld ?

I don't really invest in new extensions, though I am not against them for high quality combos at reasonable prices.
With new extensions, the registries have largely held back a lot of those combos or like .XYZ have introduced premium registration and/or renewal tiers.

I am not really interested in any domain that carries a substantial renewal fee, as an investor.

2/ have you invested in web3 domains such as ENS / UD ,what is your views about them?

I own one .eth. My brand. I think the utility remains to be seem, but bought it just in case.
It was only $5/year, plus a massive gas fee at the time.

I believe legacy extensions can also be used now with ENS.

I posted about Unstoppable Domains earlier in this thread. They market "decentralization" yet are suing the handshake .wallet over their .wallet. In their lawsuit they are basically making arguments for centralization, which kind of defeats the purpose.

3/ comparing web2 domains and web3 domains, what is your comments in details? how to combine them in investing ?
thank you in advance !

They need to solve the issue of utility. If they require special software and/or settings they are always going to have an issue with mass adoption.

You also have the issue of ICANN sponsored extensions that work on standard root servers.
What happens to UD .wallet or HNS .wallet, when ICANN releases a .wallet?

Brad

 

[bmugford]

Domaining is ....... % art and ....... % science.

Please fill in the percent values in the sentence above.

I think you would have to break it down into different aspects of domaining.

Many types of domains you can target based almost purely on analytics, such as keywords.

It starts to become more of an art when you are talking about brand types.
The type of domains that are not obviously good.

It is an art when it comes to how much to pay, pricing domains, likelihood of sales, negotiation, etc.

I would say both are equally important, so 50/50 I guess.

Brad

 

[bmugford]

Thanks for your generous sharing, Brad. Here's my question.

Mike Mann has been able to regularly sell apparently plain domains for 5 figures while neither dotDB nor Google search indicates great potential. Of course, it only takes one very keen buyer to pay for such prices. What's your experience in such "shoot for the moon" pricing approach?

The key to making sales like that is owning a massive portfolio and having an extremely low sell-through rate.

I personally don't think it is the best business model.

Think of how many good to great offers you have to turn down to make one absurd sale on an average quality domain.

It seems with a portfolio that size you would be far better off just pricing domains in an average end user price range, and letting the average sell-through rate take care of itself.

These massive portfolios also come with massive renewal fees. You have to account for all the domains you don't sell in a year, not just the domains you do sell.

I don't mind "shooting for the moon" when the quality of domain justifies it.

Brad

 

[Charybdis]

Why don't you list your brandable domains on brandable domain marketplaces like BrandBucket and Squadhelp?

If you list the same domain name with BIN price on 2 or more marketplaces at the same time, what happens if a customer buys your domain on marketplace "A", then a few minutes later, another customer buys the same domain on marketplace "B"?

 

[gblasting]

Why don't you list your brandable domains on brandable domain marketplaces like BrandBucket and Squadhelp?

If you list the same domain name with BIN price on 2 or more marketplaces at the same time, what happens if a customer buys your domain on marketplace "A", then a few minutes later, another customer buys the same domain on marketplace "B"?

This imaginary double sale just never happens. I doubt this has happened up to 10 times in the entire history of domaining.

 

[jim h]

Great sharing. I think these questions and their answers will enlighten everyone.
Thank you, Brad.

 

[bmugford]

Why don't you list your brandable domains on brandable domain marketplaces like BrandBucket and Squadhelp?

I don't really think the commissions are worth it. You are essentially talking 25% - 35% commissions on sales.

BrandBucket for instance appears to charge -

30% below $10K.
25% $10K - $50K.

I don't like how they demand exclusivity in the listing.
Also, I don't like how they set the price range and you can only move it 20%.

Squadhelp has a similar fee issue -

35% below $2499.
30% $2500 - $5000.
25% $5001 - $50,000.

They also demand exclusivity.

This might be right for some people, but to me the exclusivity and high commissions are not appealing.

If you list the same domain name with BIN price on 2 or more marketplaces at the same time, what happens if a customer buys your domain on marketplace "A", then a few minutes later, another customer buys the same domain on marketplace "B"?

It has happened to me before, but it was the same buyer that bought it at (2) venues.

I would just suggest going through sold/dropped domains and removing them from other venues as soon as you can.

If this rare event does occur, with different buyers, there is not much you can do.

Brad

 

[Charybdis]

I don't really think the commissions are worth it. You are essentially talking 25% - 35% commissions on sales.

BrandBucket for instance appears to charge -

30% below $10K.
25% $10K - $50K.

I don't like how they demand exclusivity in the listing.
Also, I don't like how they set the price range and you can only move it 20%.

Squadhelp has a similar fee issue -

35% below $2499.
30% $2500 - $5000.
25% $5001 - $50,000.

They also demand exclusivity.

This might be right for some people, but to me the exclusivity and high commissions are not appealing.


It has happened to me before, but it was the same buyer that bought it at (2) venues.

I would just suggest going through sold/dropped domains and removing them from other venues as soon as you can.

If this rare event does occur, with different buyers, there is not much you can do.

Brad

Thank you, I appreciate your response!

In case of BrandBucket they automatically list your domains on Sedo and Dan, and you are allowed to manually list the domain on Afternic Fast Transfer. So basically you can use the same venues you use now, plus you add the Brandbucket traffic into the mix.

But it's true that you can only increase the prices by max. 20% (as far as I know, maybe above a certain portfolio size this is not the case).

In case of Squadhelp, the commission is just 30% actually below $5000 (not 35%), and it drops to 25% after 2 years. They also list your domains on Sedo automatically and you can manually list the domains on Afternic Fast Transfer. But here Dan listings are not supported. If you have at least 101 domains on Squadhelp, then you can increase the prices by up to 100%, and if you have at least 501 domains then you can increase the prices by up to 300%.

So I think in practice they don't demand exclusivity, since you can still list the domains on all major marketplaces.

And if the commission is high then you could just increase the prices by 15-20% to cover the higher commission, but in turn you would receive more traffic.

I like these brandable marketplaces because they provide a search function where the buyers can search by keywords and categories, and they can find your domains by keywords.

For example in case of your BuildingBridges.com domain: how would the potential buyers find this domain? They need to enter this exact domain into their web browser to find it. Or enter this domain at a domain name registrar, but they need to enter this exact domain name to find it.


But if you listed it on a brandable marketplace then the buyers would find it by keywords such as "connection", "community", "bridge", "trust", "unite", "charity", "people", "world", "peace", "help" etc.

Isn't it very hard to sell such domains without that extra marketing?

In case of Dan if I enter "community", then I won't find this domain, because Dan will output only those domains which contain "community".

So in short my question is, don't you think you are missing out on sales by not listing your domains on brandable marketplaces where the buyers can search by keywords and categories?

 

[bmugford]

Thank you, I appreciate your response!

In case of BrandBucket they automatically list your domains on Sedo and Dan, and you are allowed to manually list the domain on Afternic Fast Transfer. So basically you can use the same venues you use now, plus you add the Brandbucket traffic into the mix.

I was just going by the information they provided -

https://www.brandbucket.com/seller-terms

9. Exclusivity: When you become a seller, you are electing to make your domain names available exclusively on our Marketplace, and will remove any listings for your domain names elsewhere.

In case of Squadhelp, the commission is just 30% actually below $5000 (not 35%), and it drops to 25% after 2 years. They also list your domains on Sedo automatically and you can manually list the domains on Afternic Fast Transfer. But here Dan listings are not supported. If you have at least 101 domains on Squadhelp, then you can increase the prices by up to 100%, and if you have at least 501 domains then you can increase the prices by up to 300%.

So, again I was just going by the information they provided -

https://www.squadhelp.com/marketplace-benefits

And if the commission is high then you could just increase the prices by 15-20% to cover the higher commission, but in turn you would receive more traffic.

The more you raise prices, they less likely a domain is to sell.

Isn't it very hard to sell such domains without that extra marketing?

In case of Dan if I enter "community", then I won't find this domain, because Dan will output only those domains which contain "community".

So in short my question is, don't you think you are missing out on sales by not listing your domains on brandable marketplaces where the buyers can search by keywords and categories?

Not really. I think the vast majority of domains sell either via lander traffic, or marketplaces with around 50% of the market share like Afternic/GoDaddy or their fast transfer network.

I prefer setting my own prices. I prefer handling my own leads.

These type of venues are just not for me, but I can see how they could be appealing to others.

Brad

 

[Chieff]

Hi,

Whats your most preferred marketplace to sell domains for newbie

What is the average length of domain names sold (except short names) ?

How you choose domains what type of end user / industry specific?

what kind keywords one should focus if starting as a newbie to make fast sales?

What type of research you make before buying a domains?

Thanks

 

[LoveCatchyDomains]

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

Brad, when you offered an appraisal of a domain, is this something that we could ask for on your AMA here, but get a response via a PM?

 

[Charybdis]

How important metric is the number of other TLDs taken in case of .com domain names? Did you sell .com domains for high prices where the number of other TLDs taken were very low?

 

[bmugford]

Hi,

Whats your most preferred marketplace to sell domains for newbie

I don't think it really matters that much if you are a newbie or seasoned investor when it comes to venues.

I mainly use Afternic and Dan.com at the moment. I have some domains using Afternic BIN landers, and more using Dan.com landers.

There are other good options as well, but that is my personal preference.

What is the average length of domain names sold (except short names) ?

For .COM, most are (2) word domains probably 8-15 letters in length.
For non .COM, most are single words, 8 letters or under.

How you choose domains what type of end user / industry specific?

I try to put myself in the shoes of an end user. If I was in the field, would I want this domain enough to pay a premium price for it? If so, it is a domain I will target regardless of the industry.

what kind keywords one should focus if starting as a newbie to make fast sales?

I don't think there is really any secret formula to making fast sales.

Though they tend to have limited upside, GEO domains can be a good starting point for a new investors to learn the type of domains and fields that have value.

Brad

 

[bmugford]

Brad, when you offered an appraisal of a domain, is this something that we could ask for on your AMA here, but get a response via a PM?

Yeah, that would probably work.

If someone is interested in an appraisal, post it in this thread and I will respond via PM.

I might not give an exact number, but I will give my thoughts on the domain.

Brad

 

[bmugford]

How important metric is the number of other TLDs taken in case of .com domain names?

I would say it is relatively important, as long as the domains taken are relevant.
If the term is used in many other extensions and domains, there is likely a nice pool of potential end users.

Did you sell .com domains for high prices where the number of other TLDs taken were very low?

Sure. It happens quite often actually.

In my view .COM is really the only extension where you can make large sales simply because a domain "sounds good". All it takes is one buyer.

Statistically though, the one with more domains taken is more likely to sell as there are more potential buyers.

Brad

 

[eternaldomains]

Can you share your experience on negotiations with buyers? (No need specific details of course, just a rough dialogue on how you two communicate during negotiations if possible)

 

[gblasting]

Yeah, that would probably work.

If someone is interested in an appraisal, post it in this thread and I will respond via PM.

I might not give an exact number, but I will give my thoughts on the domain.

Brad

Thanks for the AMA, Brad.

I see that you have a bunch of one word .us yourself. I'll like your thoughts on Talent(dot)us and Electron(dot)us

 

[bmugford]

Can you share your experience on negotiations with buyers? (No need specific details of course, just a rough dialogue on how you two communicate during negotiations if possible)

I tend to focus my time and energy on inquires that actually have a chance of panning out.
I would estimate that being about 10% - 20% of inquiries.

The vast majority of offers I get are lowballs on domains that are worth far more.

I will generally ignore those, straight out reject them, or reject them with a message like price expectations or framing the market value. Many times these potential buyers will come back with better offers.

If someone has a bad attitude, that is the quickest way to get the offer ignored.

That would be something like -

"You are not using this domain. I am the only party that would ever be interested in this domain"

That type of offer is put straight into the garbage.

Also, when people mention things like "non-profit", "school project", etc. it almost always comes with a lowball offer attached.

I don't really care that much about the budget or usage of a potential buyer. I price domains based on my perceived market value, with rare exceptions.

Brad

 

[bmugford]

Thanks for the AMA, Brad.

I see that you have a bunch of one word .us yourself. I'll like your thoughts on Talent(dot)us and Electron(dot)us

Talent is a great keyword. There are so many potential users for a domain like that.

Electron is solid. Those are the type of terms I price around $2,000 to $3,500 and sell a decent amount.

Brad

 

[Charybdis]

About private domain acquisitions (when the domain is not for sale but you contact the owner and try to buy it anyway):

- Have you tried private domain acquisitions?
- If so, is it an effective way to get domains for wholesale prices or is it a waste of time?

 

[bmugford]

About private domain acquisitions (when the domain is not for sale but you contact the owner and try to buy it anyway):

- Have you tried private domain acquisitions?

Sure. I have privately acquired many domains in the past.

- If so, is it an effective way to get domains for wholesale prices or is it a waste of time?

To me it is a bit of a numbers game. You can go long periods of time without buying anything, despite the effort.

If you are approaching owners of popular formats like LLL.com, it is safe to assume they have received many offers before.

It is certainly possible to acquire good domains this way, but it is also more difficult now to track down owners with almost every registrar applying WHOIS privacy.

Brad

 

[eternaldomains]

1) How long does it usually take for serious inquiries to go from 1st offer to final price agreement & how many replies go back and forth?

2) Another for serious inquiries: are your replies to the buyer usually short or long?

3) When replying a buyer with "framing the market value" do you cite NameBio etc links to them or is it more of a "claim without citations"? Asking this one because I'm wondering if buyers might use the cited tool to cite/negotiate lower prices.