tips I'm really happy to pay 20% or even 30% commission to good platforms. Here's why.

[twiki]

I just got a comment today, that 30% SquadHelp commission is an insane amount. (It's not the first time I get such a comment though). And I know it's a judgement error, so here's my response and some advice for other NP members here.

In domaining, there is a mindset of scarcity, and also a mindset of abundance. I choose the latter. Why? Because it's the only one that works. And in business in general.

When someone tells me that 20% commission (Afternic) is too much, or 30% at SquadHelp, well, I know this is a actually a fair percentage. That's also why it is accepted by sellers. And here's the reason.

I don't care how much the other guy gets. What I care about is, how much I am left with. And what do I get out of it. So should you.

This sale I just got, for A/d/a/p/t/y/v/e/ .com would probably have never been made outside of SH as this is a brandable. Unless listed at SH or another brandable marketplace with a lot of traffic, chances would have been nil. Why? Because with Afternic network or Sedo, if your domain is not a searchable one (this isn't), chances are nobody will ever buy the domain. Also the landers don't generally help at all because such domains don't get search engine traffic. They're in a black zone, unless brought to light by a brandable marketplace.

So I just got 70% of the $2299, instead of 100% of nothing.

The same thing applies with Afternic fees which are the highest in the non-brandable marketplaces zone.

I pay 20% at Afternic, and less than 10% elsewhere (e.g. 9% at Dan). Yet all my landers are currently pointing either at Afternic (20% commission; searchables) and some at SH (30%; brandables). Why? Because this brings me the most money overall. Even after deducting all those extra % fees.

With NS5/NS6 at Afternic , that GoDaddy name + a phone where anybody can call means I get a LOT of good sales which otherwise won't be accomplished. The GD name brings trust; many domain buyers are quite wary of online buys.

Also the phone number improve conversions a lot. This is why 20% commission here actually means more money in the pocket for me, rather than say 9% or 10% at another platform where I only get a lander sale, but the buyer never heard of that platform and also there is no phone to call. Side note Afternic brokers are also very good = more sales.

Now with SH what I get is an entire tier of domain sales that would never have existed. (Or with any other brandable marketplace you'd like). SH has a lot of AI and merchandising behind their platform; stats; category based sales; great logo designers; classification experts bringing best categories and descriptions for your domain; contests pushing your domain sales and more. Plus instant support.

All this costs money, much more than yet another lander. But it brings sales - ton of extra sales, and high value sales for domains because of all that merchandising. That's why it is worth it. I can for example double my sales for the same portfolio size, by paying a measly 10% extra. That's quite cheap if you do the math. Even if I get just one more sale at each say 7-8 domains sold elsewhere, it IS worth it. It means profit.

Also, about scarcity.

I've seen a lot of people losing in this business because they're not flexible enough, they value their domains too much or are too attached to them. Al these choices are bad ones.

If you're not willing to give out another 10% of your commission in exchange for far better sales, you're losing, not winning this game.

Because in domaining the most important factor is sales ratio. I'm gonna say this again, just to make sure you understand it. In domaining, the most important factor is sales ratio. Keep this in mind. Do everything you can to improve that factor. Do the math. Your platform choice is a very important factor that can make the difference between success and failure with domain selling.

Say a given platform like Afternic has 10% more commission. But if, again, they bring 20% more sales, you're in profit because overall you sold more and you're left with more money. Use the difference to buy a few more great names, or - why not? Pocket the profit and spend it as you'd like.

This is why you should always test and measure such things. Math on paper.

And yet another thing about scarcity:

"I'm selling too many of my names and too much % goes to others" etc. Many inexperienced domainers apply this kind of scarcity thinking to their names. Well - did you ever do the math properly? Did you A/B test platforms? Is it good to choose selling LESS names instead of giving out a larger % but for much more sales, which, in turn, will leave you with far more in the pocket?

What many less experienced domainers also forget, is that domain sales ratio usually ranges at 1...2% per year in case of 4-fig domains for example which make the bulk of the market. This means that your feeling of "giving out too may of your names or too much %" is just... a scarcity mindset that actually works against you.

That means, say in one year if you have 100 names and sold 2, you have 98 domains. And you might have made some money, or not - because you have to pay for renewal of 98 names, which costs a lot (98x$10 = $980 for example). But if you sold 4 names, your profit skyrockets because you have DOUBLED your income, and all those extra sales will be 100% profit. And you still have 96 names left to sell, which means, you sold 2% of your portfolio for a multiple-fold profit. With the extra profit you got, you can easily pay for a few more names to cover the few you sold AND still have a lot more in your pocket.

Those extra SH sales will bring me at least a solid extra 5-fig over this year. That's why I use Afternic, SH and would use any other decent but perhaps high priced marketplace. Because without them, overall I'd be at a loss.

Do the math, guys. Always do the math. And avoid the scarcity mindset.

Happy domaining!

 

[Mifuru]

I just got a comment today, that 30% SquadHelp commission is an insane amount. (It's not the first time I get such a comment though). And I know it's a judgement error, so here's my response and some advice for other NP members here.

In domaining, there is a mindset of scarcity, and also a mindset of abundance. I choose the latter. Why? Because it's the only one that works. And in business in general.

When someone tells me that 20% commission (Afternic) is too much, or 30% at SquadHelp, well, I know this is a actually a fair percentage. That's also why it is accepted by sellers. And here's the reason.

I don't care how much the other guy gets. What I care about is, how much I am left with. And what do I get out of it. So should you.

This sale I just got, for A/d/a/p/t/y/v/e/ .com would probably have never been made outside of SH as this is a brandable. Unless listed at SH or another brandable marketplace with a lot of traffic, chances would have been nil. Why? Because with Afternic network or Sedo, if your domain is not a searchable one (this isn't), chances are nobody will ever buy the domain. Also the landers don't generally help at all because such domains don't get search engine traffic. They're in a black zone, unless brought to light by a brandable marketplace.

So I just got 70% of the $2299, instead of 100% of nothing.

The same thing applies with Afternic fees which are the highest in the non-brandable marketplaces zone.

I pay 20% at Afternic, and less than 10% elsewhere (e.g. 9% at Dan). Yet all my landers are currently pointing either at Afternic (20% commission; searchables) and some at SH (30%; brandables). Why? Because this brings me the most money overall. Even after deducting all those extra % fees.

With NS5/NS6 at Afternic , that GoDaddy name + a phone where anybody can call means I get a LOT of good sales which otherwise won't be accomplished. The GD name brings trust; many domain buyers are quite wary of online buys.

Also the phone number improve conversions a lot. This is why 20% commission here actually means more money in the pocket for me, rather than say 9% or 10% at another platform where I only get a lander sale, but the buyer never heard of that platform and also there is no phone to call. Side note Afternic brokers are also very good = more sales.

Now with SH what I get is an entire tier of domain sales that would never have existed. (Or with any other brandable marketplace you'd like). SH has a lot of AI and merchandising behind their platform; stats; category based sales; great logo designers; classification experts bringing best categories and descriptions for your domain; contests pushing your domain sales and more. Plus instant support.

All this costs money, much more than yet another lander. But it brings sales - ton of extra sales, and high value sales for domains because of all that merchandising. That's why it is worth it. I can for example double my sales for the same portfolio size, by paying a measly 10% extra. That's quite cheap if you do the math. Even if I get just one more sale at each say 7-8 domains sold elsewhere, it IS worth it. It means profit.

Also, about scarcity.

I've seen a lot of people losing in this business because they're not flexible enough, they value their domains too much or are too attached to them. Al these choices are bad ones.

If you're not willing to give out another 10% of your commission in exchange for far better sales, you're losing, not winning this game.

Because in domaining the most important factor is sales ratio. I'm gonna say this again, just to make sure you understand it. In domaining, the most important factor is sales ratio. Keep this in mind. Do everything you can to improve that factor. Do the math. Your platform choice is a very important factor that can make the difference between success and failure with domain selling.

Say a given platform like Afternic has 10% more commission. But if, again, they bring 20% more sales, you're in profit because overall you sold more and you're left with more money. Use the difference to buy a few more great names, or - why not? Pocket the profit and spend it as you'd like.

This is why you should always test and measure such things. Math on paper.

And yet another thing about scarcity:

"I'm selling too many of my names and too much % goes to others" etc. Many inexperienced domainers apply this kind of scarcity thinking to their names. Well - did you ever do the math properly? Did you A/B test platforms? Is it good to choose selling LESS names instead of giving out a larger % but for much more sales, which, in turn, will leave you with far more in the pocket?

What many less experienced domainers also forget, is that domain sales ratio usually ranges at 1...2% per year in case of 4-fig domains for example which make the bulk of the market. This means that your feeling of "giving out too may of your names or too much %" is just... a scarcity mindset that actually works against you.

That means, say in one year if you have 100 names and sold 2, you have 98 domains. And you might have made some money, or not - because you have to pay for renewal of 98 names, which costs a lot (98x$10 = $980 for example). But if you sold 4 names, your profit skyrockets because you have DOUBLED your income, and all those extra sales will be 100% profit. And you still have 96 names left to sell, which means, you sold 2% of your portfolio for a multiple-fold profit. With the extra profit you got, you can easily pay for a few more names to cover the few you sold AND still have a lot more in your pocket.

Those extra SH sales will bring me at least a solid extra 5-fig over this year. That's why I use Afternic, SH and would use any other decent but perhaps high priced marketplace. Because without them, overall I'd be at a loss.

Do the math, guys. Always do the math. And avoid the scarcity mindset.

Happy domaining!

Thats a great post, but he is very primitive. You are happy to pay such a price only for the reason that all the work is done for you. You only get money from successful domain sale from marketplaces and pay up to 30% for listing. I know how direct sales under contracts work, it's much easier and cheaper than you think.

 

[boker]

"If you really want to prove your point"
He doesn't want and doesn't need to prove his point If you don't believe what he says, just move on and proceed with your own method.

It's not about 'want' or 'need', this is a forum and everything is up to debate, but when you are trying to say something, it's normal to be asked 'how' and 'why'. SH is a taboo subject and we are not aloud to discuss it?

 

[Mifuru]

It's not about 'want' or 'need', this is a forum and everything is up to debate, but when you are trying to say something, it's normal to be asked 'how' and 'why'. SH is a taboo subject and we are not aloud to discuss it?

What is SH?

 

[twiki]

Show attachment 209530


Two key decisions: Market (Null NS vs Listing) at the right time and Selling at the right time. (A growing customer base ensures the $ flow.) Track & Research

Regards

Thanks

It's a long story, but the short version, to make proper research you need to have a much smaller portfolio. Time. I'm in a transitioning process to make more time available.

Research - still have to research more on that

 

[twiki]

I have started building the for sale portfolio since 2015 (approx around time I registered on the forum), although have been owning and selling domains occasionally way longer (bought for my own projects, sold via incoming communications).

Since then, I have been doubling every year roughly. So, about half of the names are owned under 1 year.

Auction won names, plus other bought ones are under 500, including around 400 LLLL.coms

The rest are 99% closeout bought.

Yes, it is as I thought. Your portfolio is stronger. You started earlier indeed, I had like half that time at my disposal. Entering so late in the market has big downsides.

I've looked at some of the names and it's clear to me. These are names that do sell nicely just with a lander, and Dan is good tor that. The difference in quality has that effect. But also, I'm still making room for a much more tailored approach. So far it has been mostly volume based rather than individual domain research and attention. I'm addressing this right now. I do have some names like that but have to think more.

Most of my names are drop regs and some closeouts, but not many. With drop regs, anything above 1k is automatically snapped by DC and in many cases it is not worth it to enter an auction which often goes into insane pricing zone.

I'm currently transitioning from a discount / volume style to retail style but it's still a process.

 

[boker]

Yes, it is as I thought. Your portfolio is stronger. You started earlier indeed, I had like half that time at my disposal. Entering so late in the market has big downsides.

I've looked at some of the names and it's clear to me. These are names that do sell nicely just with a lander, and Dan is good tor that. The difference in quality has that effect. But also, I'm still making room for a much more tailored approach. So far it has been mostly volume based rather than individual domain research and attention. I'm addressing this right now. I do have some names like that but have to think more.

Most of my names are drop regs and some closeouts, but not many. With drop regs, anything above 1k is automatically snapped by DC and in many cases it is not worth it to enter an auction which often goes into insane pricing zone.

I'm currently transitioning from a discount / volume style to retail style but it's still a process.

I deal mostly with hand regs and Dan works way better for me, compared to afternic and SH. With brandables, you could not have any views for a domain for months and sell at first view, so the landing page is doing 90% of the job, for certain domains.

 

[twiki]

I deal mostly with hand regs and Dan works way better for me, compared to afternic and SH. With brandables, you could not have any views for a domain for months and sell at first view, so the landing page is doing 90% of the job, for certain domains.

Hand regs can be quite different from drops depending on what you reg.

Anyway I've always had very weak results with Dan, including recently.

Edit: But my portfolio is changing, so who knows, it might be worth going back to Dan at some point.

 

[Recons.Com]

Yes, it is as I thought. Your portfolio is stronger. You started earlier indeed, I had like half that time at my disposal. Entering so late in the market has big downsides.

I've looked at some of the names and it's clear to me. These are names that do sell nicely just with a lander, and Dan is good tor that. The difference in quality has that effect. But also, I'm still making room for a much more tailored approach. So far it has been mostly volume based rather than individual domain research and attention. I'm addressing this right now. I do have some names like that but have to think more.

Most of my names are drop regs and some closeouts, but not many. With drop regs, anything above 1k is automatically snapped by DC and in many cases it is not worth it to enter an auction which often goes into insane pricing zone.

I'm currently transitioning from a discount / volume style to retail style but it's still a process.

Well, think of it this way: over 9k domains out of 17k are registered in the past 12 months. So, entering late is not that much of a factor. And I am planning to add another 10k-15k domains in the next 12 months.

But, yes, each name has to be researched. Of course, there are times when I just like a name and don't care to check anything

Back to the subject, I agree with your overall premise that the commission doesn't matter as long as a platform delivers accordingly.

The problem is all these platforms like BB, BP, SH, Alter are doomed to fall back towards industry normal STRs as their size grows. They can demonstrate the outstanding 3%-10% STR only when they are really small in 5000-20000 portfolio size range. As they near 100k, it is closer to 2% average and in 1%-1.5% for regular sellers there that are not either insiders, or staff, or the preferred ones, or the ones willing to spend bunch of time there. And in 100k-200k portfolio size, the STR is nearing 1%-1.5% overall and even lower further. At this point, it is pointless to pay them 20%-35%, as they are not delivering 30%+ sales boost consistently (in fact, has to be 50%+ to be worth it, again, given the money, time investment, and limits).

 

[twiki]

Well, think of it this way: over 9k domains out of 17k are registered in the past 12 months. So, entering late is not that much of a factor. And I am planning to add another 10k-15k domains in the next 12 months.

But, yes, each name has to be researched. Of course, there are times when I just like a name and don't care to check anything

Back to the subject, I agree with your overall premise that the commission doesn't matter as long as a platform delivers accordingly.

The problem is all these platforms like BB, BP, SH, Alter are doomed to fall back towards industry normal STRs as their size grows. They can demonstrate the outstanding 3%-10% STR only when they are really small in 5000-20000 portfolio size range. As they near 100k, it is closer to 2% average and in 1%-1.5% for regular sellers there that are not either insiders, or staff, or the preferred ones, or the ones willing to spend bunch of time there. And in 100k-200k portfolio size, the STR is nearing 1%-1.5% overall and even lower further. At this point, it is pointless to pay them 20%-35%, as they are not delivering 30%+ sales boost consistently (in fact, has to be 50%+ to be worth it, again, given the money, time investment, and limits).

Great analysis, thanks for that.

Edit: Even if your names are recent, there's also the advantage of experience. I've seen that each 3-6 months my investment goes into a completely new stage, a leap forward. Since there are so many learning steps behind, I can assume there are also many such steps going forward.

 

[freety85]

With drop regs, anything above 1k is automatically snapped by DC

May I ask what do you mean by 1k threshold ? GD value or retail value?

 

[twiki]

May I ask what do you mean by 1k threshold ? GD value or retail value?

Long discussion, but making it short: Retail value. Of course the higher the price (and TLDs, etc) the higher the chance of sale but also of it being DC-ed.

In general, domains worth at least $2..$3k and above are usually snapped fast. The drop is not what it used to be couple years ago. There are still some going falling through the fingers DC, SN but the ratio is getting smaller and smaller as time passes by.

 

[NameWell]

You should learn how to track & research prospects activity and make better decisions; when to sell follow-the-logic brandables and get the most for them. *Research methods - tools.

Regards

Could you please elaborate on that?

 

[Recons.Com]

Great analysis, thanks for that.

Edit: Even if your names are recent, there's also the advantage of experience. I've seen that each 3-6 months my investment goes into a completely new stage, a leap forward. Since there are so many learning steps behind, I can assume there are also many such steps going forward.

I love how analytical you are and can manage to deduct great conclusions from any piece of info.

You are absolutely right. What is invaluable and hard to substitute is the learning curve from your own portfolio.

That is the main reason I double every year, not triple or quadruple. Basically, I analyze the results of the past and implement towards the future. I also train the "gut feel" that allows often tell if the name is good just by a quick glance. And then you basically just verify the gut feel by further check. And, with experience, you notice that the check just confirms your feel way more often than not.

 

[twiki]

To make things a bit more clear for whoever doesn't really get much of this:

My model is probably different from most domainers here (if not entirely different). As any model, it has its pros and cons.

Until recently I have focused on meaningful domains and not so much on brandables. Had a mixed bag of .coms and ngTLDs and most were 2-words. I've decided to focus on .COMS further for the simple reason, the profit margin is indeed higher for me. 90% of the portfolio is made from drops, and recently I've started doing some handregs and closeouts. I only have like 800 closeouts so far and just sold my first from this category.

What makes my model different is volume. I have much more volume than I can handle. My investment money is limited (around 100k currently, varies) but most of all my time is limited. I also have 2 businesses apart from this, one paying most of my bills (domains is a side one) and a new real estate-based biz which is going to pay big, probably far more than domains in the near future. So I have to deal with domains in the time left. I have people who work for me and do the accounting and stuff but the core domaining part is still mine to do.

( Edit: I topped at 25K names, and that has been an insane pressure of work. Always decreasing portfolio since and aiming at 5k-10k names max for the future. )

Due to this, I've always had little time to spend on each individual domain so it has been a sort of a volume based. I prefer to discount rather to do lengthy research.

So I've been a discount domainer. Which means, I sell domains at half or even a quarter of the full retail price, in most cases. This, again, has pros and cons. The cons being, you sell them for less than their final value. But it saves me time. Also, I've already measured that when I discount a domain in half (50% of the retail price), the STR grows by 3x. Which means, the more I discount, the more money I make. Time and time again this has proven its validity (in my case).

There is an other inherent downside of this - you sell out more names. However, I'm still left with 9 out of 10 names (a 10% STR means that you still have 90% of your portfolio left). And since I do have a lot of volume, I have a lot of expires as well. I renew far less than I let expire because there's a lot of fish out there and new fish can be very interesting if you take a good peek. Haven't found yet a way to clear my expires properly; NP is too much hassle and NameLiquidate didnt provide results. So that's one side unresolved yet.

There is also a clear difference here from what others said (deriving from their retail models mostly). Drops are generally not high in value (apart from the occasional gems). If they stand out from the crowd just by a little, DC and SN are all on top of them so they're out of reach. Most drops are probs XXX range for a fast sale. I do have enough 4-fig sales though as well, but at the end of the day, half of the meat probably still comes in XXX range form.

My model has always been inspired from the big ones that do something of this sort. Like HugeDomains if you want, more or less. They don't do much research, if at all as far as I can tell. They have volume and more or less blanket investing. I've also seen that investor at Sav who bought everything matching a certain word that dropped, blanket reg without much filtering. That I don't do, I filter carefully what i reg. I still wonder if the model still works for that guy.

(Edit: But HugeDomains has a big advantage, they scooped up a ton of domains early so by now it's all profit even if they also still carry a lot of dead weight in my opinion )

I've recently decided however that it is time for me to do more closeouts, buys, even some handregs and delve into brandables. But due to lack of time it's still half baked, the brandable analysis. However as my portfolio shrinks the time increases so I will be able to follow things like @Lox always suggests and I very much like. It's also good for knowledge and maximizing profit.

There is, however, an inherent advantage from doing this volume. You get to learn a ton of niches and combinations. There's also the possibility that someday, with a certain amount of money to be invested, I will be able to increase the portfolio by a lot - due to the volume - and even if I have to renew a few times, as .COM prices continue to grow (and I have no doubt they will), it's a safe bet. Plus, retail price range sales of course as you sit on that portfolio and profit during this time.

Perhaps all this makes more sense now with insight into my model. Volume-wise, I register only a tiny fraction of what I'm discovering (budget and time constraints) and I'm always amazed how many of my expiring domains are caught by DC etc. But there's no hard feelings in my model - each sold domain pays for hundreds more (even if sold at discount) and by all means, there's so much fish out there.

( Later edit: I'm currently aiming for names which are at least 2K or more in retail value - have decided that this is the absolute limit from now on, for me at this point. Just a detail. )

 

[twiki]

I love how analytical you are and can manage to deduct great conclusions from any piece of info.

You are absolutely right. What is invaluable and hard to substitute is the learning curve from your own portfolio.

That is the main reason I double every year, not triple or quadruple. Basically, I analyze the results of the past and implement towards the future. I also train the "gut feel" that allows often tell if the name is good just by a quick glance. And then you basically just verify the gut feel by further check. And, with experience, you notice that the check just confirms your feel way more often than not.

That's the process. Unless you do this, you lose more - over time.

There's no replacement for that trained gut feeling. I'm also getting more into this as I make more room for it. It appears this learning process is a neverending one.

 

[freety85]

To make things a bit more clear for whoever doesn't really get much of this:

My model is probably different from most domainers here (if not entirely different). As any model, it has its pros and cons.

Until recently I have focused on meaningful domains and not so much on brandables. Had a mixed bag of .coms and ngTLDs and most were 2-words. I've decided to focus on .COMS further for the simple reason, the profit margin is indeed higher for me. 90% of the portfolio is made from drops, and recently I've started doing some handregs and closeouts. I only have like 800 closeouts so far and just sold my first from this category.

What makes my model different is volume. I have much more volume than I can handle. My investment money is limited (around 100k currently, varies) but most of all my time is limited. I also have 2 businesses apart from this, one paying most of my bills (domains is a side one) and a new real estate-based biz which is going to pay big, probably far more than domains in the near future. So I have to deal with domains in the time left. I have people who work for me and do the accounting and stuff but the core domaining part is still mine to do.

( Edit: I topped at 25K names, and that has been an insane pressure of work. Always decreasing portfolio since and aiming at 5k-10k names max for the future. )

Due to this, I've always had little time to spend on each individual domain so it has been a sort of a volume based. I prefer to discount rather to do lengthy research.

So I've been a discount domainer. Which means, I sell domains at half or even a quarter of the full retail price, in most cases. This, again, has pros and cons. The cons being, you sell them for less than their final value. But it saves me time. Also, I've already measured that when I discount a domain in half (50% of the retail price), the STR grows by 3x. Which means, the more I discount, the more money I make. Time and time again this has proven its validity (in my case).

There is an other inherent downside of this - you sell out more names. However, I'm still left with 9 out of 10 names (a 10% STR means that you still have 90% of your portfolio left). And since I do have a lot of volume, I have a lot of expires as well. I renew far less than I let expire because there's a lot of fish out there and new fish can be very interesting if you take a good peek. Haven't found yet a way to clear my expires properly; NP is too much hassle and NameLiquidate didnt provide results. So that's one side unresolved yet.

There is also a clear difference here from what others said (deriving from their retail models mostly). Drops are generally not high in value (apart from the occasional gems). If they stand out from the crowd just by a little, DC and SN are all on top of them so they're out of reach. Most drops are probs XXX range for a fast sale. I do have enough 4-fig sales though as well, but at the end of the day, half of the meat probably still comes in XXX range form.

My model has always been inspired from the big ones that do something of this sort. Like HugeDomains if you want, more or less. They don't do much research, if at all as far as I can tell. They have volume and more or less blanket investing. I've also seen that investor at Sav who bought everything matching a certain word that dropped, blanket reg without much filtering. That I don't do, I filter carefully what i reg. I still wonder if the model still works for that guy.

(Edit: But HugeDomains has a big advantage, they scooped up a ton of domains early so by now it's all profit even if they also still carry a lot of dead weight in my opinion )

I've recently decided however that it is time for me to do more closeouts, buys, even some handregs and delve into brandables. But due to lack of time it's still half baked, the brandable analysis. However as my portfolio shrinks the time increases so I will be able to follow things like @Lox always suggests and I very much like. It's also good for knowledge and maximizing profit.

There is, however, an inherent advantage from doing this volume. You get to learn a ton of niches and combinations. There's also the possibility that someday, with a certain amount of money to be invested, I will be able to increase the portfolio by a lot - due to the volume - and even if I have to renew a few times, as .COM prices continue to grow (and I have no doubt they will), it's a safe bet. Plus, retail price range sales of course as you sit on that portfolio and profit during this time.

Perhaps all this makes more sense now with insight into my model. Volume-wise, I register only a tiny fraction of what I'm discovering (budget and time constraints) and I'm always amazed how many of my expiring domains are caught by DC etc. But there's no hard feelings in my model - each sold domain pays for hundreds more (even if sold at discount) and by all means, there's so much fish out there.

( Later edit: I'm currently aiming for names which are at least 2K or more in retail value - have decided that this is the absolute limit from now on, for me at this point. Just a detail. )

I believe if you fine tune your strategy and start buying names you think worth 2k-3k retail, brandable or not, in case you can keep at least the 1.5% overall STR, you already solved your time problem since you don't have to worry about the drop part and loose time with discounting (change price, delisting, recheck names whether or not renew etc) simply auto-renew and possibly sell in future. Avg acquisition cost will be slightly higher though I guess if you keep registering + closeouts more like $14-$15 instead of $9. Not sure however how massive was the boost for your cashflow the discounting and whether this makes you considering to keep this activity for the future. Knowing your name selection on drops will be even easier for you to find some gems at closeouts ( the quality density is slighly higher IMO)

 

[kaposzta]

I believe if you fine tune your strategy and start buying names you think worth 2k-3k retail, brandable or not, in case you can keep at least the 1.5% overall STR, you already solved your time problem since you don't have to worry about the drop part and loose time with discounting (change price, delisting, recheck names whether or not renew etc) simply auto-renew and possibly sell in future. Avg acquisition cost will be slightly higher though I guess if you keep registering + closeouts more like $14-$15 instead of $9. Not sure however how massive was the boost for your cashflow the discounting and whether this makes you considering to keep this activity for the future. Knowing your name selection on drops will be even easier for you to find some gems at closeouts ( the quality density is slighly higher IMO)

Based on my worst case scenario calculations (considering around $8 regfee and renewal fees, around 20% acceptance rate on SH and $1500 average NET sales price, rejected names listed on Afternic/Dan with an expected 1% STR and gross $500 average sales price then dropped after a year), you break even at around 1% STR on SH. So anything above 1% makes you a profit. 1.5% STR for a large portfolio means a large profit.

 

[twiki]

I believe if you fine tune your strategy and start buying names you think worth 2k-3k retail, brandable or not, in case you can keep at least the 1.5% overall STR, you already solved your time problem since you don't have to worry about the drop part and loose time with discounting (change price, delisting, recheck names whether or not renew etc) simply auto-renew and possibly sell in future. Avg acquisition cost will be slightly higher though I guess if you keep registering + closeouts more like $14-$15 instead of $9. Not sure however how massive was the boost for your cashflow the discounting and whether this makes you considering to keep this activity for the future. Knowing your name selection on drops will be even easier for you to find some gems at closeouts ( the quality density is slighly higher IMO)

I was going in this direction anyway, you are correct in this calculation. I mean even before SH and starting dipping in brandables.

The trick is indeed in buying better quality names. That's above 2k, and you are correct. The calculation also passes my check, if priced correctly there should be an 1.5% STR.

At this point however, not all my names fall in this category. Many I have were destined to be 1k-ish. Those would not pass this and they are the ones I'm dropping.

Discounting has its pros and cons. If you hold many XXX range or 1k, you have to do this as you need a far better STR to get profit. But on the other hand, segmenting names becomes difficult if there are lots of them. Once again, fewer names but with higher quality (and pricing) seem to be the solution.

It's hard to compute STR overall though. For my brandables at SH, I have little doubt on the 1.5% STR. Will be that or above that. But on the other hand Afternic has been scary lately because I've mostly sold my hand regs (Metaverse etc) rather than the higher quality drops and closeouts. So.... will see about everything during this year.

 

[twiki]

Based on my worst case scenario calculations (considering around $8 regfee and renewal fees, around 20% acceptance rate on SH and $1500 average NET sales price, rejected names listed on Afternic/Dan with an expected 1% STR and gross $500 average sales price then dropped after a year), you break even at around 1% STR on SH. So anything above 1% makes you a profit. 1.5% STR for a large portfolio means a large profit.

If you filter the names correctly then yes. Your worst case calculation stands as profitable.

At this time I'm still holding a mixed bag, but in 4-5 months from now on the lower tier will be dropped, as recently I've stopped registering anything of that nature.

Will still discount some, those I don't intend to renew perhaps but in the future probably not.

I've observed that some buyers wait until the last minute, then precisely couple days before expiry they buy desperately as they've been waiting for months. And I've pretty much figured why:

There are only 2 avenues at that point, 1) either the name will be renewed and it's another year to wait pointlessly, or 2) the name will be dropped and in this case it will be DC if of any good and then put at auction etc. Chances are they don't get it. So they rush to buy.

Therefore with names of good enough value, discounting is pointless, you keep the price until the last day then you can either let expire OR auto renew depending on the quality of the name. That's how you squeeze most from them. So basically retail pricing and that's it.

My model has been failing or so in the last year on those that fallback to XXX range, there are not enough sales there, unlike in the past. To me there is a shift in the market where tech and finance goes 4-5 fig (up) but everyday domains are under pricing pressure (down) and therefore the money isn't there anymore. It used to be.

 

[kaposzta]

If you filter the names correctly then yes. Your worst case calculation stands as profitable.

At this time I'm still holding a mixed bag, but in 4-5 months from now on the lower tier will be dropped, as recently I've stopped registering anything of that nature.

Will still discount some, those I don't intend to renew perhaps but in the future probably not.

I've observed that some buyers wait until the last minute, then precisely couple days before expiry they buy desperately as they've been waiting for months. And I've pretty much figured why:

There are only 2 avenues at that point, 1) either the name will be renewed and it's another year to wait pointlessly, or 2) the name will be dropped and in this case it will be DC if of any good and then put at auction etc. Chances are they don't get it. So they rush to buy.

Therefore with names of good enough value, discounting is pointless, you keep the price until the last day then you can either let expire OR auto renew depending on the quality of the name. That's how you squeeze most from them. So basically retail pricing and that's it.

My model has been failing or so in the last year on those that fallback to XXX range, there are not enough sales there, unlike in the past. To me there is a shift in the market where tech and finance goes 4-5 fig (up) but everyday domains are under pricing pressure (down) and therefore the money isn't there anymore. It used to be.

"discounting is pointless": another great advice, thank you, I'll try not to discount my names

"To me there is a shift in the market where tech and finance goes 4-5 fig (up) but everyday domains are under pricing pressure (down) and therefore the money isn't there anymore." From one point of view this is good news. We can stop registering tons of "okay" or "maybe-this-will-sell-but-I'm-not-so-sure" names, saving a lot of time. We can rather focus on the better names and increase prices. Thank you for sharing this observation, I'll also try to modify my business model a bit.

 

[Recons.Com]

My approach is simpler:

- Buy names that would make a great name for a company, personal brand, product, service etc. in .com
- Set a fair price, list, have clean lander. Fair price for those names in 95% of cases is in 1500-3000 range. If a fair price for a name is $xxx, then it is probably not a great name for the above point and not worth registering.
- Keep renewing and forget about it, thus not requiring any additional admin work.

 

[twiki]

My approach is simpler:

- Buy names that would make a great name for a company, personal brand, product, service etc. in .com
- Set a fair price, list, have clean lander. Fair price for those names in 95% of cases is in 1500-3000 range. If a fair price for a name is $xxx, then it is probably not a great name for the above point and not worth registering.
- Keep renewing and forget about it, thus not requiring any additional admin work.

Makes a lot of sense.

 

[zomainhacks]

My model has been failing or so in the last year on those that fallback to XXX range, there are not enough sales there, unlike in the past. To me there is a shift in the market where tech and finance goes 4-5 fig (up) but everyday domains are under pricing pressure (down) and therefore the money isn't there anymore. It used to be.

Do you think this is also demand related or only due to the offer side (higher competition)?

 

[twiki]

Do you think this is also demand related or only due to the offer side (higher competition)?

I believe there is a shift in demand. The low end buyers have probably become much more conscious with the names they buy. Or they just handreg some random stuff.

There's also some .com erosion due to .xyz, I think. But not that it would really damage .com demand, perhaps only in the lower value range.

On the other hand, in the top tier prices and demand is increased. Probably any domain with a correctly applied retail price above $2-3K is in a better position right now than in previous years.

 

[okaydomains]

With so many names that you own, how do you track if one of your names is not missing on Afternic Listing?

I keep missing names from Afternic, it is frustrating. Just for no reason, a name is there in one backup and lost in the next. I do a check from time to time, but that is one reason I stopped using AN landers

Not OP, but I created a PHP script that pulls in all my names via Dynadot and Namecheap APIs. It also knows how to parse an Afternic export file (which is just a CSV).

Then its just a matter of comparing the two lists (names in my accounts vs those listed on Afternic) and printing the unlisted names out.

Before I implemented this I was having a very difficult time making sure all my names were listed. 5% or so would slip through the cracks. This is especially so because often I have to contact afternic to delist a name from another account before I can add it, and the it becomes easy to forget to add it later.

I don't think its possible to effectively manage a large portfolio (2k+ names) without automation. Google Sheets got me a long way, but I needed to move into scripting for more complicated things (e.g., looking up nameservers and expiration dates).