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Is domaining worth it?

Labeled as discuss in General Domain Discussion, started by saiif2014, Apr 28, 2016

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  1. saiif2014

    saiif2014 Established Member

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    hi
    is domainig business worth it ? i mean the poeple who domaing for more than 5 years did you se great results ? and if you invested this 5 or 10 years in other business like website building or any other business i think you will get 10 times more than you get by domaining , am i right ? the money you got from this years of domaining it was worth all this time or not ?
     
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  2. capiche

    capiche Top Contributor VIP ★★★★★★★★★★

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    Domaining is like anything else. Most of us here do it because we enjoy it.

    If you don't enjoy doing it, you're not likely to be that successful at it. It does take a lot of time and careful research. But if you read, ask questions and follow advice... it is well worth it.
     
  3. Beezy

    Beezy Top Contributor VIP

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    Like any investment, do your due diligence.

    Short answer from me - worth it.

    Content creation is EXPENSIVE so unless you have funding, your theory on website building is probably way off. Also, in 2012 you would've made an app for your website ($35k). In 2014-2015 you redid the entire design to make it responsive ($500 on craigslist guy that just edits a wordpress theme. $5k-$15k+ for a custom solution).
     
  4. garptrader

    garptrader Top Contributor VIP ★★★★★★★★★★

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    Ten years in and results thus far have been disappointing. While development has its own challenges, there are clearly more individuals who make a living from website design and development than there are who make a living from domain names. When you are in high school, counselors might advise you to pursue certain careers - medicine, law, business, teaching, etc. Students with a degree in ___ likely have a pretty good chance (not guaranteed) of finding a job in that career and making a living from it - at least for a period of years. The percentage of domain investors who make a living from buying and selling domains is small and the percentage who lose money in domaining is large. Most of the individuals who make a living from buying and selling domains entered the space fifteen years ago or more. I seriously doubt there are more than a handful of domain investors who are making a living buying and selling new TLDs.
     
  5. inforg

    inforg Established Member

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    Domaining is like most businesses - most people will fail in the first year or two. I also did websites, affiliate marketing, e-commerce, and still like to play around when I have time.

    Since it is mostly a hobby for me, domaining allows me to just check out for 6 months or more without everything falling apart. I pay my renewals, answer emails and collect sales. With websites, 6 months of neglect means a lot of work. I don't have the time to keep up websites.

    If I were going to do any of this full time, I'd take a mixed approach. It is nice to have steadier website income since domain sales can be feast or famine.
     
  6. mhdoc

    mhdoc Top Contributor VIP ★★★★★★★★★★

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    That's a little pessimistic I think.

    I was in a bit of a panic when Google announced sites had to be responsive or they wouldn't show your pages to mobile visitors. I have an old site with hundred of pages, thousands of comments, running on hope & prayer. It also generates a steady income. I had blocked out a month to rebuild it when I came across a plugin called WPtouch that intercepts page requests from mobile devices and reformats the page to fit. $75 at the time and it worked like a charm. Mobile traffic is now over 40% of the total and climbing.

    I just saw the Google page-level ads announcement and it looks to me like that will make it easier to add AdSense to niche mobile ready sites. It wouldn't have to work very well to improve on the parking incomes I see being reported.
     
  7. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    The truth is the vast majority of domain investors lose money. The minority actually make money, and of that minority a much smaller minority makes a living from it.

    It is harder than ever as there is more supply with new extensions and more competition for quality .COM.

    If you are willing to put in the time and effort, make smart decisions, and learn daily then it can be worth it.
    There is no shortcut.

    The reality though is you need a healthy budget to reach a tipping point. The typical sales rate is 1-2% a year (for domains priced at reasonable end user prices). You need large ROI on the domains that do sell to cover the ones that don't.

    Is it worth it? Maybe.

    Brad
     
  8. capiche

    capiche Top Contributor VIP ★★★★★★★★★★

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    As an add-on to my statement above, I have a hand-reg from last year just go in escrow for $1200.

    Not huge money, but I'm mostly a part-timer, so considering the amount of time I've put in -vs- the money I've made over the years.. It has been worth it for me.

    The one thing that doesn't change whether you're a hobbyist/part-timer/full-timer is the learning curve in the beginning. That is where most of the real time (and potentially money) is spent. Trying to avoid taking that initial time to learn is the reason most domainers fail.
     
  9. Silentptnr

    Silentptnr David George VIP

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    I love the domain industry. I enjoy flipping domains, managing my domains, and getting better and better at regularly making sales. I meet really bright people and love the technology aspects of it.

    I do follow a business plan that includes a web presence, networking, and sales goals.

    I buy domains as small investments. I strongly believe in the future of domains as long term investments. I stay on a budget and know up front what my renewals are. My portfolio stays around 300-400 domains. I have to make one $x,xxx sales a year to pay renewals and expenses. The rest is pretty much profit. I usually make more than one sale.

    I feel really good about the portfolio I have collected, and as someone already said, it's about passion and enjoyment.

    I couldn't live on domaining alone yet, but I never got involved to live on it. When and if that happens, it would be like heaven.
     
  10. Silentptnr

    Silentptnr David George VIP

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    And let me add. I have a friend that works a part-time job and makes less than I make domaining on a weekly basis.

    I do think that people underestimate the complexity with domaining and all that it encompasses.
     
  11. SBS66

    SBS66 Established Member

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    I think a dose of reality regarding domaining or anything else is healthy. As @inforg said, domaining is like any business. Business don't wait for people to come knocking on their doors, they go out and get the sale. Being a lurker on here for a bit and then joining, there seems to be a lot of us newbies that read the stories of the $X,XXX plus sales and think it's easy. I practice full time and have been a lawyer for quite a bit, and I can tell you that it took a lot of crappy cases before I could sign the $X,XXX retainer without batting an eye; it's the same stories from my contemporaries. And that was after the 7 years to become a JD. Personally, I like the quiet of outbound marketing I started doing--no clients with self-created emergencies, and harried hearings. Outbound marketing has become my meditation time, lol.

    As for careers, as mentioned by @garptrader, a law and medical degree costs upward of $100,000. As a new lawyer, with the glut of lawyers still out there, you can expect to earn a whopping $50-60K as an associate, doing all kinds of crappy jobs (even walking the dog for some partner or other) and working upwards of 50 hours. Oh yes, and keep in mind "downsizing" which is now like a wave--feast or famine but out of your control and happens in just about every sector of the economy.

    Compare that to domaining, where your education doesn't have to cost $ except what your time is worth to invest in learning for "free." How much is your time worth? For example: if you can get a domain for $20 on GD and sell to an end-user for $325, it took you 3 hours in the beginning to collect the leads and send out the email, and get paid via PayPal with their 3% (or about $10, assumed). Well then you just earned about $98/hour ($295/3). Even if it took you 4 hours to do that, you're still ahead. Even if you assume minimum of $15/hour you're still ahead.

    Those are just my thoughts. I have been doing outbounds now for about a month. I've had nibbles, but no sales. Am I going to quit? Absolutely not. Mostly because like most every other commenter here, I love whatever it is about domains that we seem to share on this board. Besides, I like the challenge of seeing if I can make something happen. In the meantime, I continue to learn the fine points of this thing, practice and spend time with my family. It's all good.

    Sorry for the long post--must have forgotten I wasn't getting paid like a lawyer :) .
     
  12. Asfas1000

    Asfas1000 Top Contributor VIP

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    Well, that would be true, if you can sell each and every domain you do outbound for.
    If your success rate is 10% (closer to reality) then you earn $9.8 / hour.
     
  13. SBS66

    SBS66 Established Member

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    Yeah,,as opposed to $8.05 working partime at wallmart with little/no benefits. Personally, I'm still trying to see the downside. But it is every person's call.
     
  14. Asfas1000

    Asfas1000 Top Contributor VIP

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    Sadly my calculations were wrong. If my success rate doing outbound is 10% , this means for one sale of $325 I have spent $200 with Godaddy and worked 30 hours. That's $125 profit in 30 hours, or $4/hour.
     
  15. SBS66

    SBS66 Established Member

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    How did you spend $200 with GD? That's not from my example--which is buying for $20 not $200.
     
  16. Asfas1000

    Asfas1000 Top Contributor VIP

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    But you'd have to buy 10 domains for $20 each before you can reach out to end users and make 1 sale.
     
  17. garptrader

    garptrader Top Contributor VIP ★★★★★★★★★★

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    If your success rate is 10% what do you do with the 90% you did not sell? Let them all drop? If you renew them all, what does your hourly rate turn into?

    I once had a domain ZonaFutbol.com (SoccerZone.com in Spanish) which I did multiple campaigns about a year apart on and could not find a buyer. Eventually the domain sold at Godaddy Premium Listings to an Advertising Agency in Miami - an end user I would have never thought to have marketed that name to. I sold too cheap but the point is I knew the domain was a good one and I still am flabbergasted at how ignorant end users are when it comes to appreciating the brand value of a domain name. Perhaps the Spanish market is years behind the US market but I have seen similar results with English domains as well.
     
  18. SBS66

    SBS66 Established Member

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    What? No. You buy 1 domain, and you market that domain. You are not looking for multiple domains for one user (at least I'm not at this stage). You're looking for 1 domain to market to multiple users.
     
  19. SBS66

    SBS66 Established Member

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    I think they are... and ZonaFutbol.com is a great domain.
     
  20. Asfas1000

    Asfas1000 Top Contributor VIP

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    And if it doesn't sell ?

    That's why I'm quoting a 10% success rate for, ie. to sell 1 domain in every 10 outbound campaigns.
     
  21. SBS66

    SBS66 Established Member

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    If it doesn't sell, read @garptrader's post.

    A lot of your success will depend on your domain names. But, for example, on Monday I sent out 43 emails in the morning. For me that is 1 campaign for that name. I usually try to do 50 at one sitting but it was early and I had some place to be. But from that I had a response, still pending. If it doesn't close between now and next week, I'm marketing it again.
     
  22. Asfas1000

    Asfas1000 Top Contributor VIP

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    Garptrader's post is a case, not a rule. A domain may sale or it may not. Sometimes it won't sell despite your best efforts. In my experience it's hard to overcome a 10% success rate for the outbound for second or third tier domains.
     
  23. SBS66

    SBS66 Established Member

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    Okay, then my take from our exchange is:

    1- don't buy second and third tier domains. That is a 100% success in terms of saving money and you can ignore the 10% success rate.

    2- It's a question: what is the success rate for a first tier domain name? Each domain name being unique, I can safely venture that they, too, are just a case and not the rule.

    For the OP, does it sound like they can afford first tier domain names? Because if they can't then they have some thinking to do, I think.
     
  24. Silentptnr

    Silentptnr David George VIP

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    The reason so many domainers say to read, and to wait before buying is that buying sellable domains is an art and is more often learned rather than natural.

    The best buyers are big companies....end users. It took me a long time to gain discipline when buying domains.. To try to stick to domains that the deepest pockets might want.. Names that startups might want.. Names that small businesses might want.

    There is a big difference between domaining like a lottery and domaining as a business owner careful about the bottom line, or a little league ball team versus a tech startup with a real business plan with short and long term objectives.

    Just saying that in domaining, success is about personal goals and failure is not the fault of the domaining opportunity.

    Anyone who is not proud of what they have, should maybe spend more time thinking about what they really want.
     
  25. poweredbyme

    poweredbyme Top Contributor VIP

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    There are more amateurs and newbies in internet based businesses compared to other businesses. Other than this difference, there is no difference. This is only a job. Usually you don't expect fantastic results in business life. You only choose a job and do it. If you do a business for 10 years, it's usually very hard to do a different thing. So it's usually hard to compare. Also you can't use "money" as a measure of success. Because money depends on millions of uncontrolled events. I mean unless you are very lucky you can't make good money in any business.
     

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