Is this a good strategy?

[SchwimmerP]

Hi. For more than 10 years, maybe once a or twice every year for 3-4 days, I enjoy browsing expireddomains.net. This is an odd intermittent hobby for me. But this time, I am enjoying more than I used to. What I do is, I browse expireddomains.net, with a filter I am happy with and my watchlist is over 60 domains which I think have potential. I purchased 5 domains so far by the way. 4 of them are stupid purchases, so let's forget about them, but one I am confident will make a good profit.

Reading through np, I learned that buying and sitting on a domain to sell it 10x or more profit is a waiting game. And everybody says that selling %1-2 of your portfolio is the way to go. But
1. I don't have the patiance
2. This will probably kill the fun part for me

So, instead of registering an expired domain which I think have potential (let's say estibot 500 and godaddy appraises 1400usd) for 7 bucks and wait 2-3 years to sell it for 100-200-500, isn't it better to get 10 domains with same appraisals, and sell them on auctions for 15-20 bucks? Than with 20 domains, and so on.

Will my sales still be low/slow going through this road? Thanks.

 

[karmaco]

Stats, estibot and GoDaddy valuations don’t guarantee sales. The only way to get sales is to know how to spot good domains without any stats just by looking at it.

Since you have made it clear this is not a serious thing to you it’s unlikely you will take the time to gain additional name honing skills.

This is not get rich quick with minimal effort. Its a long game with much effort.

With that in mind, if you just want to sell what you allready have the lower the price is the better the chance. If the name is total garbage even that won’t help.

 

[E-Promote]

Best not to put much faith (if any) in any of the automated appraisal services out there. Nothing replaces the experienced human brain. As far as buying more domains with the intent to sell for very little profit, you will soon feel the grind and if you are going to grind better to use your grind time researching for better domains to buy.

 

[SchwimmerP]

Best not to put much faith (if any) in any of the automated appraisal services out there.

I don't. I just mentioned that as a reference. I add domains to watchlist without appraising actually.

 

[korganian]

It's not the sales that will be slow going. It's that it took you ten years to find one domain that you are confident you can make a profit on and you are thinking you can find an unlimited number of domains and sell every one of them quickly for a tiny profit. That's not only unrealistic, it also values you time at near zero.

 

[Bob Hawkes]

isn't it better to get 10 domains with same appraisals, and sell them on auctions for 15-20 bucks? Than with 20 domains, and so on.

If I understand, what you are proposing is that rather than wait for a possible retail buyer, with a STR of 1 or possibly 2% per year per domain name, your plan is to attempt to almost immediately sell wholesale, being happy with something like a 2x return on your investment. There is nothing per se wrong with that strategy, in my opinion. However, you should not automatically assume you can find buyers, even at $20, for even decent domain names. Remember that the names that reach expiry and are available for hand registration have already been passed over in expiry auctions and in closeouts (for the major extensions at least).

If you are keen on this, what I would propose is to do a trial run. Register a modest number, say 10 or so, after being really careful with research and tweaking filters and watching what is selling wholesale (most NameBio listed sales are wholesale so you have a large sample of sales). Then see if indeed you can sell enough of them at a 2x multiple to make it worthwhile.

There is a (somewhat illogical in my opinion) bias amongst many domain investors against anything other than expired/expiring domain names. The same domain name that would sell in an expired auction at $200 may not get any buyers at $20 if being sold by a domainer. It is frustrating for those who sell wholesale.

I am not negative on your strategy. A good way to get better at domain investing is to find names that will appeal to experienced domain investors. I just urge you to see if it works in practice with a limited initial investment.

Anyway, if you do conduct a trial, please let us know in this discussion thread how it works out.

Best wishes,

Bob

 

[DigiNames]

This was basically the strategy I came up with when I first started “seriously” domaining many years ago. I enjoyed the hunt and I was pretty good at finding names, but ultimately it was unrealistic to have a 100% sell-through rate and double my money each time. You spend a lot of time, and end up with a bunch of names that you can’t sell for the quick profit you had hoped. In my case, that plan fell apart pretty quickly.

I’ve come to see that patience is a critical element to financial success in domaining.

 

[SchwimmerP]

Thanks for all the answers.