Make money domaining with no domains?

[VURG]

This is just an idea for fixed price domains and I am interested to see what people think.

A large percentage of domainers with good domains are happy to pay 20% commission on a sale if they know that this will give them a good chance of a sale. (Paying 20% on a $3000 sale is better than paying 7% on a $1000 sale)

What if you search through a database of domains for sale and get a 10% commission for refering the domains that you considered to be good value for money. For domainers with good reputations and a good history of picking bargains, there could be a lot of money in the referral commission.

This would be a way of making money domaining without domains and if you keep referring $X,XXX+ sales then it could be good money for many domainers with no financial risk!

For domain investors with a lot of money, imagine if you had a source who picked out the gems for you and saved you a lot of time and risk. A high quality CVCV.com is available for only $3,000 and you are one of the first people to learn about it because of your great source. Your source is excited about the $300 they made but your domain is worth more than $5,000 and you got a bargain.

I just think that this is a great idea for time-poor/asset-rich investors and asset-poor/time-rich domainers to benefit from each others strengths by having a service provider that ensures that the domainers can get a good commission for referring bargains in the providers marketplace. This helps the domainer, the investor, the service provider and the domain owner.

Opinions.

 

[DotCN]

It's a good idea.

I would like to pay more than 20% for a good sale :hehe:

 

[htmlindex]

I like the idea as well. Basically it's exactly the same as a buyers agent in real estate. The only problem I see is for the person brokering the name for the buyer where the "broker" finds some domains, refers it to the buyer, but there are a number of bidders & the buyer doesn't get the name, therefore the broker gets $0 for the work. He/She could refer many names to the buyer but they don't win the name & they get $0. Or if the "broker" refers the name to the buyer & the buyer doesn't buy it but registers it in a family or friends name therefore bypassing the commissions.

 

[jacal1]

I think there is a member who does this - Alex I think, with the spinning bear avatar. He makes out very well if memory serves.

 

[-REECE-]

I pay people anywhere from low $X to $XXX to domainers that tip me off on domains I eventually purchase. It's a great service for both the buyer and the broker. I have no problem giving someone a commission when they're getting me a domain for 30-40-50% off what I otherwise might have been required to pay for it.

It'd be great to have this information and service more readily available, rather than the way it currently is now. I know of 1 domainer here who turned an ~ $100 commission from me into > $1000 inside of a couple months with LLLL.coms, using not a single penny of his own money, so there certainly is money to be made

 

[bocajohnh]

This is a great idea, especially for someone who has the time to look at the lists (or is already doing so), and who has a good eye for a good name and a great price. As Reece stated, the right buyer will pay handsomely for good tips. IMO, the key is to deliver QUALITY names and deals, not quantity.

Also, if you plowed your profits into creating tools that allow you to find and filter these deals faster, then your dollars per hour spent goes up, increasing your profitability.

 

[john645]

Would be cool to see a website site made. Could work sort fo liek clickbank where you get a tracking/referral url and act as an affiliate.

 

[p_campos]

That´s a great idea!

Imagine you have someone to pick the bargains living in the other side of the world.
While you are sleeping you would have someone working for you.

24h a day always looking for steals!

 

[-REECE-]

Exactly

Some of the younger domainers don't have enough money to seriously get into the domaining business, but imagine helping an experienced domainer find deals while he's sleeping and him giving you say 10-20% of the profits he makes on successful flips...

Quite honestly, I think most cash strapped younger domainers would be better off doing this than trying to make it in the domain world with a budget of less than 100 bucks. I hear it's been done, but you'd have so much better odds if you made a few thousand by doing some brokering.

One thing I don't have the time for myself but that many people find very profitable is whoising -- sending out email after email to owners of a certain type of domain name. Imagine sending out 200 offers to purchase people's quad premium LLLL.coms for $300 each day and telling them to contact your business partner if interested... At the end of the month you've sent out 6000 emails. What are the chances that at least a couple people would be willing to sell at this price which is about $200-$500 under the going rate on most quad premium LLLL.coms? I'd say fairly good. I don't think I'd be the only one more than happy to give out a percentage of my profits to someone who can help me build my quad premium collection offering such a service.

That´s a great idea!

Imagine you have someone to pick the bargains living in the other side of the world.
While you are sleeping you would have someone working for you.

24h a day always looking for steals!

 

[evilopinions]

This is exactly what I have been doing for quite a while now..

I have a few fellow friends at namepros who are intrested in generics and I try and find some nice generics for them.. They tell me a budget / each name or a general pay pattern of how much they will pay for a domain..If I get a good domain they will tell me they are willing to pay XXX for that domain...If I can get that domain cheaper I can keep the difference .In addition to these I get paid a small transaction fee of 50 bucks/each domain bought...

I usually end up finding about 10-12 domains a month so this turns out to be a good income speacially if you get a seller who doesnt know the value of his own domain...Sometimes the difference comes out in XXXX...

 

[VURG]

Thanks for the feedback. Some interesting insight!

 

[Alex]

I think there is a member who does this - Alex I think, with the spinning bear avatar. He makes out very well if memory serves.

I do this occasionally when I find a domain out of my budget, but had little success with it, as I mainly concentrate to purchase domains myself.

There is a must read article of Sahar Sarid about this though and I advise everybody to take a look at it:
http://www.conceptualist.com/2007/09/14/how-to-start-in-the-domain-business-without-funding/

1. Identify potential investors - Quite easy. Log on to DNJournal.com weekly sales report data and see who are the active buyers. It is easy to find those who spend, either through the WHOIS or through the “Contact Us” on a given domain.

2. Relate your intentions - Introduce yourself, get to know each other, create comfort, relate your intentions (finding deals for them)

3. Preferences - During discussion, find out their preferences, simply by asking what kind of domains or deals they are looking for.

4. Negotiate commission - The investor has nothing to lose as you are not getting paid until you found a deal he likes. Basically, no risk and negotiating an agreed commission of 10%-20% should not be a problem.

5. Go hunting - The beauty of this is as you find deals and relate to your investor, and he/they decline them, ask “why”. This is most important as you want to understand how they think, what makes a deal a good deal. This is the most important part as it is knowledge that creates wealth, not money.
(One of the quotes that irritates me more then anything is “It takes money to make money”. It really isn’t true and it is one of the most limited beliefs in the world which I believe holds hundreds of millions of people back from making their dream life come true.)

As you save few dollars from commissions you will be able to pick and choose what to pass to investors and what to keep. You will be able to create momentum.

Important point to remember - You can either work for one exclusive investor or have a group of potential investors. I personally like the idea of a group better but It can work either way.

Side bonus: This formula isn’t just for domains but is about making it in the world without funding. You can go to a shoe store and offer the store owner to buy inventory for him, and it will work exactly the same.

As a sidenote, it is better to start like this, when you have no funding but find persons you can really really trust. Mainly because some people may not be interested in adult names when you found a great bargain adult domain, and you have to trust that person that he will not steal your idea and skip you out of the deal. And always talk about the commissions first.

Wish I would have put more time in this, but I am too busy now with grabbing some funds for a development project and frankly I have no time for domaining. Hope I will be back in March.

As another note, I have two people with 0 budget that search for bargains for me (my max budget per name is $6k), and I have two people I search names for (their budget is $50k respectively unlimited). But I have been busy with other projects lately, and was not able to find any deals.

 

[xXDanteXx]

I was about to post such a thread, basically i have been contacting some generic and good domain owners, and have had a few responses with them about their selling price and found out some good deals which i might myself grab if I had the money.

For example, I have contacted this generic domain owner and he is looking for offers in the $75,000 range as per my knowledge the domain has an easy potential of selling in six figures (241 million results for the keyword in google).

Now the question I would like to ask is.
1) How do I contact a domain name investor who has that much cash?
2) How do I make sure he wont bypass me and directly deal with the domain owner by contacting the person in the whois information or in other words how do I make sure I get paid?

Any help would be appreciated.