Making a living from parked / type-in domains?

[brizzad]

I know some of you guys here earn enough residual income from parked domains and domains with type-in hits. I'd really like to get into this, I've got a great job so saving up is no problem, also, having a nice income and being smart with my money has left me with a good credit score, so I'd even consider a loan getting started.

For those of us interested, how much should one expect to invest? ex: if my personal goal would be $5,000 a month, should I expect to invest 12-24 months income? ($60,000-$120,000)? I know putting exact figures together is impossible since you dont earn the exact amount each month, but is there some sort of formula future investors can use to determine what kind of capital is needed to get started?

Thanks in advance.

 

[Phronesis]

High quality, premium type-in .com domains usually sell for around 8 years revenue. There's a lot of discussion these days as to the 8 year figure being low. So, to make $5,000/month ($60k/year) you'd need around $480,000 in start-up to acquire the kind of portfolio you're talking about (unless of course you manage to find people willing to sell these quality names at a lower multiple).

 

[Malaysia]

8 years revenue..wow.. thats really a lot...

 

[Phronesis]

8 years revenue..wow.. thats really a lot...

It's a lot for a bad domain but not a premium .com (premium being "cars.com, insurance.com, homes.com, etc)

 

[duskdawn]

"Starting from scratch" is my recommendations.
Why do you must start with a portfolio earning $5K/mo? It is easier and safer to invest, for the first time, in some names earning you xxx/mo. And it is a lot more fun to increase your investing capability from the beginning when you start earning more and more .
Of coz, if you are a millionare, I'll just shut up.

 

[brizzad]

Wow.. 8 years. I know when selling developed websites, the rule of thumb for pricing is 10-12 months revenue. I thought it'd be within 2 years of so of that.

duskdawn: i definitely wont try and hit the ground running at $5,000 a month.. I was just wondering how much i should expect to invest over time

 

[Phronesis]

You can still buy names at less than an 8 year multiple, but they won;t be premium. You'll be buying 2 or 3 word .coms or one or 2 word .net / .org. If you're willing to do the work, you can research names that will likely get type in traffic. There are some out there still.

Read this:

www.domaining360.com/parking.html

 

[Falian]

Right now i haven't really learned domaining, so i stick to developed sites. I think thats a better investmetn because you can get a developed site @ 5-6 months revenue. Hit me up if you need a manager :D

 

[Keynes]

There are, of course, risks inherent in the PPC market. With click fraud issues the risks can be pretty high, which might affect PPC rates dramatically. While 8 years on a strong generic is probably a good investment, they aren't nearly as secure as some forms of investment (but hey, nothing is these days.)

 

[gingeman]

If you have a reasonable budget, I would say it is better to have 2 or 3 premium names rather than 100 average ones. I understand what duskdawn is saying- it is enjoyable to have a vested interest in many areas, but I would have to say as a serious investment you will always be better trying to get a smaller number of better names, and optimising their revenue as much as possible (this becomes harder to maintain with larger portfolios).
Kind Regards
Chris

 

[brizzad]

Thanks for all the input and suggestions guys, I'm sure this advice is helping a lot of other newbies out.