Mike Mann makes hefty ROI on some of his domains. But does he profit?

[Arpit131]

When looking at some of the sales by ace domain investor Mike Mann, one can easily assume that he is making a fortune, selling domains at $$$$$ which he acquired for $$ or $$$.

But wait...
There is more to the story!
He owns 267,516 domain, which if multiplied by an average renewal of $8 is $2,140,128. That is how much he pays in renewals every year.

Andrei does a fantastic analysis and draws a useful conclusion to take back with you.

Check out the article

 

[JB Lions]

Andrei does a fantastic analysis and draws a useful conclusion to take back with you.

It wasn't fantastic at all, it was misinformed.

 

[deflee79]

I would certainly think if he wasn't profitable he wouldn't be in the business of domain sales.

 

[cmdomains]

How about the monetization of these 200k+ domains. I wouldn't think a business man like him would be too lazy not to work on atleast 50% of them while waiting for a domain buyer.

 

[SpareDomains]

All depends on quality as a 500 .com portfolio only runs ya around $350/month to renew so only 1 sale a month outta 500 can bring ya into profit zone. I've trimmed down a little over the years as have enough aged .coms in the vault so rare I buy these days except for good deals or for developed sites. So from my personal experience no problem turning profit outta 500-1000 quality .coms each month. Can it be done on a 267k level guess that depends if the quality is still there or since grabbing so many domains as he's bought almost 15k in one day before does quantity begin to trump quality.

 

[N-A]

All of Mike's domains are parked with sales pages on DomainMarket (even his $2,000,000 domain). Yes, he had less than the $52,000 necessary to run his empire this week; but, he won't go bankrupt.

One huge factor that was overlooked in this is the fact that he has (tens of) thousands of domains priced at a $500 BIN, and many more not priced that he may be willing to sell for $500 if contacted. How many of those do you think sell daily, weekly, and monthly, and go overlooked, accounting for the $52,000 necessary?

This post is just full of a bunch of wild guesses and doesn't even touch the surface of publicly available information; just applying what he tweets on major sales.

 

[equity78]

All of Mike's domains are parked with sales pages on DomainMarket (even his $2,000,000 domain). Yes, he had less than the $52,000 necessary to run his empire this week; but, he won't go bankrupt.

One huge factor that was overlooked in this is the fact that he has (tens of) thousands of domains priced at a $500 BIN, and many more not priced that he may be willing to sell for $500 if contacted. How many of those do you think sell daily, weekly, and monthly, and go overlooked, accounting for the $52,000 necessary?

This post is just full of a bunch of wild guesses and doesn't even touch the surface of publicly available information; just applying what he tweets on major sales.

You make a good point David, and it is what we see all the time, people write stuff based on not having a full picture or insight from the site owner, there are so many unknown variables, it makes the conversation nothing but speculation, which can be fun, but there is nothing concrete on how the business runs.

 

[N-A]

You make a good point David, and it is what we see all the time, people write stuff based on not having a full picture or insight from the site owner, there are so many unknown variables, it makes the conversation nothing but speculation, which can be fun, but there is nothing concrete on how the business runs.

I too made generalizations and thought of editing it.

One thing is a fact though, here is one requirement for becoming an Inc 5000 in 2015:

Have generated at least $2 million in revenue in 2014;

2012 #292 with a reported revenue of $2.1m. I can speculate that they broke even that year, or carried most of their losses (renewals) in 2011, generating massive profits for 2012.

Who knows? Only Mann.