NameSilo

Offer to purchase my portfolio

Labeled as discuss in Domain Buying and Selling Discussion started by JudgeMind, Jan 11, 2019.

Replies:
24
Views:
944

  1. JudgeMind

    JudgeMind Top Member PRO VIP Trusted Contest Holder

    Posts:
    5,349
    Likes Received:
    11,784
    This post directly relates to another thread I’ve created recently:

    https://www.namepros.com/threads/would-you-sell-your-entire-portfolio-how-much.1118312/#post-7059532

    Recently I had another Domain investor approach me who wanted to purchase my entire portfolio. It is a legit offer and I’ve spoke to them on the phone about the deal. My portfolio currently consists of 1433 domain names.

    Their offer to purchase the portfolio was $95,000 usd. Typically I sell my common domains for $350-$4000 each. But I have some other domain names I value at $xx,xxx

    When I went through my portfolio and looked at what I could reasonably sell each domain for the number at the end was far higher than their offer of $95,000. I keep track of what my acquisition costs and any renewal costs were as well. This number was far less than their offer. So as a whole I stood to profit largely on the deal. After a lot of thought and back and forth I opted not to sell at 95,000.

    The deciding factors:

    - At $95,000 I’d be selling each domain at just $66. I thought to myself, when do I ever sell any domain that cheap. The answer was NEVER.

    - the time and energy and investment I’ve made to curate my portfolio is worth more to me then the profit to be had.

    - the time and investment to rebuild my portfolio

    - the overall value I see my portfolio at if I could sell each name for the pricing I typically sell at was FAR higher then the offer.

    - I took a close look at my sales over the past three years. The gross number for each year was really close to the offer, so I decided their offer would have to cover at least three years of my gross revenue which would put the number above $3xx,xxx

    So I did counter their offer and gave detailed explanations why I require the price I’m countering at. The deal isn’t completely dead but it’s in limbo, waiting for their response.

    Because the deal isn’t completely dead I’m not going to post here what I’d sell for, but if you read the above you’d be able to determine yourself what my minimum is I’d sell my portfolio for!
     
    Last edited: Jan 11, 2019
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Coinking

    Coinking Weedimo.com

    Posts:
    2,323
    Likes Received:
    1,239
    I have 300 Domains and my asking price just $50,000
     
  3. CJ6

    CJ6 This BlTCH is hooked on NP. Gotta have it. VIP

    Posts:
    2,506
    Likes Received:
    2,759
    I'd be willing to sell my portfolio if someone asks me. ;)
    Actually, I have 2 portfolios. Mostly cannabis domains in one, extended reality domains on another (long term hold), and a few misc domains.

    If a random person out of the blue contacts me, chances are I wouldn't sell to them. If someone contacts me here on NP or works for a major domain company (like GoDaddy), I would consider it a more serious offer.
     
    Last edited: Jan 11, 2019
  4. Furquah

    Furquah Skipper VIP

    Posts:
    2,872
    Likes Received:
    1,888
    @JudgeMind fair decision, I always choose to sell some of my names (Mostly Brandpa/BB Names) when I need money or I just want cash flow.
     
  5. xynames

    xynames XYNames.com PRO VIP

    Posts:
    2,438
    Likes Received:
    3,949
     
  6. alcy

    alcy Active Member VIP

    Posts:
    15,194
    Likes Received:
    22,419
    just wondering...why u think they approached u vs many other investors? is it someone u know? or there are just many names in yer folio they are interested in? or they just go round buying many folios?

    as for yer dilema..well.. maybe u can consider keeping few names yer particularly fond of...then sell rest for 95k... it does not mean the names u would keep would be his faves too...
     
  7. JudgeMind

    JudgeMind Top Member PRO VIP Trusted Contest Holder

    Posts:
    5,349
    Likes Received:
    11,784
    This is a buyer I’ve sold to a few times in the past
     
  8. creataweb

    creataweb Top Member VIP ★★★★★★★★★★

    Posts:
    5,468
    Likes Received:
    6,352
    If you don't mind the work to start over, sure take it. If you enjoy it that is.
     
  9. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

    Posts:
    4,229
    Likes Received:
    8,336
    If you take the deal and start again....

    That's like trading in the wife for a younger model. :xf.laugh::xf.laugh:

    I love my wife too much

    HeHe.... and that goes right hand in hand with my wife saying I'm married to my job. :xf.smile:
     
  10. wwwweb

    wwwweb Top Member VIP

    Posts:
    8,494
    Likes Received:
    6,743
    As would be the case the younger one would end up costing you a lot more, so would be building a new portfolio present day with all the bots, and automation not much quality gets thru the cracks anymore.
     
  11. biggie

    biggie Top Member VIP ★★★★★★★★★★

    Posts:
    8,950
    Likes Received:
    7,622
    Hi

    for 1433 domain names, with average renewal cost of $10 per, that would be $14k per year..... if all due same period.

    soooo, whether you sell for 95k or not, somebody will have to come up with renewal fee for that portfolio sooner or later.

    i'm sure you got that covered, but that's also a consideration for the portfolio buyer.

    if you have some ppc coming in and records of your past sales, then it may help to compile and include that, prior to submitting your portfolio for review.

    you want to illustrate:
    the likelihood that more sales from the portfolio will happen,
    which could be conveyed by the including the volume of sales, the names sold and their prices.

    as opposed to one with few to no recent sales and not having any residual income coming in, to sustain it.

    just saying....


    imo...
     
  12. garptrader

    garptrader Top Member VIP ★★★★★★★★★★

    Posts:
    2,643
    Likes Received:
    2,653
    Ten years ago the rule of thumb was that domain portfolios turned around 1-2% annually. Parking earnings have declined substantially over the last 10-12 years so many domainers have to rely on sales to cover renewals. It is my view that the proliferation of TLDs has lowered portfolio turn and median sales prices for the average domainer. End users have many options including various "free" social media platforms. Regardless, any business can be sold at a multiple of revenue or cash flow. So one could ask for a portfolio with a track record of regular inquiries and sales, what is a fair multiple of cash flow (sales + parking income less renewals & marketing expenses)?
     
  13. urlurl

    urlurl Active Member VIP

    Posts:
    2,861
    Likes Received:
    5,496
    i might not sell my entire portfolio, but i may be tempted to sell 150-200 (their pick) for $1k+/- each

    like playing the game too much to sell all
     
  14. xynames

    xynames XYNames.com PRO VIP

    Posts:
    2,438
    Likes Received:
    3,949
    <<i may be tempted to sell 150-200 (their pick) for $1k+/- >>

    That tells me that you’d probably sell ten of them for 1k each too. Or one.

    These guys trying to buy entire portfolios won’t pay more than 100 each if that. (And they want to pay 100 each only for domains they are pretty sure they’ll be able to sell for 5-10x more.) So unless you’ll say
    <<i may be tempted to sell 150-200 (their pick) for $100+/->>
    you’d better go back to whatever it is you like doing.
     
    Last edited: Jan 12, 2019
  15. johname

    johname Planet Futbol VIP ★★★★★★★★★★

    Posts:
    34,350
    Likes Received:
    53,486
    Another member had to sign a no compete when selling his portfolio, so be on the lookout for that. Which also would be another reason to ask a higher price.


    Also, the last thing they want to do is tip your hand to the domains they really want. So don't be surprised at them not wanting to do the pick em approach.
     
  16. singhhooda

    singhhooda Established Member

    Posts:
    694
    Likes Received:
    608
    Sorry if I understood it wrong.
    Do you mean your yearly gross sale is close to $95K?
     
  17. Recons.Com

    Recons.Com Active Member VIP

    Posts:
    5,084
    Likes Received:
    9,395
    I have around 2500 .coms and it would cost me around $100/name and would take couple of years at least to build similar quality portfolio, that is not including cost of labor, which, in my case, is high. So, for names that I am not developing, I'd consider $150-200/name range.
     
  18. JudgeMind

    JudgeMind Top Member PRO VIP Trusted Contest Holder

    Posts:
    5,349
    Likes Received:
    11,784
    Yes or more
     
  19. Ram corbin

    Ram corbin Established Member

    Posts:
    512
    Likes Received:
    507
    If you don’t mind answering. What particular niche is your portfolio? Tech, 4L, crypto, vr etc
     
  20. lock

    lock Traffic.tools VIP

    Posts:
    2,022
    Likes Received:
    1,956
    Every domainer has their sell out price but a portfolio only has value as a whole when domains are of same niche and your offering the entire industry. The best thing to do is just pick out the stand outs to sell.
     
    Last edited: Jan 14, 2019 at 7:17 AM
  21. JudgeMind

    JudgeMind Top Member PRO VIP Trusted Contest Holder

    Posts:
    5,349
    Likes Received:
    11,784
    It covers all sorts of verticals
     
  22. lock

    lock Traffic.tools VIP

    Posts:
    2,022
    Likes Received:
    1,956
    You do have a good portfolio but there is a lot of work to sell it.
    Just chill and take your time I will tell you your not going to be stuck with a load of names that no one else wants.
     
  23. JudgeMind

    JudgeMind Top Member PRO VIP Trusted Contest Holder

    Posts:
    5,349
    Likes Received:
    11,784
    Thanks, I do quite well. I have no problem selling the names nor am I concerned I own names that nobody wants
     
  24. lock

    lock Traffic.tools VIP

    Posts:
    2,022
    Likes Received:
    1,956
    Ok then more a relaxed approach to OMG someone offered me buckets of money for the lot. I have had it happen and kind of wish I took it up at time as probably dropped 90% of what i was holding at the time. I was a multiple niche buyer at time . Some of the niches i went for faded. The annoying thing is i have had some of the best of the trends holding out watching as inferior names go for money then the niche dies. If you can just pick out your best sentimentals and create a new pile your willing to sell. You might find yourself in a better position to use your new budget and your buyer might just like that list to.
     
    Last edited: Jan 14, 2019 at 12:37 PM
  25. DN_Hunter

    DN_Hunter Active Member VIP ★★★★★★★★★★

    Posts:
    1,015
    Likes Received:
    434
    I just noticed this thread. I actually replied to your related thread asking about the choice to sell an entire portfolio.

    Coincidentally, our portfolios are about the same number of domain names. And based on my my own figures regarding gross sales vs. expenses, I also chose the option to NOT sell at $100,000

    Of course, I believe everything has a price. So if a strong offer came along I would certainly consider it. The Breakdown of my portfolio is in your other thread.

    My thought is that a buyer could reasonably recoup $100,000 on just the sale of one or a few names (example 20 names at $5K each).

    That would leave about 1,480 remaining names in the portfolio - pure profit and the buyer just has to hold them until expiration and then let them drop (or renew the names they want to keep). Whatever they sell is profit over their original purchase price...

    So that is why I would not to sell at $100K...
     
    Last edited: Jan 14, 2019 at 1:27 PM

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
Topics / Tags:

Share This Page

  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...