Quick Strategy Question

[Trones]

Hey everyone I just joined here, benn interested in domain trading for some time but never done it.

So my question is if I have source(s) where I can get domains for $1 or less, in massive quantities, and then resell them for $2, 3, 4, 5 dollars etc.

Is this a strategy commonly used, and if not does anybody think it would work?

Even if i could resell for $2 a piece I could easily outsource alot of the technical work and make 100% profit.

Im talking about simply parking these, no added content. Obviously i could host them all on same hosting account but i am talking about dealing with 10,000+ domains here, just need them registered.
Any collaboration ideas? I would love to JV with someone more experienced with domain trading.

Also does anybody know of software that can see how often people are searching for different domain names... (to register but dont, not talking about keyword research here)

Sorry if this post is somewhat scatterbrained ive been up for about 34 hours.

Thank You,
Thomas

 

[Kate]

A .com domain costs nearly $8 - this is the fee that the registrar pays to the registry. So $1 or $2 is well below actual cost.
They can be had from certain registrar with coupons/time-sensitive promos (and gotchas) but in not massive quantities.

There is no upside in owning 10000 domains if they are junk. Assuming you are are able to buy 10K domains at the massively discounted rate of $1/ea that doesn't mean your portfolio is even worth $10K.

Pushing domain names to buyers is time-and labor-intensive. Even if they buy them in lots and you can push in bulk it's still tedious work for a very small profit.
You have to make your time worthwhile.

Quality > quantity.

Why do you need 10K domains ? Start with just 10 or 1 and see if the concept can be proven and if you can scale.

 

[biggie]

:talk:

hey trones....what you been smoking, drones?

where do newbs git ideas that they can get it on

at $1 a pop, to buy in bulk

thinking another sucker will swallow and not choke

dreams without facts and understanding, is a joke...in this biz


step back sun and let learning shine in your briz-zain,

fo you spend $10K on criz=zap

and drive yo investas insane

ya herd!

 

[Name Trader]

As a rule of thumb you will sell only 5% of your domain names each year. And even that is hard to achieve. So you will be looking at renewal costs of aprox $85K. This rule of thumb is for selling at end-user pricing. But I think it would also apply to your strategy of buying crap names for $1. You'll have mostly domains that nobody wants. You can't make qualitative judgments buying 10K names.

Lets say you sell at $2 = 100% profit per domain. You need to sell 50% of your portfolio each year just to break even. Lets say you sell at $5 = 400% profit per domain. You need to sell 20% of your portfolio each year just to break-even.

You will be breaking all kinds of records if you achieve that. But because you can't make qualitative judgments on that many domains, you will never break-even, imho.

Besides that. No Registrar is going to sell you 10K of domains at $1. They'd be losing about $70K.

It's hard to find even 1 decent domain .com available for registration these days. Just finding all these domains would be more than a full-time job for 1 person. Of course if you want to register hnhh602.com it is probably available, but you will never sell it. You need the qualitative assessment that you can sell the domain. That takes time.

All figures assume your are registering .com domains. You are even more crazy if were thinking you can sell any other gtld or cctld.

The workload of actually buying 10K domains and marketing/negotiating/selling/pushing 6 domains/day (assuming $5 sales) would be enormous. Where are your buyers coming from, that the turn up every day and buy 6 more? That excludes any trademark issues you might have to deal with, with your domains.

As biggie stated... what have you been smoking?