Dominion.Domains

Real domaining costs

Labeled as strategy in General Domain Discussion started by NoBS, Feb 13, 2018.

Replies:
1
Views:
233

  1. NoBS

    NoBS Established Member

    Posts:
    181
    Likes Received:
    162
    Four examples. Adjust and expand for your needs. Thoughts welcome.


    Growing domain folio

    Typical backorder acquisition with low auction bidding @ poverty wage


    $210 labour /domain. $210 * 52 = $10,920 (7 hours /wk mining lists with 1 buy /wk. Survivable minimum wage $30/hr inclusive of super + benefits)
    52 domains @ $100 = $5,200
    52 renewals @ $10 = $520

    $16,120 total (excluding $520 renewals every following year). Domains are fixed folio in subsequent years.

    Optimistic ~6% folio turnover (~3 domains) = $5,373 per domain sale price /yr break even
    Realistic ~2% folio turnover (~1 domains) = $16,120 per domain sale price /yr break even


    Typical backorder acquisition with moderate auction bidding @ livable wage

    $420 labour /domain. $420 * 52 = $21,840 (7 hours /wk mining lists with 1 buy /wk. Realistic livable wage $60/hr inclusive of super + benefits)
    52 domains @ $500 = $26,000
    52 renewals @ $10 = $520

    $47,840 total (excluding $520 renewals every following year). Domains are fixed folio in subsequent years.

    Optimistic ~6% folio turnover (~3 domains) = $15,947 per domain sale price /yr break even
    Realistic ~2% folio turnover (~1 domains) = $47,840 per domain sale price /yr break even



    Fixed 100 domain folio over 10 years

    Typical backorder acquisition with low auction bidding @ poverty wage


    $210 labour /domain. $210 * 100 = $21,000 / 10 = $21,000 / 10 = $2,000 /yr (7 hours /wk mining lists with 1 buy /wk. Survivable minimum wage $30/hr inclusive of super + benefits)
    100 domains @ $100 = $10,000 / 10 = $1,000 /yr.
    100 renewals @ $10 = $1,000 /yr.

    $4,000 /yr total sales (break even).


    Typical backorder acquisition with moderate auction bidding @ livable wage

    $420 labour /domain. $420 * 100 = $42,000 / 10 = $4,200 /yr (7 hours /wk mining lists with 1 buy /wk. Realistic livable wage $60/hr inclusive of super + benefits)
    100 domains @ $500 = $50,000 / 10 = $5,000 /yr.
    100 renewals @ $10 = $1,000 /yr.

    $10,200 /yr total sales (break even).
     
    Last edited: Feb 13, 2018
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. bobbarato

    bobbarato Established Member ★★★★★★★★★★

    Posts:
    468
    Likes Received:
    451
    Ooof! Harsh numbers! Some will quibble about your cost structuring but bottomline...

    Good thing domaining is a hobby thing for me. The ChiP frenzy pulled me from solid red into solid black and that was pure luck.

    Deep respect for the mid to low range domainers who can make a living doing it.

    I fear for many, domaining is like uber or lyft driving - you aren't really making a profit.

    If I was going to make a living with domains, I would create a few straw sales to gain a rep as a broker. 😎
     
    Last edited: Feb 13, 2018

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!

Share This Page

Lysted
  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...