ROI a missused term

[fatter]

ROI is one of the most missused terms in the domain industry IMHO, if you owned a brokerage firm that bought 100,s or 1000,s of stocks as an investment and sold one for a 1k roi and the rest lost money the brokerage firm would be considered a loss for investors if they didn't make a profit. Many domainers own thousands of names so to make a profit on there portfolio they need to sell high to cover reg fees of the remaining domains. While it feels good to have a great ROI on the sale of one domain name, I have quiete a few of them under my belt. I think it gives the wrong impression to new domainers at times.Thinking it is the norm, when in reality most domainers operate at a loss.
Joe T

 

[Asfas1000]

ROI is properly used when something can be scaled. For instance, you buy some advertising for $1,000 and make sales for a pure profit of $1,800. Then you expect that if you scale your investment, and spend $10,000, you will make $18,000 in profit. (same ROI) And so on.....

So ROI on a single domain doesn't even make sense.

 

[Kuffy]

What we do is to value our portfolio, and then use that for a ROI calculatiin. This way you don't even have to make a sale. My ROI is 25,000% at the moment, but it might go up if I change my auto-bot valuation site.

 

[D Haynes]

There are probably other factors that arent accounted for in ROI too. For instance, does anyone factor the time they spend scanning droplists, researching endusers and finding email contacts etc? $20 an hour adds up pretty quickly.

For a closer calculation you need to know how much you spent on your portfolio, how much youve made from sales and parking etc, how much you pay in renewals and how much time youve invested and at what wage. Then you see if youre really in proffit. Unsold domains are worth nothing untill theyre sold in my opinion. I cant pay the gas bill with an unsold domain.