Selling Used vs. Unused Domain Names

[WillW]

So I have a portfolio of about 150 domains give or take. I've been developing one of them for the last few months and it's definitely becoming an expensive venture. It's also taking up a lot of my time and everyone knows that time = money! Based on the average costs of developing a domain (let's just say the average costs of developing on WordPress), I'm curious about people's thought process behind selling used domains that you develop vs. selling unused domain names,

I realize like many of my other questions (well almost all my questions), the answer always typically lies on the quality of EACH domain. My thought process behind this is that developed websites tend to sell for higher margins, especially when a website is profitable and has a following. I feel like if you develop one of your domains into a website that ends up being profitable and has a loyal following, you're more than likely to sell that domain for higher margins than you would if it was unused.

I've put my domains into three categories:

Domain names that have value (factors that include high CPC or a "hot" category for instance)
Domain names that can be used for any field
Domain names that can only be used for a specific field

My thought process behind developing a domain into a website ( on WordPress for instance)
- the cost of a Business or Premium Plan
- the cost of email marketing (Mailchimp for instance)
-The amount of time it takes to develop and run a website
-The cost of advertising
-SEO tools

Some of these, like email marketing and SEO tools aren't necessarily a must-have for developing a website, but if I plan on developing some of my domains, I want to do it right.

I feel like there are two types of buyers. Buyers that want to purchase domains to develop and Buyers that enjoy purchasing domains that are already developed. Sometimes there are buyers that do both. I feel like domains that are either in the really "hot" category or domains that already have high value as is, are not in dire need of being developed. Domains that have no category and can be used for multiple fields, may be the best category to develop but I also think it depends on the buyer. The same applies to domains that can only be used for a specific category.

I realize a lot of it, if not all of it, depends on the domain and depends on the buyer, but I'm curious to hear how other people have faired developing domains vs. selling unused domains.

Thanks!

 

[xynames]

Let's assume that the end goal is to SELL the domain. So that even on your developed domain you would have FOR SALE links on the top and bottom of the index / home page.

A developed domain has more traffic, and could have more value, but anyone looking at it will be confined to view it as good mostly just for whatever you are doing with it. The equivalent, say - of a home for sale that has been painted, decorated in a certain distinctive style. Let's say, mid century 1950s style. Well, a buyer who hates that style and prefers say ultra modern, or traditional, or Meditterranean, or whatever, might be turned off completely to your house.

On the other hand, you have a completely UNdeveloped domain. The equivalent say of a house that is painted in White Shadow and is unfurnished.

There are plus and minus to both extremes.

A more middle of the road approach might be a custom landing page unique to that domain that gives many different examples, with words or images, of uses for the domain. This would be like, say, selling the house furnished but with more Model Home style furniture that lets the house look good, but doesn't define it in one style only. This is the direction I am going in, and yes it takes time to create a slightly different landing page for each domain, but not as much time as developing a whole website for the domain.

Now, if your domain is something that might be good for only ONE thing, such as the fans of a rock band (just for example), then developing it might not hurt your sales appeal since it is narrow in focus anyway. Anyone landing on it would think, okay! yes this is something like what I was going to do anyway, or appreciate the targeted traffic you have been building up for him.

I mean of course ebay.com is worth a lot more today than if it had sat empty all these years, but just as a hypothetical, anyone buying it would use it for an auction site. Not for say, porn. Ya follow?

If you know what you are doing, and are a coder as I am, there is practically no cost to developing a website but there is TIME spent. I once created and launched eleven different websites, each so different from the other that no one landing on one would think it had anything to do with the other, in a couple weeks space. It can be done quickly, but it's not easy. I create all my websites either from scratch or by modifying templates that I have. I do not use Wordpress, Wix, WooCommerce or any of that garbage to create the actual sites, although I will add vbulletin 5 or MyBB forums, and WP blogs, as additional pages to my websites.

Same applies to creating your own landing pages. Create them from scratch don't use those garbage WP, Wix, etc. would be my advice.

 

[Bob Hawkes]

Lots of sound advice in @xynames detailed answer to @WillW original post. I have a few less domains than you, but even for that number I think doing any kind of meaningful development is way too big a task. I do buy some names with 'intentions' to develop, but realistically for most it never happens. I would only develop a very few where you are expert in the topic, and truly enjoy developing.

While realizing the limitations of most of the stock landing pages, I would probably use some sort of custom made landing page like Efty or Undeveloped or one of the many others. If you have time and want to do your own, or if cash is really tight to pay Efty fees, then maybe do one page per domain yourself, but realistically people are buying the domain name, not your lander.

I think it is really smart how you divided your domain names into three categories @WillW and the idea of seeing if a domain has broad possible application or narrow. I hope this sparks a discussion around that topic.

Bob

 

[WillW]

@xynames - Great advice - I think developing websites from scratch is definitely the way to go. Definitely a cheaper option than WP or Wix, and you can design and create them the exact way you want. You're right in the sense that developing websites regardless, takes up a lot of your time.

I do think it's a smart idea to develop websites for certain domains that target a specific audience. I do currently have landing pages for all of my domains through Efty, but I like your idea about creating your landing pages from scratch so you can add keywords and images to your landing pages that can show potential buyers the full-spectrum of the possibilities for each domain.

Thanks for the help!

 

[WillW]

@MetBob - Thanks! I've noticed I have domains in my portfolio that can only target a specific audience, and I have domains in my portfolio that can be used for multiple fields. I figured putting my domains into a few categories would allow me to figure out a few different strategies when it comes to advertising and selling my domains. Domain flipping is definitely a process to say the least so I figured I'd do everything in my power to get my domains in the best possible position to sell.