strategy Strategy to sell domains at least 50-100$

[ImperiousDon]

Can you give me some advice ?

 

[boker]

The trouble with targeting $50-$100 is that the math simply doesn't work. The best portfolios out there have an annual sell-through of around 2%. I would surmise that a hand-reg portfolio is closer to 0.5% or so if done well.

So, if you register 1000 domains @ $10 ($10k investment) and sell 5 (0.5%) of them the first year for $100 each then you are out $9500 on your initial investment after 1 year. The only winning strategy after that would be to drop the other 995 domains.

Even at a best case scenario you'd sell 2% (20) of these domains and still only recoup $2,000 of your $10,000 investment.

The only way to make a sustainable profit is to identify domains that you can sell for $1k or more

I respect your experience, but for me your math doesn't work. This is a real life experience: mine. Last year I've sold 357 domains to resellers and 23 to end users, out of around 800 , making xxxxx profit for each category, all of them were hand regs. Also, who is saying that you need to pay around 10$ a piece( ex godaddy)? My average acquisition cost was just under 3$ each, with buys as low as 0,31euros...so the math is changing, doesn't? Also, from my experience the sale ratio is much higher when you sell under 100$ than when you sell over 1000$, so it's much higher than the average 2% of the industry. Of course, if you don't know what to buy, you will loose money either way.

 

[imadoer]

I know about the $1 link, but thats a fluke, not something you can rely on. Once they figure it out, its gone. Thats also only been around for a few months. So if you used it to build up a 1,000 domain list and sold 80% in a few months you would have had to buy almost all of them in the first few weeks since they put it up.

I just do not see how or where you are doing this. You're not selling them here AND if you sell them on the major platforms most wont take them for $35 or will eat your profits.

Fluke for now maybe but how many have you gotten from this sale???? I've crushed flash sales and dotster sales.. I have the ability to sell hand regs st a higher profit then 35 each I'm sorry that u dont

For those that know me and how I sell they know I speak the truth

 

[domeen]

Looks like some guys have invented a perpetual motion machine ! But thats not the first time someone has done that

 

[Paul Nicks]

@Paul Nicks do you tell everyone where you get your domains?? And how ?? Do u tell everyone all your methods and secrets?? Please share them all so we can all know everything you do and make your life 10x harder

yup

Apologize for the audio quality, we'll have a better setup this year

 

[NYJimbo]

I have the ability to sell hand regs st a higher profit then 35 each I'm sorry that u dont

Wait, you said you sell 80% of 1000 for $35. Dont change the numbers. I sell domains for a good profit. Sold a hand reg at Afternic 3 weeks ago for $1650.

But you were talking the 1000/80%/$35 thing. Not something else. If you dont want to answer my question, fine. But dont get defensive and change things around.

 

[imadoer]

All I smell is hate. Well one guy could do this and I cant. This cant be true it just cant be! I didnt reinvent the dam wheel I just offered a strategy that works if done right

 

[NYJimbo]

All I smell is hate. Well one guy could do this and I cant. This cant be true it just cant be! I didnt reinvent the dam wheel I just offered a strategy that works if done right

You're very defensive right now. Sounds like shenanigans to me. Have a nice day.

 

[Paul Nicks]

All I smell is hate. Well one guy could do this and I cant. This cant be true it just cant be! I didnt reinvent the dam wheel I just offered a strategy that works if done right

But you didn't. You offered the insight that there is a strategy that does work without discussing what the actual strategy is. Our OP isn't able to duplicate your success without your methods, so why should we give him false hope that $50-$100 is a winning bet?

 

[imadoer]

You're very defensive right now. Sounds like shenanigans to me. Have a nice day.

Defensive yes I dont ike being called I liar or being interrogated when I'm trying to share.

yup

Apologize for the audio quality, we'll have a better setup this year

I'm not going to watch your video

But if i had to bet it all has to do with afternic and and godaddy sales nonsense.

 

[NYJimbo]

Defensive yes I dont ike being called I liar or being interrogated when I'm trying to share.
.

Trying hard to see where I called this guy a liar..... If anyone sees it, let me know....

 

[imadoer]

But you didn't. You offered the insight that there is a strategy that does work without discussing what the actual strategy is. Our OP isn't able to duplicate your success without your methods, so why should we give him false hope that $50-$100 is a winning bet?

Your advice is a false bet too. It all has to do with choosing the right names you can buy 1000 domains and have a sell through percentage of 0 of he listens to you. So if you want to put it like that we are both wrong huh

 

[imadoer]

This is getting out of hand and destroying this guys thread Paul I think you should keep your assumption stats to your self and I'll keep my strategy to my self. And jumbo get a life

To the OP this is the last thing I will say learn rn how to buy domains and sell at profit I would reccomend making small fast sales until you get a nice chunk of money together so you can buy better names to hold on to.

 

[Paul Nicks]

Defensive yes I dont ike being called I liar or being interrogated when I'm trying to share.



I'm not going to watch your video

But if i had to bet it all has to do with afternic and and godaddy sales nonsense.

That's certainly your choice. FWIW the video is a discussion on how we operate one of the largest and most valuable portfolios in the world. Yes AfternicDLS plays prominently but it is more an in-depth view of how we break down our portfolio, how we price, where we see the best return etc.

 

[Bob Hawkes]

The OP said AT LEAST (my emphasis) not necessarily at that level, so I am not sure that all advice here is necessarily relevant. That being said, lots of good advice of which I would argue the most important is to decide who would potentially want the domain name (a list of not just one organization!), why it is advantageous to them and how you will get them to notice the domain name availability, BEFORE you acquire any domain name. Of course, many of us, myself certainly included, have not always done this !

There is a lot more activity at the value end then I think sometimes is sometimes recognized on NPs. For example most recent NameBio report (Sept 12) has average sales price of $2023. Impressive, huh? Take out JUST ONE (the largest sale) and the average price of the other 196 sales is $906. On this day on NameBio 133 of the 197 sold for $500 or less, and 102 for $300 or less. I do know that NameBio is potentially not recording more high value end user sales, but nonetheless true that many, many sales are for $$$ and less.

To answer the OPs question, at this price range offer the domains at a venue that is easy for the end user to acquire the domain name and put it into use for a Wordpress or hosting/template plan. Venues like GoDaddy and Namecheap Marketplace have huge advantages for the end user, in that the process of buying and signing up for hosting etc. for the end user is easy.

Also, be really alert to costs and minimum commissions in particular. The $60 minimum at Afternic for example is a big chunk of a $250 sale. Places like Undeveloped, Namecheap Marketplace, Namesilo Market etc. are better choices at this level.

I do realize many will feel it is too much work for the return at below perhaps $$$$, and if I was in it as a full time job would probably think that, but if in it as a part time interest, prices in even low $$$ range can be worthwhile. I think there potentially is a huge market here, as many businesses and organizations that will never (rightly or wrongly) consider paying 5 figures for a domain name are much more numerous than those who will.

Bob

 

[Windoms]

I guess there's very different types of domainers and we can all learn from each other.
Theres one dude I follow on Dynadot (you can see all recent marketplace adds). He is consistently adding dozens of brand new registered domains EVERY SINGLE DAY and pricing them at xx$ (under 50). Consistently, since Ive found him in June (I bought a domain from him).
And thats just one strategy among others.

 

[Windoms]

But yeah @ImperiousDon you cant just register anything so you need to get the feel of what makes a good domain

 

[DrJacoby]

The $60 minimum at Afternic for example is a big chunk of a $250 sale.

I believe Afternic has a $15 minimum commission. Quote:
"We receive a 20% commission ($15 minimum)* for sales on both the Standard Network and Premium Network."

 

[Bob Hawkes]

I believe Afternic has a $15 minimum commission. Quote:
"We receive a 20% commission ($15 minimum)* for sales on both the Standard Network and Premium Network."

Thank you for the correction @DrJacoby and you are totally right. I had meant to say Sedo have a $60 minimum (for most extensions) and in a totally absent minded way typed Afternic. Thank you for catching it. Here is the link for Sedo. Unfortunately it is too late to correct my post, and hopefully people will read down to see the correction.
https://sedo.com/us/what-we-offer/price-list-for-services/

 

[bmugford]

I would say Paul Nicks summed it up quite nicely.

Sure you might have a higher sell through rate if you are selling domains for $50-100 than end user prices, but the math still doesn't make sense.

1.) You need to find a constant supply of domains that are available and in demand enough to sell.
This needs to be consistent and repeatable.

2.) Let's say you pay an average of $10 for .COM. You would need a sell through rate of 20% @ $50 just to break even. You would need 10% @ $100. Then when the next year comes you either have to drop them all or pay for renewals again.

There might be a few exceptions, but in general this type of business model is just not viable today.

Brad

 

[Bob Hawkes]

You make a strong mathematical argument @bmugford (and before that Paul Nicks). I think achieving even a 10% throughput is challenging and as you say finding names for $10 that are saleable is pretty hard on any continuous basis.

I would add the following:

1. The math might work but only if occasionally you can get well more than that for the odd name. In many ways, if you exclude the big sales, it is clear that overall domain investing is losing I would argue.
2. The math is less clear for ngTLDs, at least when they could be purchased first year for less (decreasingly so with FFM now under new management and not discounted). If you only try first year to sell, and say have a $2 average acquisition cost, and a $60 average sales price, then you need to sell 1 out of 30 to break even. Even that not easy as the sales rate of new extensions is probably at least something of order of 5 to 10 factor less than com.
3. The math may be different if you can get a good deal on multiple year renewals up front. This seems more possible in past than currently.
4. Of course if any cost at all for labour is inserted, or for other costs like Efty or hosting, then the math is even more problematic.

Please no one interpret this as my debating what @bmugford said. I agree with his argument. I think there are multiple possible ways to make slight profit, but none of them are easy, and hats off to those who consistently do it!

 

[imadoer]

Paul Nick's makes sense when it comes to selling to endusers sure if you enjoy having a 2% sale percentage and your passive

But imadoer is wrong right lol I laugh at you guys.


Let's say you buy 10 dot coms for $1.00 each witch is possible when promos are around like right now.

And sell 8 of them for the minimum of $35
That's a profit of 270 correct how hard is this to do if you know what your doing??? Real hard if your Paul Nick's or nyjumbo lmao.

I can do this in my sleep and for those who cant see it are just blind.

You can take that 270 and buy one domain from auction or private or where ever. But now you have a $270 domain from $10 and you can probably sell that if you bought right from 1-5k and that is one way to do things but again I am wrong and I am clueless why should I advice new new members to do this. Dont listen to me I dont know a thing

 

[boker]

I would say Paul Nicks summed it up quite nicely.

Sure you might have a higher sell through rate if you are selling domains for $50-100 than end user prices, but the math still doesn't make sense.

1.) You need to find a constant supply of domains that are available and in demand enough to sell.
This needs to be consistent and repeatable.

2.) Let's say you pay an average of $10 for .COM. You would need a sell through rate of 20% @ $50 just to break even. You would need 10% @ $100. Then when the next year comes you either have to drop them all or pay for renewals again.

There might be a few exceptions, but in general this type of business model is just not viable today.

Brad

That why I have gived an example of real life...I've done this all last year, I'm buying constantly up to tens of domains a week and I could sell right now up to 50% of my names to resellers or to low end users offers(xxx). I'm testing some other strategies right now, but I could start selling at any time at the same rate. So there is a constant supply and constant demand( you need to diversify for this reason: geos, brandables, some low cost emd's, acronyms, ngtlds, cctlds)
80% of the domains sold last year were .com, and my average acquisition cost was under 3$...this year it will be around 4$ probably( because of some acuisitions through namesilo and dynadot), so nowhere near 10$ and I've had a sell through rate of close to 50%, 380 out of just over 800 and I was not selling my top 20% names and I've rejected a good amount of reseller offers, so it could easily go up to 80%. I could give you numerous examples of hand regs from the last months for which I've received offers of xxx from resellers( and not only) in a matter of days after registration.
In conclusion, it can be done, but you need a strategy, but the same is true for high value domains, if you overpay, you can still loose big even if it's a high value domain.

 

[Bob Hawkes]

By the way, I meant to also say that I agree entirely with @imadoer with respect to the wisdom of starting small and becoming more adept at domain name investment basics while you see a constant flow of sales, even at minor prices. I think that if you start out too big too fast there is danger you will invest more than you can safely afford to lose, and run too high a risk, before you have proven your domain skills.

I see myself at that stage now. I take low risks (low enough even if I sold nothing it would not impact my family really), am learning to get better at selecting domain names and how to promote them. My first sale was for $10 which seems so tiny, but I had only paid less than a $1 for it, and it did emotionally feel so good to have a sale. The next month I had 3 more and I think that it is really hard to wait years for any kind of sale, and there is emotional value, even if little or no economic payoff, in starting at the low value end.

As I said earlier, I think this end of market is not currently very well served and is potentially huge - there are bloggers, tiny one person businesses, etc. that will pay $40 to $140 for a domain name if it is substantially better than one they can find to register, providing they trust the seller and the sales process is smooth.

 

[bmugford]

In conclusion, it can be done, but you need a strategy, but the same is true for high value domains, if you overpay, you can still loose big even if it's a high value domain.

I agree. Spending more for domains is no guarantee of success. Unless you know what you are doing it is just a quicker way to flush money down the toilet.

The math works even worse with marginal domains that frequently sell for mid $XXX+ at auction venues.

Basically if you are good at picking names for the right price anything is possible.
Without the ability to spot good domains at the right price no business model is going to work.

Brad

 

[golan]

The trouble with targeting $50-$100 is that the math simply doesn't work. The best portfolios out there have an annual sell-through of around 2%.

Sorry. With respect to your experience, this is not exactly right in this case. You talk about "best portfolios", while we here are talking about starting small. Talking EMD, Geo, etc. Here we can really sell just anything, for cheap, yes.