What does an average domainer make a year?

[KCsGreat]

I was just interested to know an estimate of what an average domainer can make a year. I know you can get lucky and hit a big score, but I'm saying just buying and flipping domain names, with average returns, not every single one at end users prices obviously.what is realistic yearly income?

 

[DU]

Others success or failure can maybe guide your judgement and I urge you to read read read what others have done before you .. but at the end of the day.. your domaining is just that..

..

Please do not get caught up in others $$$$ stories .. yes they happen but not everyday to everyone

You can tell when reading who is spinning a yarn and who is fairly honest. Don't trust any NDAs. Remember a $100K sale is a $5K loss if the domain cost $105K.

Everyone tells you their $1K sale.. they don't tell you their $1K renewal bill.

Follow people like Brad.
Ignore people like me.

 

[Kate]

If the average domainer loses money, why do they do it? Is it the lure of the big sell one day? Like speculation?

I think many people are looking for ways to make easy money on the Internet and a sensational story about a domain selling for big bucks is enough to foster a new generation of domainers.

In the beginning, domainers make mistake, register poor domains and lose money... but the aim is to ultimately improve and make a profit.
But for most it will remain a hobby.
There is a learning curve involved and you have to be patient and dedicated... not everybody is passionate and willing to learn and adjust.

Very few people make a living on domain names. If you are not losing money you are already doing better than average.

 

[Michelle]

As default mentioned above... what is a domainer?

we all have our own aims, goals .. some are higher then others..

Asking a question like this will not give you an answer you are looking for..

answers could be true, false, mis-leading, wishful thinking .....

Others success or failure can maybe guide your judgement and I urge you to read read read what others have done before you .. but at the end of the day.. your domaining is just that..

I personally domain as a hobby which I know many do .. how much do I earn .. well enough to keep me interested as a hobby

Please do not get caught up in others $$$$ stories .. yes they happen but not everyday to everyone

 

[DU]

It takes a good mix of work ethic, common sense, business plan, etc. to make a profit.

The market is very competitive and you really need to know what you are doing to make any substantial money.

I think the average domainer loses money.

Brad

Before ANY of that you need to define DOMAINER

Before ANY of that you need to define profit/loss from DOMAINS vs other INCOME.

Then ask the IRS.

---------- Post added at 04:27 PM ---------- Previous post was at 04:23 PM ----------

If the average domainer loses money, why do they do it? Is it the lure of the big sell one day? Like speculation?

I do it for fun and learning. Profit is not my primary motive. I haven't lost money yet though which is why I continue.

I've met great people and learned a lot about how "things" work. Things being advertising, marketing, psychology, the industry, people, law, ethics, morals, people, time management, drupal, wordpress, joomla, DNS, IP, Semantic searches, IPTV, video, sales.... etc... the list is huge. It's a VERY diverse world.

The education you get at NP, DNF, AllThings.TV (I go here), TheDomains, DomainGang... is great and free. You just have to participate.

 

[Ronald Regging]

Honestly, I started out with like $20 to my name and ended up always making huge profits. And, when I say huge profits, I mean huge ROIs, not necessarily that sales happened often... There is a lot to learn in this business, but I think having some good business sense and knowing human behavior and psychology and having a firm grasp of the English language are basic starting points. It's mostly speculative. Either you are in sync with the desires of the universe or you buy crap that no one else wants. Some people know what quality is from day one, some constantly buy crap for years. But, in the end, if you want to make money you have to treat it like a business and always be selling...

I'm just getting back into domaining myself after a few years hiatus. In the past, I mostly picked up some names at registration fee and flipped for $xxx - low $x,xxx sales. Like I said, huge ROIs, but sales were far and few between. But, I wasn't always selling, I was mostly BSing and socializing. Also, if you're living off this money or use it to pay bills or buy that shiny shiny instead of reinvesting it back into the business, you'll never get anywhere, trust me on that one. Get a job, do this on the side. Save, save, save, invest, invest, invest, that's the only way to financial freedom

 

[Keith]

For the majority it's a matter of how much the yearly loss is. Beyond that I don't believe there's a specific dollar range that can be given. Everyone has different goals and ideas of where success lies in the domain world.

 

[bmugford]

It takes a good mix of work ethic, common sense, business plan, etc. to make a profit.

The market is very competitive and you really need to know what you are doing to make any substantial money.

I think the average domainer loses money.

Brad

 

[bmugford]

If the average domainer loses money, why do they do it? Is it the lure of the big sell one day? Like speculation?

I don't think they plan to lose money, it just happens with poor investments.

Brad

 

[Kate]

A thorough understanding of basic economic theory would also be helpful to many.

I can try to explain things in simple terms :D

Simply put, the supply of domains by far exceeds the actual demand. It's difficult to sell stuff that nobody wants. If you find a 'great' domain name that is available, it probably means nobody needs it. In general people don't want to pay more than regfee for a domain. They will only buy for a good reason ie. you have a really great domain that they need for their business.

Of course there are exceptions like names that just dropped, but in general the best domains are already taken.
If you want them, you need to go the right places. They won't always be cheap. The point is not to pay a low price, but to pay a price that leaves room for a good return.
It takes money to make money.

The bottom line is that the market for domain names is limited, after all not everybody needs one, and very few people will buy one on the aftermarket. For that reason, it is necessary to focus on quality because there is no demand for bad domains.

If you are short on funds and unable to invest you may be able to find a niche.
For example some people sell domain lists.
Some are service providers.
Others broker domain names owned by third parties.
Everybody has got skills, you just have to find where to put them in practice.

 

[GF]

The average domainer? They make nothing. In fact, they lose hundreds, maybe thousands of dollars a year buying crappy domains.

Those of us who are above-average? Those are the incomes you want to know about.

 

[KCsGreat]

OK, maybe that is to broad of a question to some it seems. When i say domainer, I guess I just mean someone who buys and then sells the names. Not building websites on the names, as i don't have that skill. With felonies on my record, I can either shovel crap or find something I can do that doesn't require background checks, and them looking at my tattoos and thinking i do not have intelligence, which is far from the truth. I don't have to get rich, but making a living, even if its 25k a year is better then doing grunt work because of my past. Is it better to buy a few domains that you can flip for a homerunsell, or like buy 100 domains and sell for double your investment. So like 100 domains for 10 bucks, sell for 20 a pop, and do that constantly? I've out in a thousand applications, and no one gives me a shot unless i want to work at McDonald's, which won't fly with me. I need to find something, and this perks my interest, uses my brain, and i been sucking up all the info I could find. I wish someone would take me under their wing n show me the way, but if not, just some tips from semi successful domainers would be great. I got the drive, intelligence, creativity, and patience to succeed at this, i am just looking for any and all kinds of pointers, help, whatever. My past mistakes haven't left me many options.

 

[Name Trader]

2011 was a great year for me. My first year of positive cash flow in over 5 years (as a domainer). My biggest sales year, my biggest parking revenue year, my biggest registrations/renewals year. It's been a tough learning curve, and I've still to learn a lot. My small net positive cash flow in no way compensates me for the time I've had to put in (I'd be better paid at McDonald's, less hours, more money). I also shed about 1K domains last year, and hope to halve them in 2012, which is going to be tough.

Also, almost out of the clutches of GoDaddy (even though I like their Control Panel). It was purely a decision made by the number of whois lookups you make in a day before banning your IP Address (which used to reset daily, but now seems to be a permanent ban, at least until you request unbanning). GoDaddy really aren't a domainer friendly registrar, and they don't care that they are not. They just have too many dumb retail customers.
Dynadot Rocks, imho.

 

[MicroGuy]

I was just interested to know an estimate of what an average domainer can make a year.

I would say on average about negative $425.00. IMO.

 

[theo]

"...buy 100 domains and sell for double..."

The domains are not apples. There are a million "domainers" like you thinking that is so easy. The process of understanding the domain business can take you a years and negative result.

 

[Keith]

I'm just trying to learn.

You have a few options...

1. Spend lots and lots of time doing your homework and make an attempt at flipping.

2. Buy the best domain your budget will allow and develop into a unique website.

In either case, keep in mind that quality is always superior to quantity!

 

[Jawed]

Going back to the original question, usually domainers lose money in the beginning of the career due to many reasons, such as lack of information, poor judgement and arrival and hype of a new extension. Majority of them lose a lot of money, get tired and move away.

Some of them learn from their mistakes and also learn the rules of the game over a period of time (there is no substitute for time, btw). Even for such domainers, domaining remains always as a hobby.

For a tiny minority, domaining is a full time career. These are the people who make big bucks and make big headlines tempting other newbies to enter in the industry. This way, the vicious circle goes on.

PS. The above is true in the stocks market too. The point is there is no easy money in the domaining industry at all.

 

[Kate]

I think it's never too late to do domaining but it is getting more difficult and competitive everyday.

In theory you can start with a small amount of money - the barriers to entry are low and the potential rewards are enticing. That's what makes domaining attractive :tu:

For example you can do like this:
Analyze the lists of deleting domains (or better: the prerelease) and buy a few that you know somebody else would want (with reasonable likelihood). The goal is to spot the names that are undervalued.

If you pick domains carefully you should be able to sell at least one for, say $500.

Then you pay your initial investment and reinvest the money into a higher quality domain. You sell it to an end user for $1500. You reinvest, and you trim your portfolio of the same time. You get rid of the nonproductive domains.
You gradually improve the quality of your portfolio. Because you now own quality domains you are making 4-figure sales.
Lather rinse repeat.

Now that's just the theory. Of course there is a gotcha. In order to pick the right domains you will need experience and gut feeling, that take time to acquire. And of course you are not alone, there is competition.

Before you make a profit, you are likely going to sustain losses. Jawed said it well. Most will move on to something else when they realize they built a worthless portfolio and wasted money.

The problem with domains is that you have no guarantee of a steady revenue. Domain sales are unpredictable, some months are very good, some are horrible so it's difficult to rely on that model unless you are doing it on a large scale.
Revenue from parking is not an option either unless you have quality domains that have natural traffic.
To sum up it's no wonder few people make a living on domains.
Domaining as an additional revenue stream is more realistic than as a day job imho.

 

[bmugford]

Domains only have value if there is demand and scarcity, so it is true the winning domainers and registrars and auction houses all need to keep getting new players into the game. A bit like the tobacco industry?

It depends what your business model is.

If you have quality domains, there will always be end user demand, so the "domainer" world is almost irrelevant.

Brad

 

[Kate]

A huge part of Domaining, is based on Speculation. There's no business model behind it.

Most domainers don't have a business model because they approach it like a hobby. But domaining should be treated like any business.
There should be a business plan as said above.

Domain sales are unpredictable, but the odds increase considerably when you have quality domains. So, if you have good inventory you will be making sales on a regular basis. The money will also pay for renewals and maintain unsold domains. Because the margins are high on domain names, that's what I like in this business.

And of course, you always have to trim your portfolio. The domains that make no revenue and remain unsold after N years will probably be eliminated, unless you develop them.
Cutting losses is essential in any business.
I think many domainers are failing on that because they are either infatuated with their domains or lacking objectivity.

To sum up the idea is to make calculated and educated decisions vs pure speculation.
It can be done.
Companies such Buydomains & Hugedomains are doing just that on an industrial scale.

 

[srisri24]

In the last Five years of my domaining, i have lost over $5000. This is because, i registered ordinary names and kept on renewing them. For some good names, i paid more than reseller prices.
During LLLL.com buyout and post buyout, i paid $40-$80 per domain to aquire in the aftermarket. Paid again renewals for 4-5 years. Now its becoming hard to sell at $25 per name.
At one time i was paying renewals for over 500 domains, now my portfolio is at 120. I am planning to bring it down to 50-60 in the next 5 to 6 months time.

 

[gutz]

Wow, I'm impressed.

I registered on this site just for curiosity's sake, and was really expecting just to find a lot of posts giving little info and just trying to market whatever they could. However, after reading a few threads, I have to say there are some quality members here providing really good, and honest, answers to other members questions. Looks like I just found one of those "gem of a community" forums.

Cheers to you all

 

[KCsGreat]

Do not think it is easy at all. That's why I am asking questions. Don't appreciate the condecending tone. I'm just trying to learn.

 

[RWD]

what does an average domainer make a year?

Mistakes!​

an error in action, calculation, opinion, or judgment caused by poor reasoning, carelessness, insufficient knowledge, etc.

a misunderstanding or misconception.


This about sums it up. IMO

 

[KCsGreat]

Thank you. For all the answers. I think rookie mistakes will happen, but I figure if i ask, n study, and learn I can make them happen a lot less. Any other info anyone wants to share I am always willing to listen, you can even pm me. I appreciate the help you guys

 

[carob]

For a tiny minority, domaining is a full time career. These are the people who make big bucks and make big headlines tempting other newbies to enter in the industry. This way, the vicious circle goes on.

The ones who earn are the registrars and commission-based intermediaries like Sedo.

If you exclude all those who gamble on domaining then give up after losing as much as they can stand, which is most people, then the remaining "pro" domainers probably make at least enough every year to cover their renewals.

Domains only have value if there is demand and scarcity, so it is true the winning domainers and registrars and auction houses all need to keep getting new players into the game. A bit like the tobacco industry?