What is an "Average" domainer?

[biggie]

:talk:


figured i'd ask the question, since i see plenty of posts referrring to the "average domainer".

wanting to know what he/she makes a year, where they park their names, etc


so, in your mind.... What is an "Average Domainer"?

 

[redemo]

 

[Domaineri]

Annual sale rate depends on many factors. Mine is closer 0.9%

Besides the usual items discussed like quality, length, style, radio test, registered tld’s, domain age and more. Your price has a huge effect on velocity of sales. Example you have 100 names with GD Govalue appraisals of 2300-2500.

Priced at $500 you may have 5% STR, $1000 may have 2-3% STR. Priced the way most Domainers price for retail probably closer to 1% or lower.

Let’s say in above scenario your average cost per domain is $150 setting you back $15K you get great STR 5% selling names at $500 so you sell 5 names gross $2500 but have avg 20% commissions netting you $1600 the 95 names you don’t sell have renewals of $950. At this rate you will throw the towel in before you break even. So high STR doesn’t mean great success. If you had sold at $1000 and had 3% STR you would net $2400 after 20% commission and renewals would be around $970 on domains not sold. Your doing better but still takes a long time to break even.

But if you forget about STR and price names in line to where they should be you may find yourself only selling ~1 name per 100 a year, but it may sell for $4K or higher. Ultimately you will make more pricing them correctly even if your sales are substantially lower. You should also have 3-5% of your names as shoot for the moon. You will never get a 5 figure name sell if you don’t ask for 5 figures like wise 6 or 7. Just (1) 5 figure or 6 figure sale can make a huge difference on an domainers portfolio average domain sell price.

There are a few scenario this doesn’t apply to: Some people sales style is to aquire or hand reg names with the soul purpose to flip to other Domainers. These types of sales are general 2-5x acquisition costs and they don’t hold large passive portfolios. They are looking to make small profits and run. Some very successful Domainers run this strategy. But this requires commitment and hustle, this won’t work well passively.

Another scenario are people out bounding domains not just sitting back passively. These people generally buy a few names work them hard sell a few and add a few more to work.

Steve, thank you! You helped me a lot with figuring this out!!!

Have you had a chance to wholesale some of your domains?
I saw in one of Namepro's surveys, that many in the community use it as part of their work routine (about 20% of their sales are through wholesale).

 

[Steve Andersen]

Steve, thank you! You helped me a lot with figuring this out!!!

Have you had a chance to wholesale some of your domains?
I saw in one of Namepro's surveys, that many in the community use it as part of their work routine (about 20% of their sales are through wholesale).

Yes I have

 

[biggie]

Annual sale rate depends on many factors. Mine is closer 0.9%

Besides the usual items discussed like quality, length, style, radio test, registered tld’s, domain age and more. Your price has a huge effect on velocity of sales. Example you have 100 names

Hi Steve

i agree, the usual items like quality, extension, etc, will always be big factor.

but i liked the way you "broke it down" with those pricing and other variable examples and how they can affect STR, while also noting the STR is not as important as ROI, per sale.

nice post!

imo...

 

[blogspotter]

I feel like I am an average domainer. I started around July of 2019. I think and did not get a sale until Nov that year. Then did not get another sale till march of 2020.

Fast forward to 2022 and I started the year off with $5182 in net payments I’ll get this year after commissions from domains sold last year on payment plans.

January 2022 I had 4 sales $1600 Dan, $4988 Afternic, $1495 Afternic, $2288 Afternic.

February 2022 I had 3 sales $2799 SquadHelp, $2500 SquadHelp, $3150 Afternic.

March 2022 - Suffering from domainer depression - I have not sold a name this month, by now I have learned they sell in spurts.

Bro.. This is as if I wrote it LMAO. Except you were exactly 1 year earlier.

I started in July 2020 had has my first sale in Nov 2020, but.. I don't know what kind of luck it was but I had 4 sales in Nov-Dec and 3 SEDO sales, can you believe it.

And my next sale would be in April I think. I had the domainer depression pretty much from Jan to Mar hahaha.

But that was also the time when I burnt the candles at both ends and I guess I am still reaping the rewards from those days.

 

[biggie]

I started in July 2020 had has my first sale in Nov 2020,

Hi

having a sale within a few months, probably gave you a lot of motivation to keep going.

fast forward to today and now some who don't get a sale within a few months think the domain sky is falling.

so, i guess it's how you see the game, in your own time frame.



imo...

 

[Domaineri]

Hi

having a sale within a few months, probably gave you a lot of motivation to keep going.

fast forward to today and now some who don't get a sale within a few months think the domain sky is falling.

so, i guess it's how you see the game, in your own time frame.



imo...

Yes, I agree.
When we start, we have a 60-days period in which we study the market and purchase domains that are not eligible for fast transfer. Then, there's the selling percentage factor - if you have only 100 eligible domains, you'll sell 1 domain in 1 year (in a good scenario).
So in the beginning, it's really difficult to understand if you're doing ok or not.

 

[StartupNames]

No way to know unless one performed a survey.
Without that, most people are probably biased by their own experiences.
One problem with a survey is that I don't think many people want to share that information

Agree

 

[HotKey]

Hi

having a sale within a few months, probably gave you a lot of motivation to keep going.

fast forward to today and now some who don't get a sale within a few months think the domain sky is falling.

so, i guess it's how you see the game, in your own time frame.



imo...

Well said, and to expand a bit; there is a euphoric sense of like "wow, that was easy" after a sale that makes the mind think the next one is just around the corner. But when just around the corner turns into days, weeks, even a month or two, it can lead to a sense of stagnation and indeed, the sky is falling.

I think a couple of things to keep in mind on is what the domain sold for and the quality of the name. Some stuff isn't easily replicated and long waits in between a sale are nothing to worry about.

And time frames are dependent on the type of domainer you are, long term with a small portfolio vs thousands of names where quick flips are your bread and butter. Stagnation doesn't work well on the latter and indeed there may be an issue there if it occurs.

 

[Kenny]

Well said, and to expand a bit; there is a euphoric sense of like "wow, that was easy" after a sale that makes the mind think the next one is just around the corner. But when just around the corner turns into days, weeks, even a month or two, it can lead to a sense of stagnation and indeed, the sky is falling.

I think a couple of things to keep in mind on is what the domain sold for and the quality of the name. Some stuff isn't easily replicated and long waits in between a sale are nothing to worry about.

And time frames are dependent on the type of domainer you are, long term with a small portfolio vs thousands of names where quick flips are your bread and butter. Stagnation doesn't work well on the latter and indeed there may be an issue there if it occurs.

It can be a little like when someone is first learning to play poker.
The first time they draw to an inside straight they make the hand.
Now they may think, "Hey, nothing to this game", and spend the rest of their life, (and their money) trying to fill an inside straight.

Peace,
Kenny

 

[J.D.]

An average domainer spends more annually on renewal fees than they earn in profits from selling domain names.

 

[HotKey]

It can be a little like when someone is first learning to play poker.
The first time they draw to an inside straight they make the hand.
Now they may think, "Hey, nothing to this game", and spend the rest of their life, (and their money) trying to fill an inside straight.

Peace,
Kenny

Any second now.. it's coming I know it is. :P

Good correlation. Methinks some of domaining has more to do with the bluff, then the actual cards. Not my gig, but some have it down to an art.

 

[biggie]

Methinks some of domaining has more to do with the bluff, then the actual cards.

Hi

well.... psych, hype and propaganda, by a persona` or highly followed figure in the game,
could manipulate or convince the masses in a closed environment such as this.

it's human nature to want to believe in something, and because of that,
i've seen it happen more than once, over the course of two decades.

fact-checking, doing the due-diligence, questioning the questionable and actually reading the words that are written... without adding or subtracting, while having ability to "read in between" the lines as well.

and even after all that, you still might get suckered


imo....