What is an "Average" domainer?

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biggie

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: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"?
 
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If it is of any help I am not average. 😎
 
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The average cost for a brand new domain will typically be anywhere from $10-12,
 
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: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"?
I have no clue and I am still learning about it.
 
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You got like 12 different types of domainers

1. Large Buyers of multiple domains
2. Buyer of Super Quality domains
3. The Squatters Hold domains long time
4. The ones who buy to sell for profit quick
5. The Developpers they develop to make $
6. The Ultra Advanced Domainer who redirect the flow of traffic by using key words causes an influx of traffic similar to a pinball machine
7. The Beginer usually buys really bad sites
8. Then you get the domainers who makes there own Gtld or cctld for profit
9. Traffic Junky Domain Owners who generate revenue by simply key words but most of the sites dont do nothing
10. The hoster some domainers buy hostin sites to generate profit
11. The online casino sites and game for $

BUT YOU WANTED TO KNOW ABOUT THE AVERAGE DOMAINER
The average domainer does about half of this untill he or she learns what works best or creates a new style and or craze

Then you said how much do they make i guess it all comes down to the choices theyve chosen
 
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lol

Hi
Thanks to all who posted in this thread.
it was a good throwback read.

so, what's an average domainer look like today?

imo....

Same but 34 years old.

J.
 
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Over three years, I've made a 1,000 dollar profit total but feeling a bit discouraged seeing all the random names going for big money. I guess I need to remember I didn't start with a ton of capital.
 
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There are so many ways to do the domain game.

Many seem to view domains as lottery tickets - they have about the same odds of success.

I've been doing this as a hobby for over 20 years with an average yearly profit in low 5 figures. I have tried lots of different things and had to change my methods over the years to stay consistent. There is a lot of trial and error in this biz that many don't have the mentality or funds to overcome.

While my results are hardly overwhelming, I am probably still way above average as a domainer and I go months and years sometimes without putting much effort into it.

As I start nearing retirement age, I am beginning to scale up to try and make domaining a bigger part of my income, but the game continues to change. Funny part is, a lot of old discarded methods have become profitable again.

Super important to treat domains as a business/investment vehicle, not a get rich quick scheme. Track your metrics.
 
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Over three years, I've made a 1,000 dollar profit total but feeling a bit discouraged seeing all the random names going for big money. I guess I need to remember I didn't start with a ton of capital.
Hi Jason

i'd say,
don't measure your success against others.
what you earn/profit is the fruit, of your labor
and any gains should serve as motivation to continue.

imo...


There are so many ways to do the domain game.

Many seem to view domains as lottery tickets - they have about the same odds of success.

I've been doing this as a hobby for over 20 years with an average yearly profit in low 5 figures. I have tried lots of different things and had to change my methods over the years to stay consistent. There is a lot of trial and error in this biz that many don't have the mentality or funds to overcome.

While my results are hardly overwhelming, I am probably still way above average as a domainer and I go months and years sometimes without putting much effort into it.

As I start nearing retirement age, I am beginning to scale up to try and make domaining a bigger part of my income, but the game continues to change. Funny part is, a lot of old discarded methods have become profitable again.

Super important to treat domains as a business/investment vehicle, not a get rich quick scheme. Track your metrics.
Hi @inforg

that's a nice post!

i agree that there are many ways to approach it and i started domaining on the side as well.

time, is the essence of commonality that we share and in time, we've seen the changes along with events that seem circular... in that they repeat themselves only with different fronts.

as for discarded methods, i still have some old ovt/ ext. lists
:)


imo...
 
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I guess the 'average domainer' consists of mainly those who come into domaining and last about 2 - 3 years as owners of domains.

In the first year they have entered domaining and registered a wide variety of domains 'because' they seemed to make sense at the time.

In the second year the first real hurdle arrives - the dreaded renewal fees! Here is where some will fall out of domaining, suddenly they are asked to pay for the renewals without having made any sales in the first year and therefore their 'dreams' are shattered. (This group I think are those who will buy a lottery ticket with more than a hope of winning but a belief they will win.)

For those that do pay renewal fees at the start of the second year most will refuse to do so again at the next anniversary of renewal fees, to these people they see domaining not now as a business but rather now a shoddy game and they will baulk at the very idea of investing in domains as to them it has become a waste of money.

Now those domainers who instead work at domaining, whether full time or part time, the first 2-3 years I think they treat as an apprentership in the industry, they study domaining, everything from what sells and where, how much for, who buys domains (both other domainers and external non-domaining businesses), they narrow their field/s of interest into which they will generally invest their domaining shekles into, they become ardent listeners and readers of news, are members of forums to pick up trends etc. (and not just domaining forums), these domainers will still 'punt' on registering or even purchasing domain names but be willing to change their mind and write off any investment in these domains should they not hold up to the initial promise (though they will generally try to sell them even at a loss to recoup some of the investment), but this now makes them a different kind of 'average domainer', they are now the 'experienced average domainer'.

So I think the 'experienced average domainer' is someone who no longer talks about their sales generally, someone who has developed interests in a wide variety of topics but a better knowledge than the general population on certain topics that are the essence of the subjects of their portfolio of domains.

The 'experienced average domainer' is neither rich nor poor through their domaining, they are long term investors which are willing to wait for one of their domain seeds to blossom into a magnificent flower which they shall benefit from the sale or development of, and be happy with the result for themselves.

Oh, and one other thing, an 'experienced average domainer' will be thick skinned - for they will have learned to ignore the insulting offers for their domain names from other domainers and wannabe owners of their domains. (I remember getting a derisory offer that literally was 'insulting' from a well known member of the community for a domain of mine, my reply was simple but not rude, I simply asked which minute of which day of which year did he want to rent my domain for, I am glad to say he got the message. :) )
 
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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.

I focus primarily on Brandables priced in the $2-5K range with some outliers in the 5 figure+ range.

I have tried traffic names and I’m not very good at. I have tried some GEO names haven’t been to successful at them. I have had limited success with some exact match names.

My current net sales after commissions counting payments I getting this year from last years sales are $19,591. While this may sound great $27K is what I have to clear to break even on renewal costs. I expect to hit the break even point this year by end of April - Mid May. Then the rest of the year is for profit an taxes.

I still take 100% of my profits and expand my portfolio I do buy some names at auctions, but 95% are from back orders / closeouts / or from names acquired from other Domainers.

The most I have paid for a name thus far is $1602. While I like the idea owning quality names, I also realize I don’t have the capital to buy a bunch of them. So I try to pick up low priced names that are brandable, but after a sale I do try to lever up 1 name sometimes 2 in the $500-$1200 range at auctions.
 
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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.

I focus primarily on Brandables priced in the $2-5K range with some outliers in the 5 figure+ range.

I have tried traffic names and I’m not very good at. I have tried some GEO names haven’t been to successful at them. I have had limited success with some exact match names.

My current net sales after commissions counting payments I getting this year from last years sales are $19,591. While this may sound great $27K is what I have to clear to break even on renewal costs. I expect to hit the break even point this year by end of April - Mid May. Then the rest of the year is for profit an taxes.

I still take 100% of my profits and expand my portfolio I do buy some names at auctions, but 95% are from back orders / closeouts / or from names acquired from other Domainers.

The most I have paid for a name thus far is $1602. While I like the idea owning quality names, I also realize I don’t have the capital to buy a bunch of them. So I try to pick up low priced names that are brandable, but after a sale I do try to lever up 1 name sometimes 2 in the $500-$1200 range at auctions.
You are off to a great start. You should be at the point now where you have enough sales to see what areas you really excel at picking names in. focus on those type of names.

Just a guess, but I think your quickest path to profit is probably to scale down your portfolio some. You know you got some losers in there (we all do) 😀

renewal savings are just as good for reinvestment as new money is.
 
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You are off to a great start. You should be at the point now where you have enough sales to see what areas you really excel at picking names in. focus on those type of names.

Just a guess, but I think your quickest path to profit is probably to scale down your portfolio some. You know you got some losers in there (we all do) 😀

renewal savings are just as good for reinvestment as new money is.
@inforg Thanks for the compliments and advice, you are correct to thin out the junk. I have been doing this more effectively this year starting 90 days to expiration trying to liquidate them via SAV and GD Auctions, Slack for BB and SH names and NameLiquidate when at expiration.

I might need to look further out and identify earlier ones I don’t want to hold, and possibly drop prices some, this I am leary of, I have sold multiple names that I had planned to drop. Most recent was a 3 character alpha-numeric.net. But out of the blue got an email it sold via fast transfer.
 
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I guess the 'average domainer' consists of mainly those who come into domaining and last about 2 - 3 years as owners of domains.
Hi
it seems from other replies, those 2-3 years could represent the "tenure" for the average domainer.
as it may take that length of time to get over the learning curve

Thanks for your assessment!

imo...

I feel like I am an average domainer. I started around July of 2019.
Hi Steve

That was an insightful post, showing both your patience and your stress :)
but it's good to read how you stuck with it and now it is paying off

Thanks for sharing!

imo...

renewal savings are just as good for reinvestment as new money is.
Hi

totally agree,
i've dropped names over the years to trim down the portfolio.
at one time, holding as many as 2500 domains, now down to around 250 or so.

it may reduce the number of lines in the water, but now i don't have to buy as much bait.
:)

imo...
 
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My current net sales after commissions counting payments I getting this year from last years sales are $19,591. While this may sound great $27K is what I have to clear to break even on renewal costs. I expect to hit the break even point this year by end of April - Mid May. Then the rest of the year is for profit an taxes.
Steve, this is great! Thank you for sharing!
Can you please share the selling rate? number of domains sold/total
Is it 1-2% as everybody says?
I'm new to domaining and still looking forward to my first sale (as you've waited till Nov, I hope...). I'm using the appraisal tools (Esti, Saw, GD and Alter) that everybody hates, but I don't have any other compass (for now 🤷‍♀️)
 
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Steve, this is great! Thank you for sharing!
Can you please share the selling rate? number of domains sold/total
Is it 1-2% as everybody says?
I'm new to domaining and still looking forward to my first sale (as you've waited till Nov, I hope...). I'm using the appraisal tools (Esti, Saw, GD and Alter) that everybody hates, but I don't have any other compass (for now 🤷‍♀️)

Time flies in domain world, I completely forgot about this post.

To follow up, I am averaging ~2 retail sales per month. Currently at 15 for the year, average sale price $3688.

Best tool for brandable pricing when starting is BrandBucket current listings. SH too, but ymmv here, many offer names too low others have ability to adjust to infinity so while curated probably not best for figuring pricing.

I think the biggest hurdle to a new domainer is understanding that appraisal tools simply don’t work and can be more of your enemy than friend. But it doesn’t necessarily mean they are all bad.

Godaddy Go value means very little to what domain will sell for retail. But what you can ascertain from it is value of one name relative to another. If your unsure of two names and one has $4200 GoValue the other $1800. Then more than likely the $4200 name is a better name. But neither means the domain should be sold at that price.

Best use scenario either could sell for any price many multiples higher. Your best tool here till you build your own gut instinct are past sales info from places like NameBio, best use scenario like LinkedIn/Crunchbase/GitHub (how many companies pop for your keyword combo), stay up on trends in domain areas you focus on. A low value word today might be high value tomorrow.

To prove this point study Godaddy’s NameFind portfolio. Check there price against there appraisal tool and whoola you will see right away everything is listed higher.

Estibot most don’t understand, their appraisals are always low. But a few times extremely high. First off their system was only designed around traffic names more importantly names with traffic and CPC. Brandable names have neither thus you see 0 most times. Be careful of traffic just because a name once made good sense doesn’t mean it will today (like LaserDisc)

Again don’t focus on price they give but look at the search and CPC info they give and make sure the comps match up. Just use this as a data point as you research the name.

What I do like about it is using for needle in the haystack you can scan large lists at once for possible diamonds in the rough, parse keywords, parse domain names out of any text etc. get bulk Whois info in bulk on entire list.

SAW - really for people with higher quality names, they to me seem to be on low end more often.

Nameworth - I would save my money.
 
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Time flies in domain world, I completely forgot about this post.

To follow up, I am averaging ~2 retail sales per month. Currently at 15 for the year, average sale price $3688.

Best tool for brandable pricing when starting is BrandBucket current listings. SH too, but ymmv here, many offer names too low others have ability to adjust to infinity so while curated probably not best for figuring pricing.

I think the biggest hurdle to a new domainer is understanding that appraisal tools simply don’t work and can be more of your enemy than friend. But it doesn’t necessarily mean they are all bad.

Godaddy Go value means very little to what domain will sell for retail. But what you can ascertain from it is value of one name relative to another. If your unsure of two names and one has $4200 GoValue the other $1800. Then more than likely the $4200 name is a better name. But neither means the domain should be sold at that price.

Best use scenario either could sell for any price many multiples higher. Your best tool here till you build your own gut instinct are past sales info from places like NameBio, best use scenario like LinkedIn/Crunchbase/GitHub (how many companies pop for your keyword combo), stay up on trends in domain areas you focus on. A low value word today might be high value tomorrow.

To prove this point study Godaddy’s NameFind portfolio. Check there price against there appraisal tool and whoola you will see right away everything is listed higher.

Estibot most don’t understand, their appraisals are always low. But a few times extremely high. First off their system was only designed around traffic names more importantly names with traffic and CPC. Brandable names have neither thus you see 0 most times. Be careful of traffic just because a name once made good sense doesn’t mean it will today (like LaserDisc)

Again don’t focus on price they give but look at the search and CPC info they give and make sure the comps match up. Just use this as a data point as you research the name.

What I do like about it is using for needle in the haystack you can scan large lists at once for possible diamonds in the rough, parse keywords, parse domain names out of any text etc. get bulk Whois info in bulk on entire list.

SAW - really for people with higher quality names, they to me seem to be on low end more often.

Nameworth - I would save my money.
Wow, Steve, thanks so much for your time! Appreciate it!
I will reprice my domains. Do you think I should expect an annual sales rate of 1-2%?
It looks like you've figured it out! I'm happy for you! Thanks again for everything!
 
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To follow up, I am averaging ~2 retail sales per month. Currently at 15 for the year, average sale price $3688.
Hi Steve

really appreciate you sharing your perspectives in this thread

Thanks

imo...
 
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Wow, Steve, thanks so much for your time! Appreciate it!
I will reprice my domains. Do you think I should expect an annual sales rate of 1-2%?
It looks like you've figured it out! I'm happy for you! Thanks again for everything!
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.
 
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