What is an end user and a reseller?

[VersedMocha]

Hello, I am new to the domain flipping industry, as you can probably tell by the topic title.
I have been seeing the phrases "end user" and "reseller" in domain appraisal threads, and have been wondering what they are. I have a vague idea, but I would like to know 100% for sure.
Thanks for helping out this noob! :hearts:

 

[SpareDomains]

Hello, I am new to the domain flipping industry, as you can probably tell by the topic title.
I have been seeing the phrases "end user" and "reseller" in domain appraisal threads, and have been wondering what they are. I have a vague idea, but I would like to know 100% for sure.
Thanks for helping out this noob! :hearts:

Reseller means someone like me or any other domainer at this forum. You buy a domain for $8 and then flip it to me or them for $10, $20, $30, $40, $50 etc...

I sit on the domain for 1-5 years and I sell it to someone in the 1-10k range that actually has a business the domain could be used for=end user.

Reseller Business Model=buy a bunch of domains, flip for small profits and repeat, more sales but more work since profit margin is small you have to continually flip.

End User Business Model= more picky on acquistions, patience to hold for the right buyer, less sales but less work since profit margin is substantially higher you don't need to sell as many, handful of end user sales a year could equal more than 100+ flips, having quality domains that make business sense makes end user type sales easier.

 

[VersedMocha]

Ah, I get it now. Thank you for replying!

 

[biggie]

reseller > sells domains


end-user > is the person/entity/company, that develops the domain into viable website.


reseller and end-user, can also be same

some resellers can, will and have, paid what other 'resellers' may consider to be 'end-user' prices for domains.

imo....

 

[Keral_Patel]

End users can even be resellers if they sell it to someone else :D

 

[DnEbook]

welcome, you are off to a good start by asking questions, see my signature line for more info all together

 

[LaunchUp.com]

Ah, I get it now. Thank you for replying!

Just to clarify, reseller is not always buying names for peanuts. Reseller simply means you buy names with the intention to resell it, rather than develop it. As long as you're getting a deal on a name, that name can make good profit (It doesn't need to be $25) unless that is your business strategy. But don't buy into the idea of giving away names for peanuts or expecting to buy names for peanuts. Buy low sell high is a basic business concept.. but low doesn't always mean for nothing. Low could simply mean, paying below what the name is actually worth so if you resell, you can make decent profit. So don't try to buy food.com for $25. I know you're thinking this should be common sense, but common sense isn't always common.