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What is the best way to buy a portfolio?

Labeled as discuss in General Domain Discussion started by MapleDots, May 30, 2019.

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  1. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

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    With all the talk about uni buying domainers portfolios, it got me to thinking what is the best way to actually buy a portfolio. I see some members have also opened topics soliciting the purchase of portfolios. So outside of the monetary issue, let's say an agreement is reached, what is actually the ideal way to buy an entire portfolio? So domainer A sells domainer B a sum of 500 domains.

    In most cases that is quite a task and even if one somehow finds a way to automate pushing or entering of the transfer codes the task can still take up a considerable amount of time.

    My ideal way to purchase someone's portfolio is to take over their godaddy account. Simply change the login and all information associated with the account and then mass change the whois and nameservers to mine.

    That would be ideal.

    Now for reality.....

    Most domainers have many registrar accounts with many different logins so short of transfer codes there is really not an effective way to move hundreds of domains from one account to another.

    I remember purchasing over 100 domains because I basically wanted a select few of them. I never bothered changing anything from the other domains, I had what I wanted and the rest was just waste to me so I did not care what happened to them. The idea of moving over a hundred domains didn't much appeal to me and was not a task I felt like working on.

    So outside of the purchase of a portfolio, what are the logistics in moving that many domains?
    As a domainer if you were to buy 500 domains from someone how would you facilitate the transfer process?
     
    Last edited: May 30, 2019
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  2. Andrew Knox

    Andrew Knox Upgraded Member Gold Account VIP

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    I'd get the seller to send me a spreadsheet with each domain in column A and the associated auth code in column B and then bulk transfer to Dynadot.. The work would be on the seller's side imo. I can't imagine trying to transfer 500 domains from some registrars 😱
     
  3. CJ6

    CJ6 My favorite movies are too offensive now. Whimps. VIP

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    Just send me a good offer. 😁
    We'd work it out.
     
  4. lock

    lock Traffic.tools VIP

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    Best way well I will twist that to best portfolio for money. Eg someone has 500 crypto domains vs someone with random domains. Do you buy a share of an industry some good better best or a list with handful of gems? Could domain keyword portfolios turn into a real share of an industry?
     
    Last edited: May 30, 2019
  5. Trevor Swett

    Trevor Swett Trevor Swett, Principal of Digitrend Domains Gold Account

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    This is a great topic and the replies so far have shed a lot of light on it! :-D

    Has anyone out there already made a decision to sell a portfolio either to another investor or to a registry? As far as I know, Uniregistry is the only one that is offering that currently (although I may well be wrong about it!)

    Cheers.
     
  6. CJ6

    CJ6 My favorite movies are too offensive now. Whimps. VIP

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    I'd be happy to sell my portfolio, provided I got an offer that I couldn't refuse. 😁
     
  7. xynames

    xynames XYNames.com PRO VIP

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    The problem is that those offering entire domain portfolios for sale are not calculating a value based on net or even gross revenues. If I’m bringing in 10k net a month and it’s rock solid and it’s going to keep up for thirty years or some such I can justify - what - a multiplier of 8 - 10 at most - meaning a valuation of say $1M.

    But here at NP we got guys who are netting about nothing each month maybe even losing most months who based on the alleged intrinsic value of their domains claim million dollar valuations for their portfolios.

    Which is why these deals with non-business heads rarely close - calculated valuations between buyer and seller are usually too far apart.

    We don’t even get to logistics as the numbers rarely make sense
     
    Last edited: Jun 3, 2019
  8. Recons.Com

    Recons.Com Top Member VIP

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    8-10 multiplier is unrealistic for domains, given the level of risk.

    If someone were to expect 20% return, then the multiple would be 5 times.

    Now, about transfer. If a portfolio is large enough and is at GD, then basically I expect that the dedicated sale rep will help with moving the names bulk to another account. Or actually, the seller could create another account, push the names there, change just email without triggering the lock and pass the control of that account to the buyer.
     
  9. xynames

    xynames XYNames.com PRO VIP

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    Keep in mind that the multiplier based on gross profit is different from the multiplier used against net.

    In any case most portfolios being offered at NP are non performing ones with little or no consistent profit.
     
    Last edited: Jun 3, 2019
  10. The idea of taking over the account is never bad. With GoDaddy domains Sedo would always create a new GoDaddy account, have you push the name to it, and then just give that account (with the new domain inside) to the buyer. For me personally, I would maybe ask the seller (as part of the agreement) to create a new GoDaddy account, push all of the domains into it, and then give me the login details. The biggest problem becomes selling hundreds of domains in a portfolio from different registrars. I think that process is just like you said - time consuming, and there's no real way around it...
     

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