NameSilo

What kind of ROI to expect when reselling to other domainers?

Located in Domain Beginners, started by Blues Brother, Feb 21, 2021

Replies:
10
Views:
412

  1. Blues Brother

    Blues Brother Established Member

    Posts:
    24
    Likes Received:
    52
    Hi guys,

    I'm new to domain investing. I think buying a domain and reselling it to another domainer is more realistic for me at this point in the game.

    My plan is to drop catch a domain for $100 and resell it for $150 for a 50% ROI.

    How common is this scenario? Is a 50% ROI too high when reselling?

    Thanks
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. DigitalRoar

    DigitalRoar Investor & Creator VIP Gold Account

    Posts:
    1,659
    Likes Received:
    1,541
    Just wondering how are you new but you joined in 2013?
     
  3. DigitalRoar

    DigitalRoar Investor & Creator VIP Gold Account

    Posts:
    1,659
    Likes Received:
    1,541
    To answer your question though you'll have to deal with lowballers so don't expect much.
     
  4. Lord Antares

    Lord Antares Top Contributor VIP

    Posts:
    1,730
    Likes Received:
    1,305
    This question is pretty much impossible to answer.

    It happens all the time, many people do it but in order to profit from domainers, you need to understand the value of domains first.

    You can't arbitrarily decide to pay 100 for a domain and sell it for 150. You need to know that you will make a profit on it.

    A noob is more likely to lose money on an attempted flip until he becomes more experienced.
     
  5. Blues Brother

    Blues Brother Established Member

    Posts:
    24
    Likes Received:
    52
    I joined the forum in 2013 but I think I started buying domains back in 2008. I was doing what many of the inexperienced domainers do, which is hand register 30 crappy domains, thinking I had struck gold. I have yet to successfully sell a domain though. I put domaining on the back burner and forgot about it. I wish I hadn't though.
     
  6. boker

    boker Top Contributor VIP

    Posts:
    12,249
    Likes Received:
    2,305
    If you can't hand reg one good domain out of the 30 crappy one's, you will not be able to do it properly by dropcatching either. You could be lucky one every ten domains, but the other 9 will eat all your profit. First you need to learn what is good and what's not through exercise, either buying cheap and selling cheap or just test the waters, in a demo way, without properly buying.
     
  7. AEProgram

    AEProgram Top Contributor VIP Blue Account

    Posts:
    1,765
    Likes Received:
    3,502
    Great question, if you look at the section on this forum where names are sold you will see that selling to domainers is not good price wise. Best is to buy names that are attractive to businesses that do not mind investing money in domains.
     
  8. du6262

    du6262 Established Member

    Posts:
    953
    Likes Received:
    983
    • Generally charge 15%-20% on the line
     
  9. Blues Brother

    Blues Brother Established Member

    Posts:
    24
    Likes Received:
    52
    thanks for your response. what kind of domains do businesses like? do they like brandable domains? or do they prefer exact match keyword domains?
     
  10. tupungato

    tupungato Wizard VIP

    Posts:
    1,226
    Likes Received:
    962
    50% loss is more likely.
     
  11. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

    Posts:
    10,699
    Likes Received:
    11,875
    Hi

    i started by buying and reselling to other domainers.
    by doing so, it helped to establish myself in the community, and build a reputation thru positive trader feedback and discussion participation.

    other domainers got to know me or knew who i was.

    now, if you check posts by members here outside this section, where you can see their "trader rating",
    then you will see how many are buying and reselling to each other...
    and within that circle of trade, there are some domains that make it out of rotation and many of them get sold to end-users.

    imo....


    as for profit margins or roi, no 50% is not too high.

    many companies profit margins per unit, aren't that high
    so, be happy if you strive for that or higher.

    for someone with low budget
    if you can hand register a domain for $10 and resell for $25, before renewal time, that's very high return

    the basic variables are:
    the quality, of domains you register/purchase
    the price of each registration/or aftermarket purchase
    the amount of time it takes to sell each domain

    imo....
     
    Last edited: Feb 22, 2021

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
NameWorth
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...