Most domains are just like lottery tickets… Dude!


Domaining is very similar to playing the lottery but ultimately the end-result depends on your ability to shop around the domain during a set time frame and hopefully get it sold one way or another. How much? Whatever you can get… The market will set the price. You always hear all this talk about end-users all the freakin time… Blah!!

They rarely come knocking on your door, and you simply cannot rely on that as your main source of income. Especially not for your hand regged domains. Those are long shots… Dude. Get real! Unless your name is Frank Schilling or Kevin Ham who got end-users all up their ass 24/7/365… Your domains are long-shot lottery tickets, and  not even the most promising ones at that  ;)

Look, it does happen… You can get lucky a lot more than once or twice in this game if you have the right keyword domains, but you gotta put in the hard work to be truly successful. I see most domains exactly as lottery tickets, with yearly expiration dates and an easy given option to renew if so desired. Most domains I buy I usually try to flip within a couple of month’s nowadays. I am not in this for the long run.

So when I get an “end-user” contact me out of nowhere for a hand regged domain such as LAXSTORE DOT NET the other week, I say “$499 and it’s all yours” and a few days later we have a done deal. Literally 5 minutes of work involving a few e-mail communications… You take the money, forget about that domain and move on-to the next deal.

Then I had another “end-user” sale last week from a guy who inquired about AVVA DOT NET. We bargained a bit back and forth, but ultimately met somewhere in the middle and made the deal happen at $800. It took a bit of hand holding to get the transfer completed as it sometimes does with people who aren’t that technical or familiar with the process, but probably 20 mins total of work put in… Still, not a bad result right?

The end-users are definitely out there, for all kinds of domains… Even .net, which is often overlooked by many domainers who call themselves pros… Problem is I don’t know too many domainers that make a lot of money or most of their money on end user sales because there isn’t a ton of them.

It’s up-to you to make the most of your domains, and that is done by marketing and listing them everywhere where it makes sense to. So what that it didn’t sell first or second time around and it’s been a few month’s? You try again next month, and then next month… You have one year. It’s a different pool of buyers every day pretty much. So if you do have a good domain, keep going at it. Don’t give up… But if you do not get any action, in other words not even a lowball offer or maybe even a trade… Well, that means you got crap. When the renewal time comes around, you should know what to do :)

12 comments total

  • I have to admit…. very well said

  • Following the logic of the above well-written article, the results and profits that you are able to generate selling domain names are a direct result of the amount of work you put it.
    Each day, I personally send no fewer than 1,500 emails to end users. I market daily about 5-10 keyword domains. This consequently results in a large portion of end user sales being closed month-in, month-out.
    The more seeds you plant on a daily/weekly, the greater the harvest/rewards/ROI will inevitably be.
    Each distributed seed should be regarded as a single opportunity that could blossom and bear fruit in due time.

  • I have found that end user sales at those prices end users are willing to pay and the names are normally easy sells.


  • Time Machine

    Yes and No.

    A wise man must discern between that which brings him immediate gratification and that which will appreciate in value over time.

    Just as the skilled captain learns to navigate his ship through storms, thus circumnavigating the sea of shit.

  • Well you pretty much summed up my business plan in this post. I almost never turn down an offer. I came late to this game and figure enduser sales is where it is at. Sure beats selling used cars!

    Thanks for the post.

    Joey Starkey
    Memphis Domain Broker

  • Be Your Own Realtor.
    Great Article.

  • Yes lottery tickets!

    We calculated the average to sell a CVCV.com like the ones listed at Catchy.com and for such price without any promotion, just holding and waitting a buyer is +25 years!

    It’s here a single example that outline that more domains you own and more chances to sell. It’s mathematical, most of the repetitive sales you see are from domainers having a huge portfolio, if you have +50,000 domains then sure, you get offers everyday. The only thing you can do if you just own a small portfolio is buy wisely names with a high demand, otherwise you are lost!

  • Nice Post… Like this quality of posts.
    I agree totally.
    If everyone behaved realistically when selling domains, and not try to walk around thinking he got a rare jewel in his treasure portfolio, the market of domain names will get as serious as the Forex market; more people will hop in, and with time, it might just get as liquidable as well.
    More earthly standards = more trust = better market…

    Regards
    Chadi Ghaith

  • Well said – and sometimes you hit it lucky when you buy a name that isn’t quite ‘keyword’ – just something that hit you as a possibility. I bought such a ticket a few years ago called princewilliamandkate.com – and FINALLY they got engaged!
    Sometimes I’m astounded at ‘out of the blue’ offers for domains that I didn’t consider that valuable.
    Who knew there was more than one definition for MILF?
    I’m a very small domainer, bought most of my domains years ago.
    Got to love this business.

  • Great article. It’s rare that domain investors tell it how it is. I write articles on the real deal. You’re definitely right about the keyword domains. I picked up many resume, job, and education domains.

    Job, taxi and movie domains have produced the most sales. Another good tip is to offer a simlar domain to a past buyer. More than likely they may purchase additional domains. Resume and cover letter domains are good for clicks.

    Exact product .com and .net are good for clicks. However, many are not consistent enough to make the determination whether to keep or let them drop. What if the domain never produced a click, but then it does a week before expiration. It’s a tough process to decide on renewing domains. Monitor the type of traffic. Sell domains in package deals to move your inventory. Thanks.

  • @federer – if you don’t mind me asking where do you get the names for these 1500 emails? Do you have a list, subscribe to a service or what?

    thanks,
    Jonathan

  • I cant stand it, I am tapping out this industry. I step into this industry last year when I lost my job, I create bunch of domains and buy some inexpensive domain. Most below $100, and non-of them were sell. I contact some end user and never get any reply. Should I do cold calling to the store/company. But most of them already own a website and/or a domain, there’s no point to purchase another domain if the comany already, should I contact the mini grocery store, it seems pointless and weird…..

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