Any Domain buyer or seller here?

Discussion in 'Hook Up' started by Nana Trader, Jul 17, 2005.

  1. Does anyone has any experiance in buying and selling
    domains?

    I am thinking of giving it a try? Is it a good business?
    and what % of paricipants make money and what kinda
    returns?
     
  2. murty

    murty

    If you are referring to Internet domains such as x.com or y.net, an interesting but boring concept I should say. I hope you are not referring to trading of internet domains (buying and selling domain names).

    The Internet bubble is over and dont waste time trying to securitize domain names :p
     
  3. Joe

    Joe

    Nana most of the good domains are all taken. It's so easy to change the name to make an new one for registering. apple.com, apples.com.
    Names that are easier to get are those that have spelling mistakes in them, like aople.com the o is next to the p. People that own these domains count on spelling errors to lead people to their products, I am not sure how much money is in this, (it all depends on what your selling, and how easily your name can be misspelled).

    Check out http://michaelmore.com/
    or
    aople.com

    michaelmore is missing 1 o in moore
     
  4. Ebo

    Ebo

    http://pikertrader.com is available.
    It would alleviate most of the excessive bandwidth usage on this site!
     
  5. From your answer, i can see non of you had any
    previous experiance in domain business.

    Let me give you an example of good idea.
    Did you know there are hundreds of thousands cities
    around the world, almost 95% are taken or registered

    Buying "any city name.com" will have demand.

    It's all about idea. registering a domain cost $10 per
    year, and hosting it costs around $75/year (you
    don't have to host it). Good domains go on sell from
    $500 to $100,000 maximum.



    I think it's better to ask my here, largest Domain forum
    on internet


    http://www.dnforum.com/
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  6. Joe

    Joe

    Nana,
    Thanks for the kind words, I think there are many ways to go about the domain name business. The names of city's is just one aspect, where there are many. Just like the real estate business there are many ways to make money on the product.

    Your view of the city names, maybe correct. I have found some examples in the domains
    http://www.cityoforlando.com/
    http://www.cityoflosangeles.com/

    There are other ways to make money, i.e. purchasing expired domain names, then redirecting them to your site. Many people may read an old post on Elite and click on the link to find that the site is no longer there but is now directed to a totally different site. I had this problem once on another site, the link was to a real estate broker that went out of business, the link was changed now a penis enlargement site.

    If you are going to dive deep in the domain name business you may want to look into purchasing a license to register. Your fee's for registering will drop to .25 instead of $10, and you can keep the name up to 10 years without registering again.
    To ICANN:

    * US$2,500 non-refundable application fee, to be submitted with application.
    * US$4,000 yearly accreditation fee.
    * Variable fee (quarterly) paid once you begin registering domain names. This fee represents a portion of ICANN's operating costs.
    * Transaction-based gTLD fee (quarterly). This fee is a flat fee (currently $0.25) charged for each new registration, renewal or transfer. This fee can be billed by the registrar separately on its invoice to the registrant.
    * Please refer to the ICANN Budget for additional details about invoicing, including options for relief and fee caps.

    You must have:

    * US$70,000 in working capital requirement. THIS DOES NOT NEED TO BE PAID TO ICANN; ICANN requires only that you demonstrate (by submitting an independently verified financial statement) that you have at least this much liquid capital (cash or credit) before your ICANN accreditation becomes effective.

    http://www.icann.org/registrars/accreditation-financials.htm
     
  7. birdman

    birdman

    Hi Nana Trader,

    I have over 250 names and over 20 live sites and have been doing this since 99.

    Made more than twice (after expenses) what my day job pays from the live sites last year.

    I have yet to make good returns on my name invetsments yet, but i mainly have just been buying and not looking to sell.

    My last sale a few months ago was for $1000 and I gave $8 for it, but then I know of far better deals.

    http://dnjournal.com/ytd-sales-charts.htm This is year-to-date reported domain sales in the after market. They only list the top 90 and so far this year the biggest was diamond.com for 7.5 million

    http://dnjournal.com/archive/domainsales/2006/Q2-expanded.htm
    this is a link to an expanded version of the first half of 2006 and it covers all sales over $10,000 and it will give you an idea of what to expect.

    They also have links (they being DNJournal) to reported sales for 2005 and 2004. Most likely it's safe to say that most sales in the after market go un-re-ported.

    Nana Trader, you ask "Is it a good business?
    and what % of paricipants make money and what kinda
    returns?"

    The name business is a lot like the financial markets in that you have a huge portion of hopeful, eager-to-learn newbies that probably waste a lot of time and money.

    I could tell you about the lady who kept on trying to sell blue.com for half a million when nearly everyone said she was unrealistic. She sold for her asking price a few weeks ago. But most give up or buy poor names to begin with.

    So it can be good, but most people wash out.

    Bill Gates is quoted as having said, "Domains have and will continue to go up faster than any commodity ever known to man."

    I'm not sure if he actually made the statement and if he did it don't make it so. But I do think it's safe to say that they have enormous potential ... if you have a good strategy.

    Here are a few of the prominent business models for domainers.

    1. Most of the major players only buy what's called type-in traffic names. This means they will buy popular searched keywords in the dot com version since that's what most people search for.

    Exp. - if you bought dogs.com then many people will and do, type dogs.com into their browser address window (instead of using a SE) and will go direct to your domain. Most of these domain owners simply park their domains at one of the many parking services that will show ppc search engine results for your subject and you will generate some revenue determined by how popular your keyword is and how expensive the subject is.

    You can see how an advertiser is willing to pay more for ads relating to forex or insurance than jokes.

    Most of these names sell for 3 to 10 times annual revenue.

    These buyers want traffic and rev.
    No traffic, no revenue, no interest. Best thing you can do is park and provide traffic and rev stats and price at 3 to 10 times annual revenue.

    This is the biggest and surest game out there and some players have tens of thousands of names and really rake in the green. But it's all pretty boring and since it's so measurable, it cost to get in.

    2. The next plan is to buy either un-registered names or lower priced names in the after-market and try to resell for a big profit after holding them long term (maybe 1 to 10 years).

    Now some prefer to pay around $30,000 for a premium brandable name and then some prefer to pay $100 to $1000 in the after-market for previously registered names.

    There are several good places to sell your names, there's:
    Moniker
    Sedo
    and my personal favorite http://afternic.com
    Afternic even has a page showing all of their recent completed sales.

    This page is a few of my names for sale
    http://www.afternic.com/names.php?best=1&u=44301

    Truth is, I'm tired of the name game and will soon be posting about 200 names at Afternic at cheap prices. I just have too many things going on.

    3. The third and final opportunity i was going to mention was buying unregistered names of goods and services that are geo-targeted.

    Just go thru the yellow pages and combine goods and services with city names.

    I recently did this and bout the top 90 most popular searched names for Americas largest cities - the 90 unregistered ones that is.

    It works like this
    http://inventory.overture.com/d/searchinventory/suggestion/
    this keyword tool will show you how often a search term was searched for last month at Yahoo.
    Enter any big city, Dallas, Detroit, Tampa and see what goods and services are searched for most often.

    Or try some service and see which cities search for it most:
    Mortgage
    Tree Service
    Veternarian
    Eye Glasses

    I'll copy the results for tree service below. Bear in mind that this tool does not always show the correct word order.

    Blue widgets may be the most searched for kind of widget and it may show "widgets blue." It also lumps singular and plural results together and it will lump together some similar catagories like
    auto insurance with car insurance

    if you really need more info on better tools, i can supply it. Keep in mind that MSN will usuall have a few less searches and Google a few more so your total estimated searches last month at the top 3 SEs will be approx 3times this number.

    One day phone books will be something we used back in the olden days. The comong migration to local search practices makes geo-targetd names a good investment. This plan shows you how to identify which industries are already well within it.

    Actually there is a 4th plan, i won't cover it here for room, but it's international domains. The folks in canada are likely to type in dogs.ca and russians dogs.ru

    I'm showing results for tree service in a moment but first here a good forum for names http://www.namepros.com/ it has it's share of mis-information but it's interesting none the less.

    If you would like to buy a huge portfolio, say 100 or 200 names, I think i can put one togeteher that would be priced attractivly (since I want out) one that you couldn't pass up. After you become familiar with the biz, pm me if you are interested.

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  8. I made this thread 12 months ago, After doing little research i came to know domain selling isn't for me.
     
  9. what made you decide its not for you?
     
  10. #10     Jul 31, 2006