Pricing and Profits; Threading the Eye of the Needle

Everybody knows that if we price our domains too high, they won’t sell and we’ll go bankrupt, right? Well not everybody. As newbies we think we’ve struck gold with hand-regged domains like SandpaperSusan.com and we list them for sale at 5 figures. After a year when it hasn’t sold we feel foolish and change it to a bargain price of $50. After a month, when it still hasn’t sold, we’re at our wits end.

The art and science of domain pricing is a crucial factor in the management of our portfolio. It can make or break our business. I feel it’s one of the most under-recognized factors in the, domain profitability, equation.
(more…)

Read More

Domain Renewals: The Silent Killer

If you are buying domains and you say to yourself that you will hold it for a year and then decide to renew, you are buying the WRONG ones.
Rick Schwartz

One of the great joys of domaining is waking up and seeing the words, Your Domain Has Sold!, in your inbox. There’s nothing better than earning several hundred, or even several thousand, dollars while we’re sleeping. But there’s another, more insidious, process that also occurs while we sleep. It’s the silent cancer that eats away at the money in our pocket and it’s called, domain renewals.

Every day the clock is ticking on the hundreds (or thousands) of domains we own. Renewal fees come due night after night. For every thousand domains in our portfolio the annual renewal cost is about $8,000 per year. That’s $666 per month or about $22 a day. Yikes!

With numbers like that we’ve gotta be careful and make sure our portfolio is a clean, lean selling machine with no dead weight. Otherwise renewal costs will eat our profits faster than an African tapeworm. So how do we avoid that?
(more…)

Read More

What’s Selling at the Brandable Marketplaces?

Do you like data? I do. In fact, I think I’m an information pack rat.

Because every time someone reports a brandable domain sale in a conversation, at a forum, in an email or even on a brandable platform itself, I write it down. I’m keepin’ a list. Checkin’ it twice. And trying to find out what’s hot and what’s not.

Over the past several months I’ve accumulated a log of 349 recently reported sales from three different brandable marketplaces. I’ve looked them over and here’s what I’ve learned. (more…)

Read More

The Brandable Insider: Where Do We Go from Here?

I feel the biggest hurdle to considering domain names as legitimate assets is how discretionary (random) prices are. In 2010, you could find two-letter .com domains that sold for around $100,000 (JF.com, XI.com and SZ.com) and one domain for $8 million (FB.com). That is an 8,000% difference!Giuseppe Graziano, GGRG.com

Despite two decades of conventions and commerce, domaining is still in the latter part of its Wild Wild West stage. Why? Well one reason is because the market is so fragmented. There are at least a dozen different marketplaces all with different rules, terms and procedures. Until there is a centralized organization that all markets report to and that requires an agreed upon, standardized set of rules and conditions, for all transactions, that will remain the case.
(more…)

Read More

The Brandable Insider: Slinq.com, Zunky.com, TheLearningSpace.com

I haven’t done a recently-sold review in a while so I thought now would be a good time. I’ve picked an array of names, in different styles and genres. All of them sold for under $600. For each one I’ve given my thoughts on why I think the name works and what industries it might be used for.

In most cases, I think these names sold at higher than “normal” prices which is great for the sellers, not so good for the buyers. What’s interesting about that though, is that people like Rick Schwartz and Drew Rosener say that while the low end of the aftermarket is currently way overpriced, many high end domains, particularly 3Ls, are going at bargain prices. Go figure. Here’s the names.
(more…)

Read More

The Brandable Domainer: Hand Reg to Sale in Two Weeks

The way most people want to negotiate in an email. They want to lay out their whole game plan and their chain of logic. What happens in that static communication is the reader gets a chance to look at where the email starts and where the email ends and they get to sit there and stare at it. Then if they don’t like where it ends they just move back, four or five moves, and take off in a different direction. So my first recommendation is to make one move at a time in an email.Chris Voss, Author of Never Split The Difference

A couple of years ago I hand regged a domain and sold it two weeks later. Doron says our readers really like to hear the details of successful domain sales. Even the small ones. So I’m gonna give the details of this one for you. As I’ve done before I’m going to publish the exact content of the emails so you can read and analyze them for yourself.

Domaining like everything else in life is a learning experience. Looking back at the emails I see some things I did well and some areas where I made mistakes or could have done better. Hopefully you can learn from them too.  (more…)

Read More

The Brandable Insider: How to Find Good Domains for Hand Registration

“Want to be successful in the domain business? Don’t piss your money away”Michael Berkens

Every year it becomes increasingly more difficult and time consuming to find saleable brandable domains that are available for hand registration. It’s now so laborious, that its value for domainers that have good paying jobs and/or enough funds to purchase quality domains in the aftermarket, is questionable. However, as I mentioned in last week’s blog, if you have the time (maybe you’re unemployed) and enjoy spending hour after hour “panning for brandable gold” here are some tips on how to find good brandables.
(more…)

Read More

The Brandable Insider: Hand Reg Is Dead. Or Is It?

The big $$ is with the end user. You have to be patient and position yourself with a commercial location to be in THEIR PATH.Rick Schwartz, the Domain King

I wish I had a dollar for every time I’ve heard someone say hand reg is dead. I don’t think it’s true. I’ve sold a few dozen hand registered brandable domains over the past two years for prices between $2k and $3k. Was it easy? No. Did it require hundreds of hours of hard work? Yes. Was it worth it? Well…..maybe.

Domainers can still hand reg saleable brandable domains but it’s becoming increasingly difficult and very, very time consuming. To make matters worse, only a tiny percentage of what we reg and renew will sell to an end user in any given year.
(more…)

Read More

The Brandable Insider: From $19 Purchase to $4k Sale in 6 Months

When I BUY a domain I put a value on it and I stick with that value. PERIOD! Offers much lower than my value MEAN NOTHING!!Rick Schwartz

In October 2016 I acquired a strong brandable in the Go Daddy closeouts. I was very surprised that no one had bid on it and I bought it immediately. About 6 months later, I got an email from someone who was interested in buying it.

Now……….. whenever I get an inquiry on a domain, the very first thing I do, is research the person making the inquiry. I don’t respond to their email until I have some intel on the ID of the potential buyer. Why? Because my sale price and negotiation strategy may vary greatly depending on the identity of the person wanting to buy the domain.
(more…)

Read More

The Brandable Insider: Lower Commissions and New Programs at BrandBucket

Good news for owners of premium brandables who are looking for boutique, enduser sale prices on their domains. BrandBucket, announced today that it’s reducing commissions for high end sales. According to Managing Director, Michael Krell:

“Over the last year we have received many requests from buyers for premium names over $50K, but haven’t had the inventory to fulfill this demand. In an effort to attract the best names to our marketplace, we will be reducing the commission rate for names priced above $50K. Effective immediately, our commission rate for names priced $50K-$99K will be 20% and names priced $100K and over will be 15%. This change will apply to both current and future names on the marketplace.”

(more…)

Read More