Brandable Insider Domain Review #12 – End User Sales

Podcast: Aftermarket sales at GoDaddy, NameJet, DropCatch and Flippa. Plus a reverse engineering of recent End User sales at Sedo and BuyDomains.

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Domains in this review include:

7 thoughts on “Brandable Insider Domain Review #12 – End User Sales”

  1. Pingback: Brandable Insider Domain Review #12 – End User Sales – Cupid Name

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    1. Hey Mike, Good question. The point I was trying to make is that the wholesale price of $1200 was too high since the likely retail price is around $4,000 to $6,000 and that’s not a very good mark up for a domainer who has hundreds or thousand of other domains that are not selling and require annual regeneration fees.

      1. Cool. I see now, thanks. I keep looking at all those statements from people saying they own thousands of domains. Surely it’s a major task just to administer them efficiently, let alone to keep up with the maintenance costs.

        Domaining is still relatively in its infancy and spreads are likely to narrow over the coming years as it matures. Wouldn’t holders of very large numbers of domains, whatever the future may hold, be better off putting more effort and learning into sales efforts and slimming down, rather than continually spending so much time and profit dilution on purchasing? i.e. more sales, more selective buying. Maybe a discussion for another day.

        1. Yes, a larger folio is obviously more work. But each has its advantages. Michael Cyger is well known for his tight portfolio of around 40 domains. But he only has one sale per year on average. It’s usually a five or six figure sale but it’s just one. Other domainers have several hundred or several thousand domains and have multiple sales per month in the $2k to $20k range. Margins vary. On lower price domains profit is smaller but the ROI can be 50x to 100X. Higher priced sales happen less often, have a smaller buyer pool and have a much bigger profit but the ROI is usually more like 5X to 20X. If wholesale prices rise and retail prices stall then yes ROI will change. It’s an evolving market and successful domainers adjust according to their domaing style and business model.

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