experience

Pricing and Profits; Threading the Eye of the Needle

Keith deBoer 1 Comment

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.
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Domain Renewals: The Silent Killer

Keith deBoer 18 Comments

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

Keith deBoer 6 Comments

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

Keith deBoer 8 Comments

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.
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The Brandable Insider: The Secret Path to Profits (Part II)

Keith deBoer 8 Comments

“Don’t be romantic about your domains. Don’t fall in love with them. You’re not a collector of domain names, you’re an investor.” – Michael Cyger at DNAcademy

Last week we talked about money management and its crucial impact on our success as domainers. Small changes in money management can make or break our business. One of the biggest mistakes we make as domainers is renewing domains that have little chance of selling in the next one or two years.

If you had zero end user sales last year then renewals will likely take you further into the hole. If you had a few sales then renewals can still significantly erode your profits. So it’s a fine line to walk.
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The Brandable Insider: The Secret Path to Profits

Keith deBoer 10 Comments

“Domaining is a hard industry, very few make money but many like to pretend that they do.” – Morgan Linton, Co-founder of Fashion Metric

I like to play poker. No-Limit Hold’em to be precise. But I’m an average player and I don’t play very often. However, despite my shortcomings, over the past 10 years, I’ve won more money than I’ve lost. How can I say that? Because I have an Excel spreadsheet to prove it.

What’s the secret to my success? Well that’s easy. Smart money management. Huh? Let me explain.

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The Brandable Insider: Failing at Domain Auctions

Keith deBoer 27 Comments

Success often starts with failure and I have failed many times this year. Some of my failures have been in auctions. There are many times I’ve bid and lost. Most of the time, that’s a good thing. It demonstrates my ability to limit my bidding and not go past my limit. Or as Mike Mann says: “If you beat me in the domain auction, congrats, you paid too much.” Well I’m not as cocky as Mike Mann but I do think disciplined limits when bidding is a good thing. Whether the person that outbid you “paid too much” or not is debatable. That depends on, if and when, and for how much they sell it.

On the other hand we’ve all had the experience of getting into a bidding war and letting our emotions run away with us. In those situations we go past our price limit and end up paying more than we thought the domain was worth. I’ve also had the experience where, in hindsight, I was too cheap and failed to step up and pay the price the domain was worth.

In looking back at recent auctions I see all of these scenarios at work.
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The Brandable Insider: Looking Back on the Year in Domaining

Keith deBoer 5 Comments

We’re coming to the end of another calendar year. Time to look back and assess what went on in the domain industry. I thought one interesting way to do that would be to look back at what leaders in our industry said a year ago. If you remember, our friend Domain Shane, was kind enough to organize and publish (here and here) the ruminations of several domain industry leaders back in December of 2015. They gave their thoughts on what might be in store for 2016.

Here are some of the things they said. Keep in mind that these folks made their comments in the last month of 2015, right at the height of the CHIP market frenzy. Let me know in the comment section who you think had the most accurate crystal ball for 2016. Ok, here we go………

Andy Booth said:

    I think it’s safe to say that trend sectors (like short and numeric dot-com) will almost certainly be at a higher point come the end of the year. I would invest in special 4 letter domains with a pattern (AABB, ABAB, ABBB, AAAB) or raise a little more cash (go in with a couple of friends) to buy a 4 number dot-com.

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The Brandable Insider: How to Negotiate as If Your Life Depended on It

Keith deBoer 2 Comments

I just read a book called: Never Split The Difference. It’s written by an International, FBI hostage negotiator. The author, Chris Voss, tells how he successfully negotiated with Islamic radicals and American bank robbers when people’s lives were at stake. From those gripping stories he draws simple, yet profound, lessons for negotiating everything from a pay raise to a million dollar contract with a multinational corporation.

Voss now works in the private sector teaching college courses and running a business consultancy called The Black Swan Group. He teaches easy steps for enhanced negotiation outcomes. The place where many fail, according to Voss, is when they allow their emotions to take over and sabotage their plans. To avoid this he teaches his students how to develop focused listening skills and measured responses that gain the trust and cooperation of the person on the other side of the deal.

One main principle comes from the book’s title. According to Voss, splitting the difference is for losers because it leaves too much money on the table.
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The Brandable Insider: Tips and Tricks for the BrandBucket Marketplace

Keith deBoer 5 Comments

Its been two years since I started building my portfolio at the BrandBucket marketplace. I thought it might be a good time to share some of the things I’ve learned. Keep in mind that my tips are specifically about BrandBucket and may or may not apply to the brandable space in general. Also, they are subject to change as I continue to learn and the BrandBucket market niche evolves.

Lastly, these are my personal opinions and best guesses, not official BrandBucket guidelines that I’ve been given. As a Brand Ambassador I receive a finite number of BrandBucket listing credits each month. This is compensation for writing two monthly articles for their website and helping new sellers interact with the platform and develop their branding skills. Everything else is pretty much the same for me as it is with other sellers. Alright let’s dig in.

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