Archive for the ‘Domain Monetization’ Category

From $1,000 offer to a $7,500 sale and another $4,500 sale

Hello and Assalamo Alaikum,

Like many of us are noticing the number of inquiries and sales are on slow side and it’s been the case for quiet some time now. As the regular readers of this blog knows I stopped outbound marketing at the very beginning of 2014 until last month of this year. However, I recently started again for low quality domains to sell them and buy some higher quality of domains.

Both the recent sales were inbound sales. First sale was of Ravan.com whose initial inquiry came in Jan 2017 with $1,000 starting offer. I countered with 20K and after exchanging several emails, buyer finally stopped at 5K. I declined and later forwarded the lead to Uniregistry broker and we ended up having $7,500. I acquired this domain in 2013.

Another sale was JonathanLee.com which I had put up BIN for $6,888 at Afternic but received an offer of $4,500 through Afternic. I countered with $5,888 but eventually accepted the initial and max offer presented by buyer of $4,500.

Although I like investing in 1-2 word person names and both above sales were person names but it’s really been difficult to sell them like we can move on with brandables, products and service related domains. I would especially suggest to newbies not to invest in person names heavily and focus on other types mentioned earlier.

Both domains were acquired in 3 figures in total so it was a great ROI. Like many of you ask how much I paid for my sold domains, so let me share this time with you. I paid $485 for JonathanLee.com in 2014.

Feel free to give your feedback and if you like to share your recent sales.

From $2,000 offer to a $12,500 sale

Hello and Assalamo Alaikum,

It’s been great year so far in terms of $$$ of sales but the number of sales are very poor but I would say overall it’s fantastic.

So here is another sale which I wanted to share. Many readers asked me the purchase price or at least the price range I should share so I have decided to disclose the price range. Normally I don’t share because buyer might feel I overpaid considering the ROI made by the seller.

Anyhow, the domain in question is Enkla.com which I sold for $12,500. Bought in 3 figs range. Buyer came directly through WHOIS and offered 2K when I asked to present an offer. When I said offers only in 5 figs will be entertained, they came up with 3K and 3.6K. With no positive response from my end, they revised their offer and presented 10K. My next move was to shift from giving the price range to quoting the exact asking price which was 15K. Finally the deal was finalized at 12.5K which was the middle of both our quote and offered prices.

from-2000-offer-to-a-12500-sale

During the entire process, I was *NOT* happy with Escrow.com for the first time through which the deal was completed. For more detail about this, I will share it in one of my next posts.

As always your feedback, suggestion and/or criticism is welcome so feel free to shoot one 😉

From $23,000 offer to a $24,000 sale

Hello and Assalamo Alaikum,

It’s been some time I published my last post but that was due to guests at my place and was on little tour of hilly areas in my country. It seems I am back in action now 😉

Looking at the post title, one would definitely wonder that when I got starting offer of $23,000, why did I settle for 1K extra and sold it. Let me unfold the story for you…

From $23,000 offer to a $24,000 sale

The domain in question is 43Things.com which was nothing but a parking revenue generating from around 750,000 backlinks! It’s been making hundred of dollars every month for me and I had plan to sell this domain for at least 20K. I once listed in GoDaddy Auctions but didn’t meet the reserves and someone contacted me privately during that time and offered up to $10,000 which I happily declined.

Last month the buyer (current owner) of 43Things.com contacted and asked if this domain is up for sale and what I am looking for. As always, I asked the buyer to present his offer and it came out healthy one $23,000. I countered with $25,000 because I don’t usually quote high price when I get a decent opening offer and always price out what I actually would ask other buyers.

He countered with $24,000 which I accepted. This guy was really cool to deal with and he did wire the payment at Escrow.com within 24 hours of his first email of inquiry! Within 2 days the entire deal was completed except Escrow.com to verify transaction and release funds.

It was my 7th sale of the year and another 5 figure sale of 2016. Going great in terms of generating cash flow but number of sales are disappointing. Overall, it’s been fantastic year.

Feel free to give your feedback and share your recent sales.

From $1,000 offer to a $28,000 sale

Hello and Assalamo Alaikum,

It’s been a while since I discussed my last domain sale. As everyone knows we are in the middle of this year and my target to make 20-24 sales per year is quite far away right now. This is my 6th sale of this year and I am not happy with the number of sales but what I can say is the total revenue generated is great so far but numbers of sales are not up to the mark.

What I have also noticed is the number of inquiries since the beginning of 2016, which has been on the low side. I have discussed this with fellow domainers and most of them were in the same boat.

From-$1,000-offer-to-a-$28,000-sale

Coming to the sale which I just completed through Sedo was for the domain BrightEnergy.com which eventually sold for $28,000. Buyer contacted through Sedo with initial offer of $1,000. I countered with $38,888. As the negotiation history cannot be seen right now because the sale is completed, I cannot share exactly how we negotiated further but it was something like buyer gave 5K, 10K, 12K, 15K, 17.5K, 18,300, 27,500. I wanted to tell that buyer also came through Afternic broker and those mentioned counter offers were included from both platforms. I knew the buyer is same and using Sedo and Afternic simultaneously. The entire deal took almost a month to get completed from the initial offer to completing the transaction.

I wanted to thank Brian Michitti (Sedo broker) who was very good in handling this entire transaction on my behalf and very quick in taking necessary actions on time.

Feel free to give your feedback and share your recent sales.

How do I valuate domains and set an asking price

 

Hello and Assalamo Alaikum,

One of my reader Sumit asked me how do I valuate and set an asking price for domains when I don’t use any valuation tools like Estibot and others. I have also mentioned some factors which I don’t actually consider while assessing domains.

It’s an interesting question and many find it difficulty in setting up prices for their domains. Although I am not an expert or the domainer who mostly sell his domain in 5 and even 6 figures on regular basis. But if someone wants to know more as to how I operate my domain business, please continue reading.

When I was in initial stage of my domaining career, I did flipping and sold domains at sacrificing prices just in order to keep the cash flow going and must not stop buying and selling domains. But as I am quite settled now ALHUMDULLILAH, I can wait for the right buyer and play waiting game.

There are several factors in valuing my domains:

1) No urgent need of money. When you have good cash flow your sense of judgement gets change and you act accordingly. However, I have tried to get maximum out of every domain sale I can no matter what my financial position was. I admit of selling domains at lower price than I thought of their actual value but it was done purposely for the need of cash flow. Now when there is no urgency of funds, I feel I am on top of enduser and can demand what I actually want for every domain.

2) There are hundreds of domain I hold which are upgrades for companies but I have categorized several domains for which I have one specific buyer to target when selling. I won’t mention any specific domain but you may check out the domain investment page to get an idea. When you target 1 specific buyer, you limit yourself selling the domain and requires lot of patience and wait for that buyer to knock your door first. But I tell you… the reward is really fruitful and sometimes life changer. But in such cases, I don’t buy domains with having only one potential buyer on internet.

3) When targeting of one specific buyer, that company will definitely be having good backing of funds.If a company has got series of funding in millions of dollars, why cannot they spend a peanut of share on buying/upgrading their domain to a better one. The more time that buyer will delay, the more he has to pay because I have to consider many factors in increasing the price as the time goes by. My investment which is stuck for long time, aftermarket from where I buy domains is as always going up so my price will be adjusted accordingly.

4) That particular market is huge and has lot of potential. I don’t need of going into much detail about this because we as domainers know which niche has what kind of potential. But this is one of the factor I take into consideration for valuing my domains.

5) I don’t give much importance to exact searches and CPC of Google Keyword Planner. For most of domain acquisitions, I don’t even check these metrics. Also the length of domain doesn’t matter unless it has meaning, demand and potential. The more shorter, the better. Doesn’t mean longer in length domains are not valuable but surely less desirable than shorter names like 2L, 3L.com domains.

6) Number of existing companies. I take this metric into consideration when buying and pricing my domains. I normally check when that domain is possibility of an upgrade. I use NameDroppers and ZfBot for this purpose. When selling any 4L .com, I don’t see much benefit of checking existing companies through ND or ZfBot but Google is more helpful in such type of domains.

7) Registered in other extensions. Let’s take an example of one of my domain (BeeGreen.com). I prefer checking/considering NameDroppers or ZfBot and Google and rest of the factors I have mentioned in the entire post but just looking if BeeGreen is registered in other extensions doesn’t bother me at all. Yes, there is possibility of .net owner to buy the .com version but never sticking solely to this option of checking if BeeGreen is registered in lower extensions and decide how much to ask while selling the domain. The result will always be poor and I will leave plenty of money on table.

8) Language. Most of the domains in my portfolio consists of English words excluding 4L.com and brandable domains. I do have domains in many different languages but I try to buy good meaningful and very common words used in that language or has decent as well as common meaning in English language. I used decent because I don’t buy domains which has relationship with alcohol/adult/gambling. It’s difficult to sell less popular language spoken domain even in .com as compare to selling some German, Spanish, Italian words in .com. You have to see the domain you own is in which language and how much popular and common that word is in that language. Sometimes people prefer to have .de (German country code) domain than to have .com. Doesn’t mean you should not buy German language domains in .com but research is must. But if you seek my suggestion, I would strongly say to stick with English words in .com and diversify your portfolio once you have gathered good quality along with decent number of domains.

9) Comparable sales. Oh well… This is seriously useless for me for setting up an asking price for my domains. I do keep checking DnJournal weekly sales report and NameBio but that doesn’t mean I set asking prices after going through any comparable sales. Checking those sites keep me updated and helps me while buying domains so that I must not overpay it. But when I valuate my domains, I never check comparable sales because every domain is different. Demand of buyer is different, situation of seller is different and many other factors are involved.

10) The most important factor in my opinion is that buyer have to have the biggest idea for using the domain they are going to acquire from me. You will hear often from domainers who say that your domain is worth what the buyer is willing to pay. In my opinion, that just doesn’t make sense and that person might have no idea about this business. I always valuate and decide the asking price to whatever I want and sell at my own price. If the buyer doesn’t want at that price, he must not have the big idea for my domain. I simply pass which is difficult but that’s the way you should deal if you are to make fortune and change your life for betterment.

I would love to see what others think about my way and curious to know how you guys valuate and price your domains ?