Part II Of My Introduction to the Biggest Myth in Domaining.
Oh No!!! I need to sell. 😱😱😱.
The 10 steps start after this post. First a little on the mental and emotional side of domaining, if your not meeting your goals. If things are going great you can skip to the steps.
So back to buying because its the only thing you can actively do, and it makes you feel good. Your feeling good, you found a nice 2 word category killer, outbid some others and paid $110, and your sure an end user will pay $10,000. But…. from a cash flow statement, your out money when you buy.. yes even if on a credit card you still owe the money. You may think you have a a great asset, and before you bought the name, it was illiquid and after you bought the name, its illiquid.
You for get to list on the aftermarkets and wonder why no sales messages are appearing. You wait a couple of weeks and finally get the landing page setup. Now its been 60 days. You list it on Namepros and no one has bought it from you for 5-10x. You tell yourself you bought the wrong name.
Or your buying wholesale liquid names, like LLLL, and making or losing 10-20% – where are the big sales? Yes you have liquidity but to get names you have to pay a little above market; and to sell quickly you have to take a discount to wholesale value.
Then the negative thinking kicks in. All the lucky domainers got their names in 1997. All the good names I want I get outbid on by the large holders. But you want to make money in domaining. What to do? yes What to do.
Your tendency may be to want to act. But what to do. Nothing is happening and the only thing you can force, or actively do , is buy more names. so …. hey buy more!
So lets go slowly and unpack buying and selling in a marketplace a bit. Warren Buffet used to talk about Mr Market, the idea there was a person who summed up everything happening in the stock market, you can consider him or her (Mrs Market if it helps) your adversary…and in domain name investing. Mr. Market owns every good domain already, and bids against you in every market until you drop out.
And Mr. Market in domaining doesn’t let us sell to him, in the domain name space he only lets us buy. We see others selling. We see names like ours selling in the NameBio and DnJournal reports. We see Mike Mann selling a name just like ours for $24,888. We want to make money, so we buy some names to flip… the buy part is easy, boom boom, done..now try to sell them. Its tough, so put them in the closet, and buy some more. You rationalize…I think if i could just buy the right name..I can make money. That next name, that next buy.
But even if you slow down, then you hear of a new hot trend, you wade in and buy. Your hoping your smarter than everyone, and no one else saw the trend. And, somehow you can buy, and then everyone else will pay you more..tomorrow… more than they would today. But if so they would have bought yesterday… when the name was for sale.
Typical Domain Name Investor Portfolio
So your portfolio is made up of a few themes, a few keywords where you went overboard and bought 40 names with the same word, and few good names, but you had to outbid everybody on earth to get them; and then some .nets and org of names that would be good in.com Thats what I see out there when people send me lists.
So you need cash. Can you get cash form selling in the marketplaces?, today right now? They can just play the odds, list 20,000,000 names and some will sell. Unless your at the top of the food chain, LLL and NNNN and one words you would sell for 20-50% of wholesale value, there no place to to cash-out. There is no cashiers windows to lay your chips down, and take back cash. Sell on Namejet, you wont know for 30 days if your name gets bidders, than 30 days to collect funds. Sell on Godaddy auctions, your mixed in with 20,000 expired names a day.. will your name stand out?
Liquidity from the in-bound brokers? They can get 1,000,000 names on landers and someone will be after names each day. Just maybe not your names. So they are busy if someone inquiries on a name from their entire group, but they aren’t looking out for your names. What are the chances you have an inquiry? Marketplaces and brokers see everything from a top down view. They look at all the names listed or with inquiry pages, and know the top or the random will get action, and thats enough for them. The domain owner see only his or her names, how can mine be showcased, exploited for maximum gain.
So, the landing page companies see nothing but successes, Get 1000 leads a day, follow up every two days for 3 years and someone will buy. But from a bottom-up perspective that doesn’t help me sell my names. I want leads on my name, how can I make that happen, I cant – so what to do, I buy some more names. Many beginning investors find themselves buying until they make a sale, buy buy buy.
And discipline doesn’t always help. Say you don’t overpay, but your not getting anything on board. You can start to feel like its a rigged game. To get a good name you have to pay up. And to sell a name I have to discount price. So you never buy, and cant sell. You fell you can’t win. Add to that feeling that all the good names are taken, and what I’m offered I don’t want. So you don’t buy anything, even good names. Your paralyzed, why because your not selling. So make more sales!!
It tough out there. But thats what should happen in a market, everything good is taken and whats available, you shouldn’t want…unless you have an edge. So Quick Tip. Do you know an industry well enough you know whats going to sell, then its ok to over-invest. Are you buying in an area, AND SELLING, do you have sales in a theme that underappreciated by other investors. Then you can own more. Otherwise wait until you know whats selling to buy. And don’t be afraid to be a broker, try selling before you buy.
It should be frustrating. It should feel that there is no free lunch. Do you feel like that? GOOD! Keep that mindset, it should be tough. You should earn your way to a good buy, and sales are part luck…..even if you make your own luck, sometimes luck is just that …lucky. And don’t be afraid to do nothing, not winning is not losing.
But if you have been buying, and need some cash. You then need someone else to buy your names, so your selling strategy is please “Please buy my names ! “. Why – because I need to sell them. You jump into the forums as if they were waiting for you. You email an inquiry from 3 years ago, and say I’ve decided to possibly sell the name for low 5 figures. But can you get cash this way?.. just by deciding you are ready to sell, no!
No One Cares About You
The fact you have decided to sell is not enough of a reason to get a deal done. I get emails asking me to appraise names, i.e. buy them, all the time. Many times I may not have even registered but one out of 10, or 1 out of 100.
But don’t lose hope, the good news is most of my sales are at 10-50 times what I paid so it only takes 1-3 a week to keep the batteries charged, if you have a good stable of names and manage your risk capital correctly.
But the next time you think the thing you need to do is BUY, step away. Let the moment pass… get clarity on what you should be buying first – buy by seeing what sells. Have a talk with yourself or join our community and our live chats. There is money to be made, but just not from always buying what happens to come to mind at the very moment your domaining, have some extra cash and wait to buy your way to profits.
If you really need to buy find the best deal on hand registration names and pick the best 20 you can find. Wait 2 hours and sort again. Wait 2 hours and buy one. But thats just to make yourself feel better. The real work starts in the next post.
Keep reading our blog. Every domain name “could” sell for 100x after you buy it, but which ones have the best chance. Keep following this blog and my domain with me posts and I will try to guide you to be a better domainer, to improve your odds of selling your way to success.
And for those of you in the business for years, act like your starting anew. Ask yourself this, I do. What if you didn’t buy the weakest 30% of your portfolio, and had instead spent 2 hours or more a week on sales, instead of buying. What if you had Brokered other investors names, and got to talk to buyers. See what they say. Then your a better buyer, and would have more liquid capital. Its ok to have a partially full portfolio. Always have money for the surprise, lucky buy.
So its easy to buy, you look, you search.. pay the credit card.. and feel good. Now selling or improving your odds to sell takes some work.. But its what you need to do. So I have put together this series on how to spend more time selling your domain names.
Coming up Monday is the start of the 10 things you can do right now to be a better domainer.