As much as we all remember our sales, the truth that also jumps up at most domainers is almost all of our names don’t sell on a given, day week or even year. And we are tempted to deny that there is anything wrong with that. I do the same, to my detriment.
The actual returns from selling each name in Domain name investing are incredible. But do we use the 90-99% margin on hand registrations and low bid auction bidding to justify probably holding many times more names than we should. In the premium namespace, sales of 2-50x and making hundreds of thousands of dollars once or twice a year; can hide the need to market hundreds of thousands of dollars in assets – simply because the profits from one or two sales pay for the whole year.
Can anything survive that lax attitude forever? I am trying to tell myself no and optimize what I am doing in domain name investing, before I have to – when it may be to late. If your like me, you can spend 95% of your time finding and buying new names, and 1% of your time clicking yes to a sales message, and a small bit of time quoting prices, plus delivering names and managing your portfolio.
Oh, and we spend 2% of our time reading blogs and stories about what sold, and tell ourselves our names are way better than those, so we are good. Or we say, well sure anyone could sell their names for that price if they got them in 1996.
And headlines about our sales, we keep reading the news of our last sale, even if a month ago, and say yeah I’m doing great. But I’m also asking myself what will my headline be next month. Hopefully this gives you an idea what to expect from me on this blog over the next few years. Lets all be better Domainers, NOW while things are pretty good – in case they aren’t in the future. And if the whole industry gets better, we don’t have to worry – we got the inventory.
I’m efforting this year and in 2020 to change those numbers. Follow our blog here and Facebook and Twitter and Instagram and Telegram if you want to stay updated on what techniques, tricks and resources I find to help me on my quest.
Now this is an unpopular opinion. I feel like the Tom Cruise character in Jerry Maguire, who said less clients in the memo that got him fired. So I tell myself, less names, or at least better names at the same level I have, but intentionally. So as you read about sales each week and day on namebio, blogs and the weekly Dnjournal report; keep in mind what is also happening, but doesn’t get the headlines.
I’ll go further.
Real headlines we don’t see.
Uniregistry reported weekly sales today and 1,199,078 domain names didn’t sell this week.
Sedo reported weekly sales today. 1,561,148 names did not sell this week.
Mike Mann’s Domain Market didn’t sell 350,954 names this month.
NameJet reported that 102,505 domain names didn’t sell this month on their platform.
Check out my best of the drop list . 202,174 Domain Names were dropped by their owners and not worth $9.
Flipping domain names. 220,163 closeout domains are available that no one thinks are worth $11-20.
Check out the Godaddy Auctions daily not-hot list of 50,412 domain names that wont sell.
And fill in the blanks for your own portfolio, ___________ of my names didn’t sell this week, month or year.
So it is easy to get into domaining and see if you can buy a closeout or expired or dropped name, and flip it quickly; but try to at least recognize the other side. For me, one sale pays for a lot of sins, plus time searching, getting outbid. I encourage you to understand what your personal numbers are.
Do you know how many names you own. Do you know the total hypothetical value of your portfolio. Do you know your cost, and both your cost of goods sold, and your cost of goods unsold? Overall, how much have you made in domain name investing? Is that money in your unrealized portfolio? How much have you taken to pay yourself, or buy the fun toys we all like. How many family vacations have you taken on the back of your domain names? How much have you gifted away from your amazing gains.
Fabulous CEO Dan Warner used a pretty fair metric as they did hand registrations in scale, take your total number of names times the renewal cost. Divide it by 12 to know your carrying cost per month, or 365 to know per day.
For me 4000 names is about $40,000 per year of renewals. That is $3.3k a month, $800 a week or $115 per day. I don’t count any domains I paid more than $1000 for as I consider those sell-able, when I choose based on price.
So for me those are my operating costs each day, week or month. Add in what you spend on new names. Know your numbers. Are you having your own sales headlines in line with your portfolio? Let me know how I can help with some future posts.