How do I make money domaining?
Well by most part it comes to:
- know the market well
- buy low
- sell high
Domaining is a strange market. There are the end user prices and the market/reseller prices for any domain – both can vary a lot and there is a lot of money to be made on these differences.
However the risks are high, so you have to know the market very well. Being able to appraise a domain as close as possible for any specific marketplace is among the most valuable skills for a domainer. I’m usually able to predict a price pretty close: you can see my appraisal in the vqu.com thread where I posted it’d sell for $6500 – it ended at $6551, however LLL.com’s aren’t that hard to appraise. I expected my dato.com auction to end at around $9k and the winning bid was $9,001. I even won an appraisal contest over at domainstate last year. The point is (besides the fact that I like to brag sometimes.. but who doesn’t 😉 ) that since profit margins can be pretty low, being able to determine the price you can get for a domain is a top skill for a successful domainer.
How to improve that skill? Follow the market, check sales, appraisals, auctions. Experience and information.
- Here is a little exercise for everyone 🙂
Supernatural.com – Before you read further, take a quick moment to research and appraise this name. (1)
It was posted for appraisal on DNF, a year ago. This one is actually really hard to appraise, but here are the appraisals from that thread:
- thevirtual: low to mid $XXX,XXX IMO
- EJS: $2k – $5k+ imo
- valeria: xxx,xxx? you must be kidding. 3-6k
- PREDATOR: $100k name on it’s day Min. mid $xx,xxx
- Leading Names: 30k +/- 5k
- Onward: 25K reseller. 100K end user
- WeBuyThe.Com: Mid XX,XXX
- Devil Dog: xxx,xxx easily
- Rockefeller: high XX,XXX
- DNP: $50K to reseller min
- EJS: $30-40k if the traffic were to correspond to the OVT score.
- bdjuf: 15-25k$!
- NameGuy: 10K – 20K imo
- namestrands: End User value could be anything from $5k – $15k
Now take another moment to change/adjust your final appraisal before reading further… (2)
After this eventful appraisal thread the domain was sold twice. First sale was private and price is not known. However speculations were that it’s from $20-30k to above $50k (I assume the later is closer). Second sale was on sedo auction which ended at a whooping $125K 2 months later.
Please post your appraisals from (1) and (2) below, but no cheating 😉
Of course if you knew the price before it’s no fun.