So quite the discussion yesterday on Twitter with Rick outlining his parameters for names he hopes to sell for $100,000.
If u want to sell a $100,000 name, u have 2 buy one BEFORE it is a $100,000 name. MUST recognize elements that make that possible. #Domains
— Rick Schwartz (@DomainKing) March 27, 2017
Mike jumped in with the following:
@thedomains Yes to the first part but $2500 is usually my budget for a $100,000 end user name. If I put out $25k, I expect a bigger return.
— Rick Schwartz (@DomainKing) March 27, 2017
Elliot Silver jumped in asking Rick how many times has he done this in the last 10 years ?
@DomainKing @thedomains In the last 10 years, how many times have you bought a $2,500 domain name and turned down or sold for $100k+ cash?
— Elliot Silver (@DInvesting) March 27, 2017
Follow the whole conversation here
Pretty much agree with the “Domain King” there.
It may be possible to hand reg a domain and later receive an offer for $100,000, but extremely unlikely. Of course, this was possible pre-2000.
Michael Mann seems to have had quite a bit of success at hand regging domains and later flipping them for substantial profits. But again these are rare cases,
I suppose it’s possible sure, heck I have had many great roi but as Elliot states, few and far between to the pint where actively throwing $2500 at dozens of names you believe will pay off is too risky for most. Nothing wrong with slow and steady.
Buying a domain for 1.00 USD and selling it for 1,000.00 USD
has the same ratio like
buying a domain for 1,000.00 USD and selling it for 1,000,000.00 USD
Domaining is a (ir)ratio(nal) thing, it depends on your will to keep patience and on your skill of deep negotiations.
Rick is a great PROMOTER and SALESMAN. I give him that.
BUT…………………………..
Replicating his success in 2017 is impossible.
Yes .for the average domainer walking along the groves of fruited trees with umreachable fruit whose past siblings had been gobbled up by the likes of shilling swartz and others early to the game.But these guys float above the trees with anxious crop looking for a.icon to shine on them. And they dont mind being raped by the king. So yes when the industry revolves around the pioneers. Good shit just comes their way.So yes im sure rick can buy 100k domains for 10 grand. As far as 2500 that may be too good to be true.
I think that a decade or two ago, $2,500 would be an easy investment for a long-term hold to flip for $100,000. However, in today’s markets with more readily available educational information, I think the gap between investment and ROI has shrunk a bit. Most of the larger ROI sales reports you see, were investments made almost a decade+ ago. Don’t get me wrong, there’s still plenty of money to be made in the domain industry, but one can’t use old statistics in today’s markets.
When money becomes scarce and a domainer needs to dump a gem quick they may turn to a. Liquid buyer. i recently aquired a 20k domain from a popular broker for only 400 . the seller needed the money.its not like this domain was not advertised either .The domain started at 8 grand .when it got down to 900 i offered 350 they said 400 and paypal was on the way.there are a lot of sellers just selling good domains cheap to pay for fheir better or not so better other domains.sometimes i cant believe the offers that go unsold .who needs handreg
Why wouldn’t the broker pay him $400 for a $20K domain, sounds like a fairytale,, they could spam a few people and get a better offer. Don’t buy it!
Because the domain is really only worth $400, not $20,000. That price was the wet dream of a domainer who thought his name was better than it is.
Without knowing the name who knows.
Yes, without knowing. If it was worth even in the low thousands, others would be swooping in before it hit the mid hundreds.
I don’t value my inventory at the list price, I value it at the cost basis. Because you cannot tell the value until a name is sold. While I typically sell names for about 10X, and I’ve got hundreds of sales were a name I might have paid in the hundreds or less sells in the thousands or tens of thousands of dollars. BUT, I have are thousands of names that have yet to sell. And they are names I have hopes of getting a good multiple on too–names that I “feel” are worth a much higher price than what I paid. But until someone buys a name from me, I don’t really know it’s value, don’t really know if I’ve just overvalued it in my mind. Domainers, in general, tend to believe their names are worth more than they are. Just look at the silly prices on silly names.
And also, just because a name has a price tag on it for $20,000, it’s 100% meaningless in regards to its true value. Like I said, people put silly prices on silly names. Just an example, one of MANY that I found with a quick look is 1stwomanpotus.com, which can be had for a Buy Now price of $25,000. If the buyer got real, he’d sell without a second thought to anyone that would fork over $400. But that does not mean a buyer would a “steal it” at $400. In fact, he probably would have overpaid as I think the name is worthless.
Great Twitter discussion!
Domains are unique assets and many .com holders are selling way too cheap. If more were willing to hold out for higher prices we would all benefit, not just by increasing the value of our portfolios by limiting supply, but by educating end users and the public about what meaningful .com domain names are; valuable pieces of internet real estate.
Christian either you have just a few domains or some very valuable domains .if you owned 10 houses and only 5 were rented out you better sell one or may lose them all.
If we are to convey to the business community that meaningful .com domains are valuable intellectual property assets, we have to price them accordingly. Not sell them off as we were having a garage sale.
As an asset class domains are extremely undervalued. Businesses are currently picking up super important marketing assets for what amounts to peanuts in the corporate word.
That’s a good point, Rick. I paid $10 for dankweed.com, toppled a federal dynasty, and now have become a multimillionaire. The domain prince is in..Yeah!
I think it depends on the domain name and the different factors like who wants to purchase, popularity of the name and type of name it represents. For example, if you have a domain name that represents a billion dollar company. Will you sell the domain name for below $1K? that wouldn’t be right for the seller and the domain name it represents It’s not easy to find a good domain name this days because all are taken. So if you found a good domain name, how can anybody say that it’s not worth the price? Good domain names are very hard to find this days.
Common sense right?
I wonder there are one word domain that still available galaxias.net
How much does it worth to sell it for end user.
Do you this ONE Million Dollar a reasonable price?
I did it – You have to see the potential and find the right buyer. Be proactive. Sitting and waiting doesn’t always work.
Rick and I dont always see eye to eye politically (He blocked me so I never saw this until now) but I usually agree with him on the domain side.