We all have our ways. Things that we do that we feel help us get the highest price for our domains. What works for one may not work for another but it never hurts to read. Here are 10 little tips that I have found help me make a little more money with my domains.
1. Give your name to the people that have contacts. There is a reason the that the more experienced domainers of the world get the best prices. They know everyone in this industry and have contacts outside as well. They can look at a name and immediately come up with a person that would be interested in that type of name. Or they will at least know someone who can point them in the right direction. You have to face the reality that you don’t have that ability. With time you can certainly get there ,but in the mean time give your name to a broker or an auction house that has the ability to get your name eyeballs. Don’t be afraid of commission. We all preach of having beachfront property but when you want to sell it why in the world would you only post your for sale in your homeowner’s association newsletter?
2. Be willing to accept you have messed up and cut your losses. It’s the trader coming out in me here. We all make mistakes yet you hardly ever hear anyone ever admit it in domain investing. The key is to realize it soon enough, milk what value is left in the domain, and get it quickly into a better investment. Pawn it off on some other person that hasn’t learned what you’ve learned. Let them think they can do better. Morgan Linton realized he was moving down the wrong path with non dot com domains and did the right thing. Realized he was leaving money on the table, reversed course, and started on a new path. Screwing up is not a sign of weakness, it’s a sign of activity. The more choices you get to make, the more chances you have to screw up. I bought too many 4 letter “collectible” dot coms. I have a ton of triple repeating letters and I paid too much. I am taking my losses and putting it into better domains. Now my money is in names that are appreciating instead of stagnant.
3. Friend Liquidity. Many domainers can’t afford three letter dot coms. But they can afford three character dot coms. Because of this the three character dot com market is very lucrative and liquid. Liquidity is a flippers friend. I have never found a three character dot com that I can’t sell. A pattern that seems to do well for me is Letter Number Number. It hasn’t failed me yet. I buy low, sell high…..usually. I’ll lose money every once and a while but I’m always turning them. It’s a turn and burn strategy but there is opportunity in this market.Which leads me to.
4. Making a little money each time is OK. You’ve heard the saying “You’ll never go broke selling at a profit”. Well it’s true. You guys keep reading all these stories about these high priced domain sales and dream. That’s not the reality. The reality is you make a little money at a time and build reserves to buy strong names. There aren’t very many people that can pull a Chef Patrick and go from a portfolio of small names to a $150,000 domain. The rest of us have to build our portfolio by selling names for $100 profit ten times. Then $1000 profit ten times. THEN we move up to bigger names. It takes years. You can dream of hitting the jackpot but I prefer to work towards my big payday rather than hoping I’ll hit the lottery. This method makes me money and I think it will for you as well.
5. Perfect your counter. I think the counter is one of the most important strategies in domain investing. You could use the Rick Schwartz “Fuck You”. The Frank Schilling “we don’t sell names under $20,000” or the Michael Berkens “I don’t have a price but it’s certainly more than that offer” methods. In reality, most of us don’t have the type of names that command those types of prices. You want to be an unmotivated seller but you don’t want to scare anyone off. If you get an offer, you need to have a price in your head you 1. Want to get or 2. Willing to accept. You better be realistic if you want to sell the name. If you have plenty of money and it doesn’t matter, then hold off and sell high. I categorize my names into groups. 1. Dump if you can 2. Turn and Burn 3. Hold for a decent price 4. Big Money. My counter offers usually reflect which group the name is in.
6. Buy Privately, Sell Publicly. I realize that’s everyone’s strategy. It’s hard to sell a domain for $1500 when you just bought it at a public auction for $800 last month. It’s not to say you can’t sneak in and get a good buy at an auction and resell , but ideally you want a domain that hasn’t had its value defined by a previous public sale.
7. Build a price guide in your niche. Collect every sale and put it into a spreadsheet. Having knowledge that others don’t, will make you money. I can tell you pretty much every 4 number dot com sale this year. I also track every garden name I can find. The data helps me negotiate a price and of course I use the low sales to help me buy and the high sales to help me sell.
8. Take auto renew off your domains you want to drop. I can’t tell you how much money it’s saved me or lost me when I don’t. This doesn’t help you make more money but gives you more money to spend.
9. Don’t be afraid to start low and let the bidding run the price higher. I realize there is a risk involved when you do this but I often find it worth the risk. It is important to only do this when there are plenty of bidders, ie large auction or platform like Sedo. Doing this on a smaller platform will burn you more often than not. For the big auction I find that the lower reserve gets their attention and the competing bidders move the price along. There are different opinions on this but when I’ve gotten into a name at a good price and I know it will do well, I keep the reserve modest. For every “I’ve could have gotten more for it” I have a nice “Then you should have bought it and flipped it”
10. Make sure all your Buy It Nows are changed to current prices. If you don’t it you are going to lose money. Because some one is going to find it or you will negotiate a price and THEN they will find it and make you honor it. It takes time to do but it could be worth a lot of money
These are just some of the things that I think lead me to more profits. I’m ever learning but it gets better every year. I’m shooting for the million dollar sales but I’m smart enough to know that it’s going to a lot of time and effort to get there. Inch by inch making money millions is a cinch. Or so they say.