Domain selling is probably the most challenging part of domaining. And you can’t really make money until you master this process. It is also important to note that there is no single one way to do this. And it depends on the individual domainer and how good of a sales person he/she is and how much time he/she is willing to spend per domain.
Back in college, I had a part time cell phone salesman job and I socked at it. I think sales job is probably one of the most challenging jobs that you can have and I have a great respect for people going around, knocking on doors trying to sell something. You must have a different kind of personality to be able to do this.
While selling domains is not as bad, most of the time you communication with buyers is via emails and it’s easier. Of course, some domainers actually make phone calls to sale domains, but I know I won’t be able to do that. It’s one thing to send an email, it’s another to make calls and go through a sales script on the phone.
Again, I hate repetitive tasks and if it can’t be automated, I won’t do it.
As you can imagine, I’ve built tools for selling domains as well. However, at one point I just got stock as unsolicited email is considered kind of like spam, and you’re pretty much doing just that when you email someone asking them if they’d be interested in purchasing a certain domain. So finding the end users or even automating that process was not a challenge for me, but sending an email that fallows the spam rules is challenging.
So I took a step back from this process and started looking for answers. The obvious question was how are successful domainers with huge portfolios selling their domains? There was a simple answer, most of them are not trying to sell domains actively. Their strategy is simple, have quality domains and buyers will come to you.
While, many think that all quality domains are gone, that’s not true. You don’t have to have a million dollar domain to make profit. But domains have to have some quality. Expiring domain market is the best place to start.
So how is my domain selling strategy changing? You may already know the answer, I won’t be even trying to sell domains anymore.
Here is My Domaining Strategy for 2012:
1. Focus on passive selling – this means, I shouldn’t do anything more than listing domains at the marketplaces. I don’t want to do any end user emails, calls or anything extra to sell a domain. This does mean that I have to have much larger portfolio to sell more.
2. Buy a lot of domains with some quality – yes, some may tell you that it’s better to have 5 great domains than 50 OK domains, but I don’t agree. While it is true that high profile, keyword domains will have more offers or end users interested in them, but they also cost more and a lot of domainers are after them. The fact is that domains with some quality do sell, it just takes 1 person to be interested in your domain. I’ve sold several such domains this year and all of them were purchased for under $100 or for only reg fee. Again, this does not mean that you can sell junk. You should have quality domains and if you don’t understand quality, go to ValueDrops.com. I can not stress this enough, for newbie domainers, focus on 2 word, .com domains with no numbers, dashes, trademarks, product names, company names etc. 2 word, .com, with some generic keywords. I plan to do a few posts on domain quality. My plan for 2012 is to get at least 1000 of these and list them on all marketplaces.
3. Reinvest profits – I plan to reinvest at least half of the profits from each sale into my portfolio again. Again, I am not after highest quality domains, the way I see it, with each sale, I should be able to buy 25-50 new domains.
4. Sell It For Any Reasonable Offer – this may sound strange, but I don’t want be greedy. While, we all try to get the most out of buyers, but sometimes they walk away if you don’t take their offer or your counter is much larger. If I paid a reg fee to get a domain, it’s perfectly ok to take $300 for it. That is still around 3000% profit. In fact, I have sold a few of these. Looking back, some were actually pretty great domains. The renewal fees quickly add up and if you have large portfolio, it sometimes makes sense to take such offers.
Merry Christmas to you all and Happy Holidays, may your wish come true