We all love to hear about all those six and seven figure domain sales of one word category killer domains.
But there is a whole other market out there for end user buyers of two three and four word domains, and its a pretty busy marketplace.
We just finished up out best month of the year, in June, selling 16 domains for a total of $110K in sales.
We also turned down well over 100 offers on some of our best domains.
With BuyDomains.com rocking along with $600KÂ in sales a week, there’s no doubt that there is tremendous demand for domains from end users for sites, blogs and e-mail.
It seems that with job losses, people are turning to the net to find income streams and need a good domains to start.
Mike,
Just curious to know if the 16 names are spread out across your portfolio qualitywise or are they from the top, middle or bottom rungs.
Also, what’s your take on FS and KH finally putting pieces of their portfolios up for sale?
Well done Mike!
There is indeed an increase in the demand for quality domains from end users. Your average sales figure was $6,875, and that is pretty impressive.
Thanks for sharing, as this helps to prove that its not just the big marketplaces making the deals!
Tony
I would say all but one are easily replaceable domains, you could get everyday on Namejet or one of the other auction services for a couple of hundred or less.
I’m not sure why those guys haven’t been selling all along.
I have from the beginning sold, domains with little to no traffic and revenue in the $5K-$25K sweet spot just to pay the registration fees for the rest.
I think that the fact that those guys are selling, is a reflection on the reduced parking revenues and the reality on large portfolios there are substantial funds require just for renewal which could be easily covered with sales
Kevin
Your welcome
Very impressive. It never hurts to have positive cashflow.
Did the 16 sales come direct or thru other selling platforms (sedo, moniker, namejet, snapnames)?
Did some of the 16 transaction start many months ago?
Domain
Most of the domains came from as you say other selling platform but none we big money purchases.
The total cost basis of all 16 domains was under $1K.
One of the transactions started almost a year ago but all the rest we very quick
You hit the nail on the head, Mike!
Yeah things are still happening out there – I just brokered two one word generics for five figs each.
The market is still moving, some people are real bargains and sellers are motivated on one of the names I got $80k off for the buyer just by asking what is his bottom line price.
Congrats Mike on the 16 sales and good luck for many more to come.
Rob
Hey that ‘s really a good sign!
I am no longer an active generic domain buyer as I was few years ago.
At these times I did not know you but I remember very well how it was very difficult to buy anything from MostWantedDomains for a domain investor. And unfortunately many of the names I wanted leaded me to your site 🙂
I am not complaining, just outlining you only used to sell at what we domainers call end-user price.
So these sales you are talking about today probably really reflect a good aftermarket health.
Congrats Mike, your persistence and hard work continues paying and I am happy for you.
Friendly.
Everyone is selling a lot in last couple of month. Also no idea what’s happening. Was never getting so many requests via email, I mean real ones. Guess people are getting educated about domains…
F quote
“I am not complaining, just outlining you only used to sell at what we domainers call end-user price.”
That is funny to read. The couple times “F” contacted me, he lowballed me and got surly when I quoted slightly more.
Mike, Very impressive indeed.
I was wondering which selling platform works best for you.
Francois
We have never sold a domain based on a multiple of revenue.
The biggest difference between an end user and domainers is that end users don’t even ask about traffic and never about revenue. End users could care less if a domain has traffic and doesn’t understand PPC at all.
Domainers are, as Rick said yesterday on his blog, all about the numbers”
http://www.ricksblog.com/my_weblog/2009/06/where-are-the-numbers-its-all-bs-without-numbers.html
So a domainer is going to ask how much traffic does the domain have and how much does it make and then make their offer dependent on those numbers.
Believe me domainers wouldn’t buy for $5k-$20K the domains we sold last month.
D
I think the high profile million dollars sales really help the whole market from the bottom up.
People read about toys.com selling for $5M and stories calling it a bargain and its people thinking.
You really have to be impressed with domains over the last 90 day
In this simply horrible economy filled with news of foreclosures, short sales, bankruptcy, huge losses in the stock market, 401k plan wipeouts, we have seen 4 sales in the seven figure range.
Has to impress the general public.
Hell it impresses me.
Yaron
All the sales came from our own platform at MostWantedDomains.com
I really need to list my domains on my own website.
These days, I take great joy in getting some real gems on the drop or for $59-200. But reading this and about BuyDomains, I’m getting tired of the a$$holes lowballing me with $100 offers through Sedo – a$$clowns that are offering $100 for domains I wouldn’t sell for $100K.
I am a huge NET buyer right now and have no interest in selling.
Tony
We have a $2,500 minimum on the form on our site to get rid of the stupid offers.
Tony quote –
“I’m getting tired of the a$$holes lowballing me with $100 offers through Sedo…”
I thought I was the only one getting those.
🙂
Michael, don’t let Judi see this post or she’s going to want to do some shopping 🙂 !
Congrats on the great month, you deserve it!
I don’t want to take Mike’s posting on a tangent about Sedo but Sedo still has a problem with non-payment by buyers.
Just yesterday, 2 different domainers told me they had a couple domains unpaid at Sedo. In my case, I only had 1 non-pay in the past 60 days.
Jamie
You know my wife too well.
Domain Investor
I also have had people who agree to buy a domain and back out.
I even have people who have agreed to the terms and conditions of an escrow.com
transaction and then just not paid for it, including last month.
It’s just one of the issues everyone is going to have, part of doing business.
If the transaction amount is substantial and the buyer is US then you can consider suing them to complete the transaction but if its a lower priced domain, its just not worth the cost and hassle.
Congrats on the sales. Nice number but then again I’m sure you have a hefty renewal fee bill every month 🙂
I am having a great year buying, selling, and brokering domains… as a buyer broker. As a seller broker ZERO. All junk opportunities or overpriced.
If you ever wanted to buy your wish list of domains, this is the year to do it. You won’t get them all but a number of buyers are motivated to sell or at least talk about lower (realistic) prices.
End users are flocking to the Internet because this is where their next customers are going to come from, not a bigger ad in the yellow pages or newspaper.
I am working on a press release to announce a sale of a domain portfolio of geo industry domains to a large corporate end user.
GREAT year to be in the domain business, end users are buying and domain investors are selling.
the shopping isn’t bad… but going to NYC to do it?
Good job, Mike!