My Past Domain Strategy
I personally believe that there are many different strategies or ways in which someone can make money with domain names. For almost a decade now I have used various domain names to start, grow, and sell online businesses.
At the same time, I have held on to some of these domain names and kept the more passive businesses build on them running in the background, earning me additional income each month for little or no work at all.
The reason I bring this up is because this is how I plan to fund my initial $500 investment into this domain name challenge. I won’t be digging into my savings account to start, I’ll be using money that other domains (and their websites on them) are already bringing in passively.
My domain name strategy will be simple. In fact, it will likely be so incredibly boring from the start that it may not even be interesting to others. However, it’s what I think will work the best.
In the past, I have bought and sold many lower priced .com domain names. In fact, I had a pretty dang good system going where I could buy them for $8-20 and flip them for more with very little downside. I would try to flip them all that first year, and put price tags around $100-200 on each of them. After 6-8 months if the domain name had not sold or had inquiries I would actively list it on places like eBay or NamePros and more or less just try to cut my losses or break even.
With this strategy I never had to renew a domain name. I literally would sell them at auction on eBay or in the bargain bin section at NamePros for $5-10 before letting them just expire or having to renew them.
Part of why I actively did this around the 6-8 month point is because people don’t like to purchase lower end .com domain names (which most of these would be considered if they’re not getting much attention despite my efforts) that only have a month or two left before renewal, and I also wanted to give myself enough time to find buyers. It isn’t always easy, but I was able to cut my losses on some names and sell many others for $80-200 fairly regularly.
Overall this was a profitable system for me, and I’m sure it could work well here when starting with $500 because it would allow me to purchase at least 25-60 names, but I want a more passive approach similar to how I run my websites, at least to start out here. *I also may end up reverting back to this tried and true strategy though*
Two keys to this was being organized and keeping good records. Additionally, I needed to be very active with both outbound and managing my portfolio. I had my names listed all over from eBay to Afternic.
My Domain Name Strategy
As I mentioned above, I have websites that earn passively. I really have grown to like passive income, and I want the domain name strategy that I implement here to be relatively passive.
Now don’t take that the wrong way. It will by no means by passive searching all over for domain names that I can buy and flip for profits. However, I want the selling and management of my portfolio to be more passive in a sense that I am only managing a few domain names, especially at the start. With only a few domain names to worry about I can really focus on promoting them well, and often.
Now I know what you’re probably thinking, if you only buy a few domain names with $500 to start this might be a pretty boring blog to follow, with not a whole lot of selling action.
You’re right, it could be. However, this is a great lesson for domainers out there that need to learn to take things slow and not buy every domain name they lay their eyes on. Putting deep, and more calculated thought into each purchase rather than buying a domain every day just to say you bought one is the approach I want to take here.
It’s easy to go and buy half decent domain names for registration fee or at a closeout auction for cheap. Buying is easy, selling is the harder part. All in all, I’m viewing it as a marathon and not a sprint. There may even be weeks or months where I don’t buy or sell anything. I hope that doesn’t happen, but it’s possible. If things are going too slow for my liking I’ll probably change up the strategy to keep this more exciting for you readers.
My Selling Strategy
As far as selling the domain names I plan to put up Undeveloped.com landing pages on the ones that I buy. Additionally, I will post them on this website, on NamePros with a fixed buy it now price, and on Afternic and Sedo with fixed buy it now prices as well. Where possible I will list each buy it now with a make offer option as well to entice more negotiations to take place.
I probably shouldn’t outright say it here, but I will likely accept less money for the domain names I’m trying to sell, specifically at the start of this challenge to build up some momentum and hopefully purchase higher quality names by reinvesting from the initial sales.
The sweet spot pricing that I will be focusing on at the start will likely be low to mid $xxx. After I get the ball rolling along I may start to go to high $xxx or low $x,xxx pricing. In general I think the best range would be prices ranging anywhere from $200-1,800 or so. If I can manage to pick up some great names maybe I can go higher, but for now I want to take my time and start slow.
In my next post I will go over more of how I will be tracking everything so anyone visiting the site can quickly see where I’m at and how good or bad I’m doing.