TBR Drop - Dec 13, 2023 (1.Viewing)

DomainTrader said:
Quit sandbagging keep your eyes on this guy boys
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RLM is describing the investment portion of the impending RM.ca auction perfectly, but I agree that this all changes if he decides he wants to buy it as an end user.
 
End user or not it’s worth 10K+

No one says you have to buy 100 LL.ca’s as an investment and those with money obviously will be in the auction.
 
rlm said:
rather than bequeathing them an LL.ca.
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And then they'll inevitably forget to renew the domain and it'll drop.

The domaining circle of life.
 
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DomainRecap said:
RLM is describing the investment portion of the impending RM.ca auction perfectly, but I agree that this all changes if he decides he wants to buy it as an end user.
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Not sure how I would even use rm.ca that would justify an end user type purchase... And I already have a portfolio of domains much better suited for any end user projects that interest me. My interest in rm would be purely for investment, so for a great price, I'm not stupid, I'd buy it. But, at the price I think its going to go, I'm not going to be interested.

Also, look at the numbers. If an investor sells 2% per year, even without buying a single new domain, after 35 years you'll still have 50% of your domains.

The reality is that I sell less than 0.5% per year. So in 35 years, I'll still have 87% of my portfolio. In 35 years, I would be 91 years old - and more likely sitting in a dusty urn and long forgotten by then, with my daughter retired early and living off my domains too - assuming domains are still a thing by then.

So at this point I'm becoming less and less concerned with buying. TBR is fun at times, the part I enjoy is scoring a great deal on a domain that slips through under the radar. But do I really need another domain? Are there better things to do with my time? Probably.

Here's a good discussion, .COM domains have been around 38 years now, .CA for 35 years. If they last another 35 years, that would mean we are at the middle now. How long do you expect domains as we know it will continue to exist? How long before registries and registrars jack the prices to make money for themselves and trying to force large scale investors out of the picture? Does anyone see that happening?
 
rlm said:
How long before registries and registrars jack the prices to make money for themselves and trying to force large scale investors out of the picture? Does anyone see that happening?
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I would dump all but a select group of domains, you only need to keep the best ones.

For instance.... I would keep rm.ca :ROFLMAO:
 
rlm said:
How long before registries and registrars jack the prices to make money for themselves and trying to force large scale investors out of the picture? Does anyone see that happening?
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Not on the established ones, as there would be a mass revolt among all customer levels (thereby drawing gov't attention) at a level 1000X worse than when Ethos tried to buy ORG.
 
rlm said:
Not sure how I would even use rm.ca that would justify an end user type purchase... And I already have a portfolio of domains much better suited for any end user projects that interest me. My interest in rm would be purely for investment, so for a great price, I'm not stupid, I'd buy it. But, at the price I think its going to go, I'm not going to be interested.

Also, look at the numbers. If an investor sells 2% per year, even without buying a single new domain, after 35 years you'll still have 50% of your domains.

The reality is that I sell less than 0.5% per year. So in 35 years, I'll still have 87% of my portfolio. In 35 years, I would be 91 years old - and more likely sitting in a dusty urn and long forgotten by then, with my daughter retired early and living off my domains too - assuming domains are still a thing by then.

So at this point I'm becoming less and less concerned with buying. TBR is fun at times, the part I enjoy is scoring a great deal on a domain that slips through under the radar. But do I really need another domain? Are there better things to do with my time? Probably.

Here's a good discussion, .COM domains have been around 38 years now, .CA for 35 years. If they last another 35 years, that would mean we are at the middle now. How long do you expect domains as we know it will continue to exist? How long before registries and registrars jack the prices to make money for themselves and trying to force large scale investors out of the picture? Does anyone see that happening?
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Yep it is happening now to some degree with the automatic price increases built in
 
rlm said:
Not sure how I would even use rm.ca that would justify an end user type purchase... And I already have a portfolio of domains much better suited for any end user projects that interest me. My interest in rm would be purely for investment, so for a great price, I'm not stupid, I'd buy it. But, at the price I think its going to go, I'm not going to be interested.

Also, look at the numbers. If an investor sells 2% per year, even without buying a single new domain, after 35 years you'll still have 50% of your domains.

The reality is that I sell less than 0.5% per year. So in 35 years, I'll still have 87% of my portfolio. In 35 years, I would be 91 years old - and more likely sitting in a dusty urn and long forgotten by then, with my daughter retired early and living off my domains too - assuming domains are still a thing by then.

So at this point I'm becoming less and less concerned with buying. TBR is fun at times, the part I enjoy is scoring a great deal on a domain that slips through under the radar. But do I really need another domain? Are there better things to do with my time? Probably.

Here's a good discussion, .COM domains have been around 38 years now, .CA for 35 years. If they last another 35 years, that would mean we are at the middle now. How long do you expect domains as we know it will continue to exist? How long before registries and registrars jack the prices to make money for themselves and trying to force large scale investors out of the picture? Does anyone see that happening?
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Very carefully analyzed and makes a ton of sense. Wish I had the foreknowledge on this when I got started in domains. But makes perfect sense and everyone should understand this.

May I propose @rlm as the recipient for the Nobel Prize in Domain Economics. Seriously.
 
rlm said:
So at this point I'm becoming less and less concerned with buying. TBR is fun at times, the part I enjoy is scoring a great deal on a domain that slips through under the radar. But do I really need another domain?
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I'm still wasting a ton of time on the TBR and still buying, but I have been consistently "raising the bar" on what I deem a good buy, and with experience, lowering the amount of money I will bid on semi-premiums and mid-rangers.

For the TBR you need a short list and a shorter memory, as each week is a new opportunity. Forget what you lost, enjoy what you won, and continually try to improve the quality of the domains you go after... until at a certain point, you turn into RLM, sitting on a gold mine of domains while businesses scrabble to hit your price.

🤑💸💰💲
 
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Eby said:
Very carefully analyzed and makes a ton of sense. Wish I had the foreknowledge on this when I got started in domains. But makes perfect sense and everyone should understand this.

May I propose @rlm as the recipient for the Nobel Prize in Domain Economics. Seriously.
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It was an eye opener that's for sure thanks to the (g)RIM Reaper
 
Eby said:
May I propose @rlm as the recipient for the Nobel Prize in Domain Economics. Seriously.
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Domain Economics is scary stuff.

"Running the numbers" can be a humbling thing, as most people just play off the cuff, buying and selling domains without ever looking at the bottom line. Many would discover they are actually hobbyists, losing money while "collecting" domains paid for by other income sources.

Our own Bob Hawkes created an impressive article on this very subject and it was an eye-opener for many readers:

https://www.namepros.com/blog/the-minimum-domain-price-for-profitability.1313195/ (change the "poos" to "pros").

That's why I spend so much free time on it, as you need to put in the effort to make sure it's profitable. You need a plan and you need to stick to it. And you need to "run the numbers" and adapt to what the numbers are telling you.

Which TBR domains to go after, at which registrars, how much to bid on each one, what is my top price I will go to at auction, offers are coming in, what prices do I set (based on my STR, acquisition cost, current market conditions, and perceived demand & value), what should my counter offer be, is his "final offer" enough to turn a profit, when should I cut off a negotiation, which domains should I drop and which ones will I drop, etc., etc., etc.
 
DomainRecap said:
Our own Bob Hawkes created an impressive article on this very subject and it was an eye-opener for many readers:

https://www.namepoos.com/blog/the-minimum-domain-price-for-profitability.1313195/ (change the "poos" to "pros").
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Regarding Bob's statement:

Many retail purchasers ask why a domain name that only cost $10 to $20 to acquire sells for $2000 or more. It is, of course, because most domain names held by investors will either never sell, or sell only after very long hold times. The prices on the names that do sell need to be higher to offset costs associated with those that do not sell.

I think this is where many people fall into the trap of underselling a domain name. If you're pricing your domains on what you need to survive, then you're missing all of the upside that can make you successful. The value of a domain name isn't what its worth to the seller, its what its worth to the buyer.

If a potential buyer is a legit business and claims they can't even afford $5K for a domain, then you need to break the news to them... They have a hobby and not a business. Even small businesses spend tens of thousands on advertising/marketing/etc yearly - and the perfect domain name should be an integral part of that.

Yes, there are challenges to getting a buyer to understand that part. But I think that is where the true art of the deal lies. This is what separates the hobbyists from the full-time domainers. Yes, it's a good idea to know your numbers and grow within your means and build a portfolio of marketable domain names. But first and foremost you've gotta convince the buyer the domain is worth it and you need to explain why if you have to. Don't be so willing to just lower your price to close a deal, work the buyer, educate them, talk about long term benefits, be open to payment plans, etc, etc...

Bottom line: If you want to be successful at this, you've gotta be a salesman, not just a numbers guy.

Caveat: There are very successful companies that treat domains more like a simple commodity, and they buy/sell in bulk with massive portfolios (millions of domain) at fairly cheap prices, mostly dealing in mediocre every day domains for small businesses in the .com space. I just don't think that works well in any TLD other than .com.
 
That's my problem, I'm great with Finance, Accounting and Marketing, but I suck hard at actual face-to-face sales. I never liked it and I purposefully stayed away from it as a vocation, even when I was in University.

It's not like I'm starving with domain sales, but for the most part I know I am leaving money on the table. I just don't have the salesman streak in me to squeeze out those last dollars, but I try to make up for it in other areas.

For example, a recent sale I made I just knew I could have got more, and the guy paid immediately which is always a sign that he thinks he got a deal and wants to close in a nano-second.
 
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rlm said:
Regarding Bob's statement:

Many retail purchasers ask why a domain name that only cost $10 to $20 to acquire sells for $2000 or more. It is, of course, because most domain names held by investors will either never sell, or sell only after very long hold times. The prices on the names that do sell need to be higher to offset costs associated with those that do not sell.

I think this is where many people fall into the trap of underselling a domain name. If you're pricing your domains on what you need to survive, then you're missing all of the upside that can make you successful. The value of a domain name isn't what its worth to the seller, its what its worth to the buyer.
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Hey, that's similar to my site slogan:

"There is no such thing as a strict domain price, only the highest amount you can extract from the buyer."

And reading what you wrote makes me think of those Twitter guys posting their "sales" that go something like this:

Made a nice sale today!

CrapDomainZ.com

Price: $335
Acquisition cost: $190
Hold Time: 6 years
Pure Profit!!!!!

I never say it, but this poor sap just lost a pile of money on that "sale".
 
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