If I say “I’m a domainer”, I’m almost guaranteed to get a blank look! And a follow up question of “what’s that?”. 🙂
This was always a challenge at first, so now I give an analogy – equating it with being akin to a real estate investor / developer. Except of course I do it in a cyber sense by acquiring “cyber property” i.e. domain names (instead of land or buildings).
So how do I make money?
It boils down to two simple ways. Rental income; or re-sale. And in most cases, a combination of both.
When I acquire domain names (and I do so almost every day), my first step is to “park” them with a specialist provider. The company I use is Fabulous.com. I’ve been with them for years – and whilst there may be better income generating companies out there, I appreciate the level of features their platform offers. Service wise they are fantastic too – simply a phone call away.
With a few clicks, I can have a landing page up and running in minutes. This has advertising links relative to the domain name (generally!); and I can also enable a “For Sale” or “Enquiry” banner should anyone wish to make me an offer.
Analogy: So to compare with a “property developer”, this is akin to having a vacant block of land that I charge people to park their cars on (pending future development or sale). And of course, I have my “For Sale” sign out the front to let everyone know it is for sale.
Does “parking domains” give a good return?
On some it does – and on others, it is minimal. The majority of my domains earn just a few cents a day on average – and then I have some that make “dollars” per day! A few examples are:
workinjurylawyers.com.au – occasionally I can make more than $40 a day on this domain.
adelaidemassage.com.au – amazingly, this earns me on average over $5 a day. What do they do in Adelaide!
earlylearningcentre.com.au – good traffic makes this a consistent earner.
There are many others like these.
Importantly though, every single day of the year, I earn “parking” revenue from my domains. And with a large portfolio, this adds up.
Most importantly, my business model ultimately benefits when I decide to accept an offer for a domain.
By having that “For Sale” banner on each of my domains, I get offers to purchase every single day! If the offer is fair and reasonable, a deal gets done (generally a bit of back and forth negotiating goes on!). What assists me is that I have good “response templates” – with these I’m quickly able to reply to a prospective buyer with further information. Things like price expectation; sales comparisons – and very importantly how a transfer of “cyber property” works.
Many offers aren’t reasonable though, so these buyers get a very simple “No thanks” response.
Lately I find that I’m doing a lot more “terms deals” e.g. a price is agreed on, but the purchaser pays this off over 6 or 12 months. They get immediate use of the domain, but “title” doesn’t pass until fully paid for. I get my price – and the purchaser doesn’t have to make a big payment immediately. Win / win!
- I am a domain investor, and I don’t have to sell. Nevertheless, I do love doing deals!
- Nor am I greedy – I never put astronomic prices on my domains. My adage is that you always leave something in the deal for the next person.
- To my mind, good “cyber property” bought at the right price should always appreciate in value.
- Being a domainer is a great life – and you don’t need the huge capital resources of a property developer! Nor do you have all the red tape. 😉
- The R.O.I. on a domain name sale compared to a real estate transaction is mind blowing!