One of the biggest challenges for investors without tens of thousands of domains is sales consistency.
Unless you’re one of the biggest domain investors, you likely get frustrated by the unpredictability of domain sales. When it rains it pours, and other times you’re in a drought. It’s also hard to test different approaches because of the small sample size. On today’s show, I give examples of this from my own portfolio and discuss how we might be able to learn from the biggest domain investors. As a postscript, just moments after putting the final touches on this week’s recording, I made another $5,000 Afternic sale.
Also: GoDaddy’s TLDs, end user sales, ICANN & more
Sponsor: Sav.com domain auctions
Podcast: Play in new window | Download (Duration: 25:09 — 20.2MB) | Embed
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David Gruttadaurio says
Another great show. Thanks for sharing your info with us.
FYI: Dan’s lease to own setup is very buyer friendly. Clicking that option on the domain’s sales page gives the buyer a sliding schedule for payments. For example, a 24 month LTO (the lease term we use) offers payment prices for 2 to 24 months. We weren’t interested in leasing domains at first… we’re now big fans, Four sales have payment terms of 6, 10, 17 and 22 months. Sold another one last week for $19,500 that is a 24 month lease. We did have one lease default early, with just one payment made.
Andrew Allemann says
Agree, they’ve done a good job on this. I’ve sold several domains through their lease to own.
Thanks for the info!
It’d be cool if Dan could allow the first payment amount to be specified by the seller. Large private sales often include terms in which the first payment is larger than the rest. Many sellers like myself are probably hesitant to give control of a premium domain to a buyer that has only made a single small monthly payment, especially given the possibility of default/misuse/etc.
(Just as an example, a domain priced at $100k on a max 6-year lease at Dan would have monthly payments of about $2k. I’d imagine many sellers aren’t comfortable giving up control of a $100k domain for $2k. If the seller of a $100k domain wants 20% upfront, they’re forced to use a 5-month lease with $20k monthly payments. Many buyers may have the $20k for a first payment, but not $20k per month for 5 months. It’d be great if the seller could ask for $20k up front, then spread the remaining $80k over as many as 59 payments.)
Andrew Allemann says
It’s a good idea, but perhaps segmented by domain value. Soon, Dan will make it easier to set different settings for various portfolios within your account. So you could allow payment options on domains at $10k or below, but not on more expensive ones.