Selling Domain Names

Transcript

Building an indie business in the center of venture capital, I am Alex Edmonds on the internet, I am known as supremerumham. And this is the building an indie business podcast. Okay. So today I'm gonna be going over domains, domain names and how to make money from domain names, write songs about the revenue sources. The expenses, revenue reducers the process of selling a domain the formula for how to value a domain problems that I had, I guess, my opinion and some revenue ideas. Okay. So let's jump right into it. Okay, so revenue. So how do you make money from domains? Well, there, there are different ways to make money from a domain. You can flip it, right. So that means just you buy it. You might sit on it for a couple weeks, months, years, and then you sell it for more. So you can buy a domain for $1 and then sell it for 10. Like within a couple days, you just put it up for auction. So yeah, that's something people do. The problem with this is you need to find one That has value to someone else. I mean, that's I just described a transaction but, you know, like, like supremerumham.com if I buy that it's not gonna have any value to, you know, anyone else but me. I can't flip that. Right. So, yes. Okay. The next way to create revenue from a domain is parking it and what parking is parking is When you place an ad on a domain, so that when people go to that domain, they click on it. And when they click on it, you get ad revenue, right? And so basically with all domains, the domain needs to have value too. Someone else, right? So let's say w UIX p 277001159. You can't make money from that domain because no one's going to search for that. So you're not going to get anyone to come to the website. And no one wants that as their domain name because I don't even remember what I just said. I just set a bunch of letters. So, yeah, that's parking and then there's leasing a domain and what leasing is is you You buy it, you still own it, but you rent it out to someone else to use for their website. All right. And so the difference was Dwayne, this one is your, you're still making income from it, right? It's not just flipping One, two, right? Like you're keeping it you're keeping this domain. It has value to someone else desirable. And then when you let someone else use it, they they build up. Yes, you Yo on it right so There Making it so that maybe You'd be able to sell it For even more more in the future. Right. So yeah, okay. Um, the next way to make money from a domain is through a broker. So there are What do you call it? There are companies that will Help people sell their domain, right? So you watch us you, you email these people, you say, Hey, I have this domain, I have supremerumham.com. I think this has value, we'll go valuated. They'll give it an appraisal, that they have their own tools, right? And then they'll say, okay, we can make money from supremerumham.com. We'll help you sell it. But it might take a couple of weeks. Right? So just be patient, sir. Yeah. And then they take a transaction fee. Because, again, when you're on the internet, you're not avoiding transaction fees. Right. Okay. And then the final way to make money from a domain is a bulk order. So what a bulk order is when you have like, 1000s of them Means, let's say hundreds of domains. You have 100 domains. You want to unload them all. Someone might find value and maybe five or 10 of them. So they'll buy the rest of the 50 and I don't know what they do with it. The other 40 but then they might Use the other 10 and that makes up for the 40 you know what I mean? Like the buy those 10 because they know they have value. So they buy the whole 50 them and they those 10 make For that loss of 50 right, okay, expenses or ruptures of domain, okay. So there are many different expenses in the domain name in History industry, industry industry, industry industry, okay. I'm the First expense is the purchase Right. So you have to buy the domain. You got to shell out that dollar 99 in some cases, okay and then you know You need your privacy, so you have to pay for that as well. You have to pay for Your name not to show up on Whew, who is When someone looks up the domain and be like, Hey, who, who owns this domain? You have to pay for that for for it to show up as like a pork bun. Right. So yeah, and then you got to pay broker, the broker percentage that might be 9%. That might be 20%. But honestly, for me, for me at least If you're making me money, I really don't care about the percent. As long as it's not like 30% So if you can sell them I don't mean For $100 and take $20 of it and I'd be okay with that. Because at least you made me $80 you know what I mean? You know what I'm saying Lee? Okay. And then Sometimes those those Goes transactions from a broker take a little longer than expected. So, you have to pay to renew the domain, right? You have to pay pork been another $9 to keep that domain so you Yeah. And then there's auction fees so you can all when you're flipping it, you can to auction it off on a certain website right? Like certain websites, not just Magento It's just one but there's several right so You have to pay That fee Too The auction house So that's an Other expense and then There's transfer fees. So you have to pay a fee when you transfer it to the new owner. But, uh, you could also like add that in, right? So you say you pay off $100 for supremerumham.com plus the transfer fee which might be Five or $10 so yeah And then there Revenue reducers revenue reducers revenue reducers Okay, so, um, I ran into this issue. This should be in problems as well but Okay, so There are some platforms that will make you pay upfront to auction off your domain. And that doesn't guarantee results from them, which I don't like. So you might run into an auction house that wants you to pay them upfront. So that's something that you can avoid. So that makes it a revenue reducer revenue reducer revenue reducer. Okay. So, you might be asking, okay, you're talking about all this, like, the revenue, the expenses, revenue reducers. But Alex, what is the actual process of, you know, creating value for a domain? Because you can create value from a domain or for a domain and make it more valuable than when you bought it. And that might make someone want to buy it. So okay. How do you do that? So you build value by getting it traffic. So let's say I buy supremerumham.com. And I want to sell it, I want to I don't want to keep it for myself, I want to create value for it. So here's what I would do. I would increase the domain authority, that's the first thing I would do, right? So I get my backlinks, I'd create a website on it, turned it into a website, I just do all my SEO stuff, create backlinks generate traffic, you know, post it on social media. And I just increase that SEO score, right. And that way, it's creating value for people. So um, so yeah. So the if you remember the top most important ranking factors for SEO is direct website visits time on site, page per session bounce rate total backlinks, total follow backlinks content length security sight so I just folk on, you know, total backlinks total follow Links. I might, you know, in quotes, add a blog and just start writing about how this domain has a lot of value. Right or in the case of came from ham calm. I would just talk about myself, I guess Then I would create social media handles. So I'd create. I can't create supreme ram him at supremerumham because I am but then then I put it on social All media, right? I would like in my Twitter bio, I would put a link to supremerumham.com I'd make a Facebook Nope. I wouldn't make a Facebook. But there are other social media. I'd Oh, I'd post it on Reddit, right So, yeah, so create social channels, generate traffic backlinks, make it into a website and that way I would be able to like show this website to people. I'd Be able to have a product launch and get that backlink right Because even if the domain authority is five, it's a head start for the new owner. The new owner doesn't have to struggle to get their domain authority to five Because it's already there, right? And then they can build off that right? Okay, so The second step of the process would be too listed for sale or auction, right? So I give them all these stats, I'd be like, Hey, this is how many backlinks it has. This is the domain authority, you're already getting a head start. So I'd list it. And then once I listed I would promote it, I put it on Twitter. I put it on other social media channels. Right. So that way if someone sees my, my domain is for sale, I could sell it. Right. Okay. So, Alex, what if there's not a supreme ROM hammer calm in my head? And I have to, you know, find a domain that I think has value like what's the formula for finding a domain that has value? Okay, so I couldn't get a clear one on this, and I I'm going to talk about this a little more later. So as far as I know, the formula for finding a domain with value is the extension first of all. So that's dot com dotnet.org.edu comm Pair two.io dot XYZ dot TT Because those are most common someone will Remember supreme from ham comm over supremerumham dot XYZ, right? Um, yeah. And then there's keywords right. So it's So bitcoin.com has more value than supreme ram ham comm Because bitcoin.com or Bitcoin is something that people are looking up themselves. And are more likely To our Go to the website directly All right. So then That also falls into Are people searching for it? So when I was Working at if this job if domains have what domains of value, it would show me like, Yeah 20 people a month are searching for this 1000 people are searching for this. So are people searching for it, then you'll probably get direct traffic and then this domain has value. And then also there's existing SEO. So what's the domain authority of this website? How many backlinks does it have? Those are all things to consider when valuing a domain are people are people going to find this website? That's basically what you have to think of. Right. So yeah. So then what are the problems of you know, the domain industry that I found, so finding valuable domains and in the premium Report. I will talk about this some more. So, um you have your website that you buy domains from and some, some of them have appraisal tools so they'll tell you like, Oh, this is $20 This is 100 knowledge. This is $75 that that's the value of the things you're searching for. But how do you find the $1,000 domains? Right? Um because I I couldn't find any right by like By like my brain by typing in Bitcoin calm supremerumham calm. So how do you find those domains on your own what is the formula yes like Well, I told you a formula but like, How do I know? Right? There are some tools out there that you could pay money for that information. And they'll tell you like, Oh, this is definitely worth $1,000. So yeah. Okay. And then the revenue idea I had is, I'm a domain appraisal standard. So I would go to different domain appraisals. And I'd get a different number for every single domain appraisal have the same domain, right? So there needs to be like a standard. And then these, these places where you buy the domains, they can adopt that standard and you'd get the same value for each one and that would help the industry you know, get more people involved. Make the transaction is a little easier because if you use one domain appraisal, then you list it for that domain appraisal. So let's say it's $100. But then you're the people put that want to buy that domain. They get an appraisal from another service and that gets a vote. You are $50 you know that is an issue that can easily be solved Right. Okay, my opinion. So what is my opinion of all of this? Um, many people think that buying domains is dead. I talked to someone and they about like selling domains even. And they were like, but that's old. And does anyone actually buy it? Yeah, there are domains that sell for, I think Vegas calm or Las Vegas calm, sold for six figures. Right? So this is still a thing. But that's good for people that are interested in it. Because if people think it's dead, then there are less people to compete with for domains. Right? So if you think of a domain that has value and you go out and search for it, and it's available, there's probably a few people that are out there trying to buy it right so you have easy access to it. And when I say this, I mean domains that you type on your own. And you find that this domain has value. I'm not talking about domains that are already up for auction. I have to say that Okay, and then another benefit of people thinking that the domain industry is dead is you're probably not going to get like the get rich quick scheme guys. right because this industry Trees dead. Why would someone want to make a quick buck from it? Right? Okay. That's all I have for this episode. Thank you for listening have an nice day. Bye