Just got a counter offer back from a $75 offer for a 3 word domain $1450 ?!&WTF~#% just counter final offered back $90
It's only a nice to have domain so I'm amazed at $1450
they price very high, yet offer very low for domains if you want to sell.
i enquired about a domain bought on this forum for £100 and missed it so i went through the whois and contacted them about it and they wanted $8000....:shock:
i was alright after ten coffees......
I still think most of the posts on this thread are missing the point.
Sure, you're losing lots of volume when you set your prices "high" but it may very well still be a better scenario than selling large quantities of names cheaply.
With 90,000 names, if they sell 1% of their inventory a year that's 900 sales. And if they average just $1,000 per name sold (an extremely low AVERAGE), that's $900,000 generated from sales, or about a 100% annual return on the $450,000 a year in renewal fees.
And frankly, I think those are VERY pessimistic numbers. Their average sale price is probably higher, and given how often I see their tag appearing on decent names they're probably selling more names than that too (a 1% churn is a joke if you have a strong portfolio). And that's without factoring in a single penny of income from any other source than sales.
End-users are FAR less price sensitive than domainers, so why artificially drop your prices when there's no need to? With 90,000 hooks in the river, you must be catching SOME fish every day - even if you have no idea from one day to the next which fish you'll catch (domains you'll sell) or how big they'll be (how much you'll make from each one).
The larger your portfolio, the more that averages become your friend, smoothing out the dips and troughs in your sales income. So long as you're COMFORTABLY making more than the renewal fees you need to maintain your domain holdings, you can do whatever you like and still make a profit. Everything else is tweaking...
Added: I just checked a "random" selection of nice keyphrases in the mortgage/debt consolidation field (good enough that I would have registered any available names from the list). 106 names on my little list, and 7 turned out to be owned by NOKTA. That's 6%!
Fantastic explanation Edwin and so true when you put it down in words like this - thanks once again
I still think most of the posts on this thread are missing the point.
Sure, you're losing lots of volume when you set your prices "high" but it may very well still be a better scenario than selling large quantities of names cheaply.
With 90,000 names, if they sell 1% of their inventory a year that's 900 sales. And if they average just $1,000 per name sold (an extremely low AVERAGE), that's $900,000 generated from sales, or about a 100% annual return on the $450,000 a year in renewal fees.
And frankly, I think those are VERY pessimistic numbers. Their average sale price is probably higher, and given how often I see their tag appearing on decent names they're probably selling more names than that too (a 1% churn is a joke if you have a strong portfolio). And that's without factoring in a single penny of income from any other source than sales.
End-users are FAR less price sensitive than domainers, so why artificially drop your prices when there's no need to? With 90,000 hooks in the river, you must be catching SOME fish every day - even if you have no idea from one day to the next which fish you'll catch (domains you'll sell) or how big they'll be (how much you'll make from each one).
The larger your portfolio, the more that averages become your friend, smoothing out the dips and troughs in your sales income. So long as you're COMFORTABLY making more than the renewal fees you need to maintain your domain holdings, you can do whatever you like and still make a profit. Everything else is tweaking...
Added: I just checked a "random" selection of nice keyphrases in the mortgage/debt consolidation field (good enough that I would have registered any available names from the list). 106 names on my little list, and 7 turned out to be owned by NOKTA. That's 6%!
I then checked a list of 101 furniture-related keyphrases and 23 of them (basically 23%) were owned by NOKTA.
I'd venture a guess based on this and on past experience that it would be a conservative estimate to say that 5% of all COMMERCIAL domains in the .co.uk namespace are owned by NOKTA, even though they only own about 1.1% of the total number of registered domains. That's not such a stretch when you think about all the millions of domains that were registered by companies and individuals who were going for something "brandable" or who just didn't care about keyword research (or hadn't even heard of the concept).
Edwin, you miss a very critical point. In order to bet 450K you should have at least a 1 million in your warchest. There is an amortization of 90000 hooks in the river don't forget. Besides consolidation suggests that your calculations would not be working for them at the moment!
We use essential cookies to make this site work, and optional cookies to enhance your experience.