Another great nokta sale

[doodlebug]

Cheers Jimm, hadn't noticed that

 

[Systreg]

The guy that runs MyVoucherCodes.co.uk employs over 100 people and has a beach house in Barbados, so I think so yes.

His voucher site is mentioned on Yahoo money pages today: http://uk.biz.yahoo.com/18062010/389/ok-steal-partner.html

 

[retired_member12]

His voucher site is mentioned on Yahoo money pages today: http://uk.biz.yahoo.com/18062010/389/ok-steal-partner.html

Good spot there Systreg.

I don't know who the author is, but judging by the way she thinks about splitting the finances, costs, etc, she has got to be one of those young, totally out of touch types who spends too much time twittering in 'Coffee Republic', thinking of money and relationships in two entirely different lobes. I wonder what advice she has for when the bloke loses his job, or if the tart drops some kids?

Seriously, what a load of crap!

 

[atlas]

One sale like that lets them renew over 3,000 domains for 2 years! They only need a very, very low success rate with that business model to stay profitable and leave their portfolio basically "untouched" at the same time. If I had 50,000 domains I'd probably do exactly the same...

So, basically, the more domains you own, the higher the price you can charge?

 

[Edwin]

So, basically, the more domains you own, the higher the price you can charge?

Yes and no. Assuming that they are generic domains of sufficient quality that somebody would want to buy them, then I would say yes.

The more quality domains you have, the more you're increasing the chances that somebody somewhere will pay a lot of money for one of them (assuming that you've priced them that way). This leaves you more leeway to experiment and to price your domains higher.

Another way to look at it...

If you charge 1,200 pounds for a domain name (and sell it), that "carries the cost" for about 200 more domains. You need to sell 0.5% of your inventory every 2 years - 0.25% a year - just to break even on renewal costs.

If you charge 2,400 pounds for a domain name (and sell it), that "carries the cost" for about 400 more domains. You need to sell 0.25% of your inventory every 2 years - 0.125% a year - just to break even on renewal costs.

If you charge 10,000 pounds for a domain name (and sell it), that "carries the cost" for about 1,500 more domains. You need to sell 0.067% of your inventory every 2 years - 0.033% a year - just to break even on renewal costs.

Now obviously you'll sell more domains by charging 1,200 pounds than you will by charging 2,400 pounds, and much more than by charging 10,000 pounds per domain.

But will you sell ENOUGH MORE to make it worth your while?

Really, you have to try it and see. Play with the prices and try and find the "sweet spot" where the pace of sales is enough to pay for renewals and maximise your profit.

 

[atlas]

Thanks Edwin!