Domainers! LEARN About Domains You Sell. Stop Being so Desperate to Make a BAD Deal!

Morning Folks!!


Domainers! LEARN About Domains You Sell. Stop Being so Desperate to Make a BAD Deal! I just had to repeat that. Domainers are like Diamond miners except a diamond miner knows what a diamond looks like and the fact that some are bigger and better than others.


Most domainers do not know the difference between a $500,000 domain and a $5000 domain. They don't know it on either side. The overvalued pigeon shit and undervalued rare diamonds. WAKE UP!!


I don't know why 'Domainers' don't think it is important to know the difference. All they know is fast sale. No research, no understanding, just set a price and away they go. No rhyme or reason.


And speak about reason. I can take you on a journey on any given day and show folks domains selling for $2000 that have a 6 figure value and ones selling for $2000 with absolutely no value.


Stop treating unique assets that can NEVER be replaced as just 'Inventory'. It is NOT inventory unless you only care about volume. But that's a different game. Many games in domaining. So there are multiple paths to great riches but they all start and end with understanding why one domain is worth 1 million times another domain. Don't ya think???


Having patience is really one of the big keys to domaining. I am not sure why so many act as if they are a cat on a hot tin roof. More deals are lost from just being impatient. They want things right now and when it does not happen right now they get all antsy and frustrated. Take a doggie downer. A REAL deal takes TIME to negotiate. Weeks, months and even years.


So go grab the $5000 now because you don't have the patience to wait for the $500,000 that may only be months away. Instead you will work your ass off, make $50,000 and you will continue to let half million dollar deals just keep slipping thru your hands. Doing NOTHING makes a lot more sense than doing something STUPID.


Think twice before you sell. Think if it is the highest and best use. Stop being desperate and your incomes will skyrocket. GEEZ!!!


Still a bit miffed? Confused? Upset? And? So? If you want to relieve those negative feelings, then I suggest you read the next post that Danny Welsh has authored. It will make some of you VERY SICK! Those of you that left BIG money on the table just to score a dinner out! But it will empower many others who have not made that mistake!


Have a GREAT Day!

Rick Schwartz

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30 thoughts on “Domainers! LEARN About Domains You Sell. Stop Being so Desperate to Make a BAD Deal!

  1. Domainer

    Well I guess I fall into this category. No job, not much income and I need to sell Rick names.
    But I understand where your coming from

    Reply
  2. Roger

    Some people think that they are domainers, same as some people think that they are investors (real estate, stock, commodities, etc.), but they are not any of that. Some poeple think they can buy house for $200k and sell it in two years for double, but real value of such house may be less than what they paid for. Same with domains. There always will be winners and losers, not just between domainers, but within any kind of investors. However because we have seen a lot of wrong UDRP decisions, it is still much harder to be domainer than any other kind of investor. Domainers are not respected enough. Imagine you buy 1 pound of gold just to hold it for future profit, not for making any goods from the gold and someone files a claim, that you do not have a right to hold such gold, because you are looking just to sell it, not to use it and it will be taken from you possession. We need to have same right to hold domain names as an investment as people do with stocks, commodities, etc. To be clear – I am talking about domaining as investing, not about cybersquatting. Don’t mix domainer with cybersquatters.

    Reply
  3. Rick Schwartz

    GrandGreatPrize.com This is an example of PIGEON SHIT.
    GrandPrize.com. This is an example of a multi million dollar domain
    GreatPrize.com. This is an example of a decent domain, that means something that has modest or more value.
    GrandGreatPrize. This is an example of PIGEON SHIT.
    Adjective + Adjective + Noun = Pigeon Shit.
    How hard is that for ANYONE to get their heads around?

    Reply
  4. Domainer

    I get all that Rick. I am simply saying the small to middle domainers need to flip and grow. We dont have the luxury to wait for them knocking down our doors with 6 figure offers IMO.
    Good names are solid. Type in traffic. That one two punch and that direct navigation.
    I staying focused or trying too. The mindset of a small domainer. But thats the reality on things from where I sit.

    Reply
  5. Rick Schwartz

    My comments were not aimed at you Domainer.
    Just an example that popped in my head that I felf could demonstrate something.
    Point is if you buy and sell. Buy 3, keep 1. Buy 3 more, keep 1. Always try and keep the best ones!

    Reply
  6. Domainer

    Ok Rick. Understand. Sorry for the confusion.
    That part makes more sense now! 2 best pieces of advice by you and wont forget about it! Never! Thanks in our chat and extra motivation by you.
    Regards,
    Double your price!

    Reply
  7. Roger

    @Domainer -”Good names are solid. Type in traffic.” – Not necessarily! There are plenty of domain names with very high quality, 6-7 figure value and very low traffic.

    Reply
  8. Davinderpal Bhatia

    While it is true that a bird in hand is better than two behind the bush, it is also a fact that patience is a virtue.
    Sometimes it becomes very tough to decline $$,$$$ or $$$,$$$ offers.
    However in majority of cases eventually buyers will come with even higher offers. It is only a matter of time.

    Reply
  9. Jeff Schneider

    Hi Rick,
    “Think twice before you sell. Think if it is the highest and best use. Stop being desperate and your incomes will skyrocket. GEEZ!!!”
    There is for every Great .COM Foundation a”Highest and Best Use” You nailed it with this phrase, and the Highest and Best Use takes time to manifest itself, sometimes decades. The”Highest and Best Use” comes to those with Patience. Great Visionary Advice Rick
    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

    Reply
  10. Lawrence

    Timing is everything, the client who wants the name is everything and the motivation of the client is everything.
    Time is not always on your side, holding and holding can have its costs and subsequent loses.
    I have a domain that I was offered $150,000. USD for two years ago.
    It was getting great type-in traffic daily and huge SE traffic basically parked. It was a one word wonder. The purchaser wanted it for a development deal they were putting together. It was a name that could be both Adult or Mainstream.
    I knew based on the statistcs and parked traffic the domain was worth more, tried to negotiate higher and the purchaser walked.
    Google changed the way they display domain names that could be both Adult and Mainstream, Traffic droped heavily, best offer lateley has been in the $60,000 USD range.
    Waiting and holding the one word wonder is not always the answer, times change, trends change, buyers change.

    Reply
  11. Joe

    While holding on to a name may yield benefits, one must not forget that every single offer received won’t be there forever. Elliot wrote a great post on this yesterday.

    Reply
  12. Jeff Schneider

    Hi Lawrence,
    I would have to say that any Business foundation whose value rests solely on Google or for that matter on any one factor does not have all the stand alone qualities of a truly great Domain. You probably have a truly Great Domain its just that you have to focus on its other strengths and not just those embellished by Google positioning.
    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

    Reply
  13. Lawrence

    Hi Jeff, I was not focusing on Google positioning, I was focusing on the amount of money the domain was earning at that time vs the amount the buyer was offering.
    My point was, things can and do change, while you are holding out for an offer that reflects the highest and best use use of a domain name.

    Reply
  14. Anunt

    Rick, u and Danny and other bargain hunters should scoop up these $2k domains that are worth $500k.
    More opportunity for you…why get angry…just go on a domain buying spree…
    I admit i always sell quick…loss or gain…don’t matter…

    Reply
  15. Jeff Schneider

    Hi Joe
    Offers come and go, your Domain Foundation is eternal. If your .COM foundation elicits both an emotional and physical response it is eternally valuable.
    The .COM pool of money is continually rising as the chaff gets separated from the wheat. Wait for your Domains Best and Highest Use it will eventually get there and you want to be the owner when it gets there.
    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

    Reply
  16. Patrick Hipskind

    Hi Rick,
    A lot of domain investors are wondering what is really going to happen with the gTLD expansion, and how is it going to affect their investments. Many wonder if they should invest in the .com market now, or wait and see what happens. I believe you are correct as well as Mike Mann and the Costello brothers that in the end most of the new gTLDs won’t survive.
    This Is What Going Bust Looks Like For Most New gTLDs:
    The launch of the .travel registry was unique in that it was a single extension being launched. Yet, it took two years to reach 25,000 domain name registrations and the management of Tralliance had serious doubts as to whether the registry could continue. Under the new gTLD expansion program, hundreds of domain name extensions will be launched in a short span of time. They will be competing with each other to sell domain name registrations and establish market share.
    Even with extensive marketing, it is unlikely that most of the new gTLDs will reach the 25,000 registration mark before the end of year three. In a best case scenario, expenses of the registry are conservatively estimated to total $270,000 during the first three years of operation ($185,000 application fee, $10,000 website design, $25,000 annually in wages to operate the registry).
    In a best case scenario registrations build up annually to 8,333 by the end of the first year, then to 16,666 by year two, and 25,000 by the end of year three. The price per domain name registration is $15 annually. In a best case scenario, the Net Present Value of the project is $479,985 with an Internal Rate of Return of 59.226%. This return on investment represents gross revenue of the project before any shareholders get paid.
    NPV and IRR is calculated as follows:
    1. (-270,000)
    2. $124,995 (8,333 x $15)
    3. $249,990 (16,666 x $15)
    4. $375,000 (25,000 x $15)
    NPV is $479,985
    IRR is 59.226%
    In a worst case scenario but it is one that I believe will happen frequently, the majority of new gTLDs that launch and sell domain names end up going broke by the end of year three. They do not make it to the 25,000 registration threshold. By the end of year three they have only reached 12,500 annual domain name registrations, and have to price the annual fee at $10 per domain name. Again, expenses for the first three years of operation are conservatively estimated to be $270,000 ($185,000 application fee, $10,000 website design, $25,000 annually in wages to operate the registry). Under these conditions, the Net Present Value of the project is minus -$20,020 and the Internal Rate of Return is minus -3.235%.
    NPV and IRR is calculated as follows:
    1. (-270,000)
    2. $41,660 (4,166 x $10)
    3. $83,320 (8,332 x $10)
    4. $125,000 (12,500 x $10)
    NPV is minus -$20,020
    IRR is minus -3.235%

    Reply
  17. Jeff Schneider

    Hi Patrick,
    The truly hilarious aftermath of this whole gTLD saga is all their efforts will lead back to the .COM Foundation. Is this irony or what?
    By the way Rick I am looking forward to Dannys read on the ever increasing .COM money pool.
    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

    Reply
  18. UFO

    Think your costs are understated but in a simple analysis these new gtlds at 25k each registrations need to have 45million active domains being paid for in 3 years. This compares to 80m .com near the start of 2010 which is probably still constant.
    The 80:20 rule will kick in and the 20% will be the large players like google who’ll issue domains as a loss leader as part of a drive to get as many small businesses on board to cross sell them additional services. The other 80% will wither on the vine unless they have a new model that doesn’t follow the same path as all the other failures.

    Reply
  19. Jeff Schneider

    Hi Rick,
    There is an old saying in Marketing Strategy circles.” Watch what they DO and not what they SAY”
    So here we have Rick who is arguably the top Domain Marketing Strategist in the Industry putting together a major new internet business. His Inventory choices for success involve 90% plus .COM Foundations.
    This sound marketing strategy for success will go unrecognized by some,but latched onto by the Smart End users, and Domain speculators and ignored by many of the Domainer middle men who thrive on the unsuspecting Domain Owners.
    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

    Reply
  20. steve

    What about an adjective like fracking.com or the past participle fracked.com or just the nound frack.com
    I hate grammar.

    Reply
  21. Patrick Hipskind

    Hi Rick,
    Any domain investor who is writing a business plan or reviewing a business plan for a domain name development project can calculate the NPV and IRR easily by using an NPV calculator found online. I personally like the NPV calculator at DataDynamica.com, and I have no financial interest whatsoever in recommending this website.

    Reply
  22. EspressoCloud

    Hi Rick, Please don’t let the label,”inventory,” become a bad word! I like the word,”inventory.” Inventory is a great label, whether the purpose is to sell, or otherwise. I consider the domains in my portfolio,”inventory,” though I am following your directive to develop them out, instead of sell.

    Reply
  23. Danny Welsh

    RE:”Sometimes it becomes very tough to decline $$,$$$ or $$$,$$$ offers.”
    I get that, I do. But if the offers are typically unsolicited, your product/property is unique with no good alternatives (as the best domain names are), and you don’t NEED cash fast…saying”Not for sale, lease only” to those offers is a smart move.
    It only takes ONE company to see what you see as a win-win, to turn a one time sale for that domain name into a long term income stream with upside. So why not grab that chair on the beach and sip your pina colada and be patient? OR go out and find that company actively. Either is better than selling for straight cash in those scenarios IMO.
    The way I’ve seen is if the offers get progressively higher over time $$$ to $,$$$ to $$,$$$ to $$$,$$$…without you doing ANYTHING to market the domain name…you’ve got a keeper.
    Danny Welsh
    JointVentures.com

    Reply
  24. Christian

    I completely agree with Rick. I have been desperate to sell a few names and I know I left a lot of money on the table. Not $500,000 or even $100,000 but a few thousand was left. Its a good feeling to sell a name and then shortly after the reality sets it. Maybe I could have received more money. Did I ask? Did I play the waiting game properly? Did I negotiate the deal to the fullest? Most of the time I didn’t. Patience is the key to making great decisions, not good decisions.

    Reply
  25. Jamie

    I wonder if you would be willing to buy your name for 6 figures? I just bought it(on accident)at godaddy. On auction under KingRickSchwartz and KingSchwartz but 50g’s is max and 60 day transfer wait. I’ll keep if no sale. How could the domain king not king himself? I have both mike’s and frank also. You’re awesome and thanks for your advices. :)

    Reply
  26. Ramakant

    it’s a good thing that you sold out some pretty domain names and you are the Domain King? but will you please help me in telling out HoW to sell a domain or get a potential buyer?

    Reply
  27. Pivone

    you missed the fact that GreatGrandPrize.com would be valuable. If words in a domain are placed in an order that makes sense. The word “Great” in your example is just in the wrong place.

    Reply

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