Could domain resellers be any more annoying?

Hello,
just remember it takes two to tango, I have bought many domains in the past where I would have paid ten times the price if I had too.
It does not matter what they paid for it, the point is what it is worth to the buyer.

How much would you expect to pay for sex.com or toys.com or cars.com? They're worth a fortune. It's a virtual real estate investment and they of course, hope to profit from that.

Why would this make money online business be any different from any other make money online business? It's called domaining and it's a viable business model.

If the domain isn't worth the price they are asking, don't buy it, but some domains are a gold mine. They're pretty much worth what a buyer is willing to pay for them.

The only way I would purchase is $35,000 domain is as an investment that I hoped to profit from later. Get yourself a $9 domain if that's what you want.

Let's say someone bought a pizza shop for $100,000. This building sits across the street from a huge college campus, where tens of thousands of people see it every day. There must be some pretty crazy foot traffic beating a path into that store.

Wouldn't need much outside advertising -- just snag the foot traffic, offer some crazy deals and launch a "word of mouth" campaign.

Now the guy who bought it for $100,000 wants to sell it to you for $250,000. Is that fair? I mean, why should he get a $150k profit when he hasn't even done anything except hold the building hostage since he bought it?

Of course all prospective buyers have options:

-- They can try to negotiate the price down.

-- They can pay the $250k and start cashing in on their investment.

-- They can go buy a pizza shop that sits 20 miles outside the city limits.. on a gravel road that sees more deer than cars. But hey, that one is cheap.

Cheers,
Becky

I've been buying and selling domain names for 3 years now and have made a decent living from it nothing major but small paydays do add up and I've lost money at it as well but the thing you need to look at is this ... if not you then who?. So someones got to play the game and a tough game it is but a glorious one when a domain name gets sold. It's like why do people jump out of airplanes, not because their stupid?, no it's because they like the rush it creates. Well same as buying and selling domain names. Feel The Rush!

What R Hagel said!

Seriously, RJP, if the names are so worthless, why are you trying to buy them?

John

Ryan, it's all driven by supply and demand. There are so many people looking for domain names, and so many willing to pay top dollar, that people are putting up high prices and actually selling.

There is no magic behind it all.

John

Hey why are you so angry?

It is a question of business in internet marketing. If you don’t want to be cheated you have to know the technique of bargaining.

And it is true that a domain of high worth could be so expensive. Because if you want the domain name, youtube.net, then the price will rise to million dollars, actually you don’t find it anywhere.

Because due to the search method of Search Engine the domain name plays a big role. It may create revolution in driving traffic.

Ryan, you showed your full hand when you identified yourself as a, frustrated domain seeker.

The deal is, it is called Capitalism and if you can't beat'em... then join'em!

This site: Men's Online Magazine | TheRugged.com recently sold on www.therugged.com - Website for Sale: Premier Men's Online Magazine: Don't Miss This! — Flippa for almost $18k.
Winning Bid: $17,495 Buy It Now bid
Bid History: 12 Bids (0 Pending) Completed: Mon, Apr 12 2010 (25 days ago)Listed: Wed, Apr 07 2010 (1 mth ago)
Was it worth almost $18k?

That's a rhetorical question.

It had to be worth it to the buyer and bidders whatever their reasoning(s).

Having shared that info, if you don't join them you will remain a frustrated domain seeker. When I suggest joining them, I'm not speaking so much in terms of flipping domains but in understanding: domain prospectors, domain parking and the ebb and flow of buying and selling aftermarket domains.

That information puts you in the driver's seat to grabbing some hot domains at dirt cheap prices.

You'd be amazed at the deals you can find behind the scenes from domain prospectors when you've got your T's crossed and your i's dotted.

I consistently buy domain names listed in the $3500.00 to $6500.00 range for $29.00 to $200.00. How? Here's what I do. First, I thoroughly check out the domain prospectors for the domain names I'm targeting. Here's the information I'm looking for.

(a). The number of domain names they are hording. As a general rule, the higher the number of domains they are hording, the greater chance you have of cutting a deal.

(b). How is the site you're targeting monetized? If they are parked, what company are they parked with. This helps you determine if the site is making money or not. NOTE: There are very few domain name parking companies that make money for domain prospectors. Most of those sites just sit there, collecting dust. However, if they have a live active site built, your chances of snagging a sweet deal is diminished.

(c). If it's a parked domain you want to check and see if the site is SEO Optimized? If it's not that's a good sign indicating that you're dealing with either a lazy IMer or a novice domain prospector who knows little to nothing about Internet Marketing.

(d). Does the domain name/site have any backlinks? If not, this is another good sign that you can push for a deal. If it does have a lot of backlinks, your chances of snagging a deal diminish.

(e). Did the domain prospector list the domain name in any of the major web directories? If he or she didn't, this is another good sign that you have a potential deal on your hands.

(f). How long have they been hording the targeted domain name. The longer they've owned it without any activity, the better chances you have of making a deal that will be accepted.

The bottom line; you need to learn how to ferret out potentially valuable domain names as opposed to allowing yourself to get frustrated.

Isn't that why you joined the WARRIOR forum?!!!

Aside from the manual method, you should also develop an automated system of monitoring soon to be expiring domain names and be trigger ready to pounce on those names in a nanosecond.

You can use a service such as: Deleted Domains | Search for Expired, Expiring, Dropped Domain Names or software such Domain Samurai, which is made by the same folks who make Market Samurai. If you search, you can also find Expired Domain Name scrapers.

I would avoid engaging in utilizing the domain name backordering system until you become savvy domainer. What most people don't realize with the backordering system is that there may be at least a dozen or more companies that have taken non-refundable back order locks on the same domain name. Which means your chances of grabbing up that domain are greatly reduced unless you are the person who placed back orders with all of the major players.

All in all, your issue is; you haven't yet learned how to navigate the domain name aftermarket. Once you learn it, you won't be frustrated!

domain name is super important in SEO considering your keywords.
Having your targeted keyword or words in domain name are very helpful in search engine rankings.
I have 2 domains listed for 25 000 that yes i paid 10 bux for and they are .mobi but I slowly build links on them and I will not add content just have them parked and I will get 25 000 or more for them even if i wait 10 yrs idk thats what there worth

As a domainer (and IMer), all I can say is you have a lot to learn about the business. The real estate analogy is apt here, since there are parked names that earn money with simple type in traffic, no SEO needed. I have a few that make $300 to $500 a year, so why would I sell them to you for $50?

Even your example is way off the mark. FunToys.com is a 6 character dot com with search volume of 165,000/month and 415,000 exact matches. It's taken in nearly every extension except .name, .tel, and a few other irrelevant ones.

More importantly, it MEANS something, people search for it, kids want fun toys, and those kinds of names are becoming rare. Just guessing, but I bet it would earn over $500/year parked, and probably much more developed. That means that as a simple investment it's probably worth at least $5,000 - $10,000.

Finally, lots of domains, especially good ones, were NOT bought for $9 anytime recently. Many went for thousands, even tens of thousands of dollars or more. It's a very large, liquid market. Take a look at what's selling and for how much these days here...

Biggest Domain Sale Reported So Far This Year Tops Our Latest Chart Followed By 2nd Biggest ccTLD Sale

OK, enough ranting. If you want domain deals, take at look at sites like Sedo, NameJet, DNForum.com, NamePros, and other reseller resources and you can still pick up decent keyword names for under a grand. Or look for "used" names that recently dropped at sites like JustDropped.com.

Jonathan

PS: I didn't even mention the SEO benefits of domains since others already beat me to it.

There are domainers who understand the value of the domains they own and offer for sale, and there are domainers who have very little knowledge and think they're going to sell any domain they register for absurd amounts of money. This is the separation of real business and dreamland. Unfortunately for career domainers like me, there are 100x more of the latter who pollute the marketplace.

The amount one pays for a domain is absolutely irrelevant. To acquire the good domains that have a high market value takes a LOT of time and research in most cases.

By your logic, people who create an e-course and sell it for $497 100 times over should not have the right to do so. What does each copy cost the seller? $0. Or $1 in bandwidth.

"P.S. And WHY do they all say "make me an offer" when they're just going to counter with their ridiculous prices?"

Because the value of a domain is very subjective. I can't speak for other sellers, but when I list a domain for sale, I know what I expect to get for it. I have a definite number in mind. If I get an offer that comes close to what I expect, I'll sell. I often accept the first offer received even if it is less that I expected. Reason: Cash flow. I'd rather sell 10 domains for 75% of their value than sell one or two at 100% or more of their value. If a domain is close to renewal time and I haven't received an offer in a long time, sometimes I'll accept an offer of $50 even if I feel the value is $350. If I had listed it at an actual dollar amount of $350, chances are I never would have had the opportunity to sell at a greatly reduced rate. The other end of the spectrum of course is getting an offer well above what was expected. These make up for all the domains in the portfolio that never sell, and take a loss.

But I have it, and you don't.

If you don't buy it, guess what it costs me? $9 a year. That's 75 cents a month. Less than three cents a day. I can afford to keep this domain forever. I will never let it expire. You will never get to have it. Because you have asked about it, so I know you want it - and that means someone else probably wants it, too. Maybe that someone else has $35,000.

So how much do you want it?

Now, keep in mind that I'm hoping you're a new internet business jockey with venture capital funding and a billion-dollar idea. I've been in that seat, and trust me, anyone in it doesn't even blink at $35,000 for their brand name on the internet. In fact, that quote is missing a zero or two.

So give the guy a reality check. You're a small business. You don't have that kind of money, and if you did, God knows you wouldn't spend it on a domain name. Why, that domain is worth no more than (a fraction of what you are willing to spend), but since you've had it for (number) years... okay, I'll compensate you for your $9 a year in registration, so all your sunk costs are covered and my offer is pure profit.

This is a game. Learn to play. If you want lessons, go to an Arabic-speaking country and shop.

I find it ironic that in an IM forum someone is complaining about the practice of capitalism.

It doesn't matter what they paid for it or what they're doing with it. The domain name is worth whatever someone will pay for it. If what they want is more than you want to pay then move on - gracefully.

The fact is that I only have one opportunity to sell a domain name and once I've sold it, it's gone.

I really do appreciate the wide range of perspectives I've seen in this thread. Some have been very educational.

In hindsight, I see I was perhaps a bit too caught up in the moment when making my original post and wasn't careful enough to be more specific about the points I was trying to make. Oh well, as I said, it did make for an interesting conversation.

I've been accused of several things here, but I stand by my original statement that this particular "domainer" was indeed somewhat crazy. I didn't mention that I was inquiring about a .CA (Canadian) domain.

Looking at this list of the Top 100 .ca Domain Sales of 2008 that would rank at #5... so I think it's fair to say it was somewhat "ridiculous" a price.

Thanks especially to those offering some tips on aftermarket buying. I'll be putting those to use this week with sellers that hopefully want to do business.

-Ryan

It is even worse that they will buy it off you for the cheap and put an exorbitant price the next minute. Try to sell your domains to a reseller, they will tell you it is worthless.
Once in their hands, it is Diamond!