Why Do You Buy Domain Names?
Why do you buy Domain Names? That is a question I have asked myself before. Now to be clear, I buy them for one reason, to make money online. There are very few domains I buy without a purpose, it should either have keyword potential for minisites or immediate resell potential which is why I probably have always been so adamant against brandables with no immediate keyword value or generic potential.
After I read the post on Domain Name Wire yesterday concerning making For Sale a larger option on parked pages it made me think a bit about why people domain and the various models they use to make money (or attempt too). I think in many cases domainers are a mix of the various models below. Which model do you fit?
High End Speculator - This domainer model buys a name based on pure speculation of moving the domain at a higher price, normally at a significantly high ROI. This person does not focus on hand registration of domain names but rather on picking up premium names and moving them. This is the pure Domainer model as I see it. This model needs bigger For Sale signs:)
Hand Registration Flipper - This model works well for getting started, picking up domains on the cheap and flipping them for 2, 5, or 10 times the registration cost within a few hours, days or weeks. This is a great way for people to get started and move upmarket on domains. Normally these are sold on the forums.
Minisite Domain Flipper - Domainers doing this buy domains, put minisites on them, and then flip the domain based on revenue/traffic multiples. This works well for people looking to buy revenue names and do not want to necassarily develop them.
Passive Income Domainer - This domainer type buys domains not to sell but to create an income stream from the parking (or affiliate) income generated. This domainer really does not care about for sale signs and is more concerned about creating a stream of income that requires little upkeep or effort per day. If they happen to get an offer great, but their point is streams of income.
Site Developer - These domainers buy quality domains to develop into fully blown out websites, each domain purchase is for a specific purpose and has a specific business model associated to it. Some would say that this person is not a domainer although more and more you see people talking on the forums about this site being sold or that sold being sold, but if you look deeper it was not a domain it was as developed site. A crappy name that gets developed into a successful site and gets sold at a high price is not a DOMAIN being sold it is a BUSINESS being sold.
Domain Collector - This person just likes to pick up domains to acquire items and have them, in many cases they may not realize this (sorry if you realize this is you after reading). They really do not focus so much on the revenue or domain selling aspects as much as acquiring large quantities of domains.
Expired Traffic Domain Flipper - This person buys expired domains that have traffic from sources such as backlinks, may have Google Pagerank, and normally has revenue associated to it. They make money moving these names based on revenue multiples and do flips after a few months. They can use this money to reinvest in more revenue names or invest in quality generics.
What model are you?
I am sure there are many other models that could be defined. As much as I think bigger for sale signs are great for many domainers in some cases the focus may not be on getting the name in front of the buyer but may be on finding ways to increase CTR or PPC values.
I just put up a new poll, vote for what type of domainer you are.
On a separate note, I have a buyer looking for Blog name, should be something focused on training bloggers , blog webinars, how to make money with blogs, something that matches those topics. Needs to be a .COM and price range is in the $100 range. Please use my contact me form if you have something.
Great Post Bruce,
Brandables are not the way to go we both agree on that. I see myself as a mix of a few. At first i registered names because I like them (Not Smart) but now I buy domain for mini sites quick flip or development. I only wish I could buy a few high end names if only I had the capital.
I guess I am in the category Domain collector but slowly turning towards
Site Developer ..
have a look at http://thebestVODKAintheworld.com
nice to meet you Bruce.
Ritz,
Nice to meet you too!
Nice little concept on the Vodka site.
Brian,
Everyone has had to work their way upmarket on names so don’t get discouraged, your passion for the industry will help get your there!
Everyone,
After reading the post I think I may have sounded harsher than I really meant to on the domain collectors, as long as people realize that it is not necassarily profitable it is just fine. Everyone of the models above has some value to someone, each person chooses their own way. Some are more profitable than others, but it just depends what a persons goals are at the end of the day.
Bruce
Brandable Haters! There are brandables and then there are _brandables_. I make a habit of seeking out the former and turning them into quick affiliate stores for passive income and possible end-user sales. Gotta learn the SEO/Dev game though. These are names that have very clear/relevant meaning and have a lot of gravity for consumers… But by all means… leave these type of names -alone-, especially those appearing on the daily drop list =)
LOL, Jason, great comment:) I actually get your point without even seeing the details on brandables compared to _brandables_
Your plan on using them is much different than invididuals who may be reg’ing 5000 random “words” that are pronouncable hoping someone decides that is their must have company name.
Hello Bruce,
that is what I call a very detailed article about the different ways to domaining. I am one of that persons who are going to develop his names into webs converting them into a network because all the domains I have are into the same market, so here I expect the better success
Salute, Chris
Its simple buying domains is an addiction the same as smoking , im not sure what i like more.. hmmm ah well just found – genericsmokes.com-