Blogs about how you can best sell your domains or stories about how you may have sold or bought a domain in the past.

3 & 4 Character Domain Clean-Out!

3 & 4 Character Domain Clean-Out!

A ParkLogic client is cleaning out over 80 three and four character com/net/org domains! Some of the domains contain repeatable characters like pppp.net and there are a number of three-character dot net and org’s as well.

Escrow.com

The domains are priced to sell and we anticipate that they will be snapped up quickly by a buyer. The first buyer to reach out to Chris (see contact details below) and make an acceptable offer will secure the portfolio.

The domains will not be sold piece-meal but rather as a complete group. If you are interested in getting the full list of the domains then don’t hesitate to reach out to Chris Leggatt. He can be reached at “cleggatt at parklogic.com”.

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What's The Value Of Your Domain?

What's The Value Of Your Domain?

In today’s video I discuss what makes a domain valuable and why very little underpins the current Chinese domain market. A lot of domainer’s have banked on a continually rising market and sadly, many of them may be in for a surprise when the Chinese market experiences a correction.

This is a really important and interesting point to discuss. There are a couple things that dictate what your domain name is worth and what kind of price you can be selling them for.

Watch the video and take part in the conversation by leaving a comment bellow!

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Domains For Sale - 3 and 4 character com/net/org

Domains For Sale - 3 and 4 character com/net/org

ParkLogic has a client that is doing a little house cleaning on their domain portfolio and is placing eighty-six three and four character COM/NET/ORG domains for sale. The domains have been priced to sell.

A few of the standout .com domains include: kdrz.com, mkgw.com, trkx.com and pppp.net All of the domains have been categorised as either 3 or 4 character, whether they contain “aeiouv” and also numbers.

Please contact me (mgilmour at parklogic dot com) if you would like to be sent the full list. Below is the offer process that will be conducted.

1.      All offers are to be submitted by the 16th Dec.

2.      If the Buy-It-Now price for the domain is reached then it will be immediately sold.

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Working With Domain Brokers - Part 2

Working With Domain Brokers - Part 2

I’ve recently engaged a number of domain brokers to assist me with the sale of a few domains. The first thing I said to them was, “What do you think the domains are worth?” Despite my years in the industry I am unlikely to know what the “sales” market is saying right now. I’m a domain traffic specialist, not a full-time sales broker.

What I’d done is bypass the question of, “What I think the domains are worth” and jumped straight to getting the professional advice. In many respects, I’m an ideal broker customer. I want their advice and I will then accept it…..so the domains are priced to sell!

Escrow.com

I’ve received a number of offers for my domains from the brokers and they all seem to be asking whether I want to sell. In my opinion, this is a little silly. The reason why I engaged the brokers is to GET their advice. What I would like to see is an email which says, “Here’s the offers Michael, based on my experience and current market comparables I recommend that you accept.”

What I’m really saying is, “How the heck do I know whether I should sell or not?” I want the broker to provide me with their professional recommendation. Once I have this recommendation my reply would be, “Done! Let’s go through the escrow process.”

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Working With Domain Brokers - Part 1

Working With Domain Brokers - Part 1

When you really think about it, professional domain brokers have one of the most difficult jobs in the world. They have to manage both a domain owner’s and a potential buyer’s expectations and walk a tightrope whether they get paid or not. I’ve been doing a lot of thinking about the brokering industry and thought that it was about time I wrote an article or two on the topic.

Domainers, engage the services of a domain broker because they want a domain(s) sold. The reason they do this is that to date they have not been able to sell their domain at their anticipated price point. They then pass their domains to a broker in the hope that by engaging the services of a professional they will succeed in attaining a great big windfall.

Escrow.com

So what’s the first thing that a domainer does? They tell the professional what their domain is worth. How stupid is that???? The reason why they’ve just engaged a broker is to get their professional advice on the value of the domain. A good broker is a person that should have the pulse of the market….not the domain investor that has, to date, fundamentally failed to sell their asset.

Here’s the difficulty for the broker. In most cases, the domain is worth precisely what someone is prepared to pay for it. Sure, they can guesstimate, but a more professional broker will more often than not say they need to do some research on the sale price. What they are really saying is I need to make some calls, rustle a few bushes and see what falls out. This makes perfect sense to me.

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Buying and Selling a Traffic Portfolio - Part 6

Buying and Selling a Traffic Portfolio - Part 6

In the previous five parts in this series I’ve covered a lot of ground on how to better buy and sell a domain traffic portfolio. In this article I’m going to expand upon the “Domain Risk Index” (DRI) which is a tool that helps you make better buying and selling decisions.

We developed the DRI as a domain and portfolio analysis tool a number of years ago for ParkLogic clients. In summary, the Domain Risk Index (DRI) mashes together about twenty different metrics to produce an index between 0 and 100. Zero represents HIGH risk investment and 100 is a NO risk investment.

Escrow.com

The various metrics are weighted according to their impact on an investment’s return. Investors are typically interested in stable returns and the index allows them to gauge the amount of risk that they would like to take on.

What we then did was take a large sample of domains that statistically represents the Domain Industry and graph the results on a chart over time (orange line above). The blue line represents the ParkLogic account owner’s performance on the scale.

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Buying and Selling a Traffic Portfolio - Part 4

Buying and Selling a Traffic Portfolio - Part 4

So you’ve done your due diligence on the domain portfolio that you wish to acquire and everything looks like it’s good. All you have to do is part with your hard earned cash and wait for the authorisation codes so that you can transfer the domains into your registrar. So what’s the problem? A lot!

What happens if you send off your money and the seller decides not to transfer the domains. They now have your cash and the domains. What happens if you send your money and the domain statistics have been fabricated? What happens if you transfer your dollars and discover that the stats have been pumped up with purchased traffic? These are all good questions and I’ve heard story after story of people who have been burned by unscrupulous sellers…..so my advice is BEWARE!

Some buyers try and solve this problem with a contract. Personally I find that they are almost worthless. If you have a person that is prepared to steal your money then reneging on a signed contract is probably nothing big for them. So what’s the solution?

In a nutshell I would recommend using an escrow service. With a good quality escrow service both parties (ie. the buyer and seller) can agree to specific terms and a middle-man handles the actual transaction.

For example, you transfer your money to the escrow service and the funds are not sent onto the domain owner until the domains are under your control. This at least stops people from running off with your money and the domains. You can actually specify a variety of conditions that are agreed by both the buyer and the seller that the escrow company can verify before the seller can get their hands on your cash.

Seller financing has become very popular. The escrow company holds the domain in their account while the financial obligations are met. Say $12000 being paid in 12 monthly instalments of $1000. My only caution is can you imagine the headaches involved if the escrow company ceases to operate or becomes insolvent during a transaction of this kind. This wouldn’t be pretty!

There are a number of Escrow companies that domain owners use with Escrow.com being by far the most popular and the longest established. Over the years, they’ve spent a huge sum to ensure that they are in compliance with the various governmental authorities that manage the escrow industry and ensure that it’s clean.

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Buying and Selling Traffic Portfolios - Part 3

Buying and Selling Traffic Portfolios - Part 3

In the previous two articles we looked at managing legal risk and also the different types of traffic that often flow through to domains. In this article I will be examining the other influencers on the returns from a traffic portfolio.

The first thing to look at is where the traffic is coming from. For example, is it mainly USA or is it from China? Chinese traffic tends to be paid much less than traffic from the USA.

A number of years ago I did an analysis on the penetration of credit cards in a specific geographic region and how this influenced earnings per click (EPC). Cash based economies like China tended to have a much lower EPC. The reason being that marketers have a much more difficult time tracking spending money online to ultimate sale of the goods if the transaction is constantly being pulled off-line.

I personally believe that over the years ahead many of these burgeoning economies will adopt credit cards and the online cycle will be complete for marketers. So watch this space!

When you buy a traffic portfolio you are always looking for any “free” upside. An example of this would be if you were getting paid 90% from a monetisation provider but the person selling the portfolio is only getting paid 80%.

We’ve had ParkLogic clients purchase portfolios that have been held at a single parking company and then placed on our system. From experience, typically no parking providers wins more than 20% of the traffic on our platform which means that the acquisition would receive more revenue 80% of the time if move to other platforms. This typically provides a 30% uplift in revenue via our algorithms and processes and this dramatically reduces the payback period for the investment.

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Buying and Selling Traffic Portfolios – Part 2

Buying and Selling Traffic Portfolios – Part 2

This is the second part in a series on buying traffic domain names.

Once you’re comfortable that the legal side of the portfolio has been addressed then you really need to dive into the traffic numbers and do some research into where the traffic comes from.

So let’s get back to basics. You’re about to purchase a traffic portfolio. The first question that you should ask is, “Where does traffic come from?”

Traffic typically comes from the following sources:

1.    Direct type-in

Generic or short domain (eg. Beds.com, gx.com.au)

2.    Typos

Typo of a generic domain (eg. Fruit spelt fruit)

Typo of a weak trademark domain (eg. Joespizashop.com instead of Joespizzashop.com)

Typo of a brand (eg. Verison instead of Verizon)

3.    Link based traffic

4.    Purchased

5.    Hijacked traffic such as tool-bars and NXD traffic.

In the above list of places where traffic comes from I’m making no attempt to try and pontificate on whether they are appropriate traffic sources. I’m only indicating that they are sources of traffic. So please do not get upset at the mention of typo, trademark, purchased traffic etc.

Many years ago I purchased my second domain name and it failed miserably to provide any sort of return. Each and every year I faithfully registered the domain to remind myself to ALWAYS ask the question, “Where does the traffic come from?” In my case, the domain had a lot of Russian bot traffic that didn’t monetise at all. There’s nothing like a $10 annual learning course to remind you of an important lesson.

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Buy and Selling Traffic Portfolios - Part 1

Buy and Selling Traffic Portfolios - Part 1

I was reading a forum recently and another domain investor was asking about how to price and how to buy traffic domain portfolios. It was a really interesting question that caused me to think about how I price my own portfolios and what I look for when seeking to buy.

It should be stated right up front that everyone has a different risk/return appetite. Some people love to live on the edge and push the limits while others prefer to have a more sedate, stable investment profile. Whatever your risk/return ratio I’m sure that you will appreciate the following pointers.

Traffic domains are typically sold on multiples of months of revenue. So if a domain was earning $10 per month from being “parked” (ie. advertising revenue) then you may pay 24 months revenue for this domain. This would make the purchase price $240. Note that this equation inherently takes into consideration the registration cost of the domain for the two years.

The number of months that you pay for a traffic domain is greatly influenced by a number of factors that I will go through in this series. How much you are willing to pay will ultimately depend upon your risk profile. As a benchmark a domain traffic portfolio typically sells for 24 months revenue but like I said this can be dramatically influenced by your risk profile.

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