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What are revenue domain names?

I'd love to know how much these guys are investing

     
11:26 am on Feb 12, 2007 (gmt 0)

10+ Year Member



I'd love to know what Eric Rice is teaching his friends. From dnjournal
Febrary issue page 2 (I'll post the URL if one of the mods gives the go ahead):

""In the last 12 months I have taught 4 friends to buy revenue domain names. In each case they have built portfolios that are producing revenue of $2,500-$4,000 per month. They were all new to domains. That itself is a testament to what is possible. Where else could someone build a revenue stream so fast?" Rice asked. "

So a few questions:
- What are revenue domain names?
- How much cash and time do you think these guys are investing to get the 2500-4000 per month?
- How can I be Eric Rice's buddy?

12:04 pm on Feb 12, 2007 (gmt 0)

5+ Year Member



Just to cover annual registration fee's at the cheapest registrar i know, my parked domains, at their current ctr, would require at least 4 impressions per day

i 'm not even comming close

12:31 pm on Feb 12, 2007 (gmt 0)

10+ Year Member



I'm in a similar boat centime, I've only got one out of my 50 domain portfolio that is making enough income to cover its registration around 5 times over.

The bummer is this domain is a trademark typo that I'm ditching because I can't sleep at night with that on my conscience.

My rookie-domainer *guess* is that Eric Rice's buddies are dropping a few hundred or thousand dollars a time on good generics and well-trafficked expired domains.

2:31 pm on Feb 12, 2007 (gmt 0)

WebmasterWorld Administrator webwork is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Chances are they are buying existing traffic domain names, ones with a verifiable earning record, and seeking to buy them at a low multiple (2-4Xs) of revenue.
3:02 pm on Feb 12, 2007 (gmt 0)

5+ Year Member



"In the last 12 months I have taught 4 friends to buy revenue domain names. In each case they have built portfolios that are producing revenue of $2,500-$4,000 per month. They were all new to domains. That itself is a testament to what is possible. Where else could someone build a revenue stream so fast?" Rice asked. "

With all due respect to Eric Rice, who seems to be a classy guy, reading that statement reminds me of those "get rich buying real estate" commercials that are run on tv.

It is very difficult to buy expired domains, that produce traffic, at a reasonable price.

Also did he state whether they were producing income only from PPC or did they develop sites. That would make a big diffrence. What method of income did he mean by "revenue domain names"?

6:39 pm on Feb 12, 2007 (gmt 0)

10+ Year Member



Don't underestimate the value of type in domains. Parking is the easiest way to monetize, simply point your name at their dns and go find another name.

Everyday domainers are adding to their portfolio's by picking up expired domains and buying existing domains.

Depending on the topic of the domain some domains only need a few clicks to earn a positive income.

Many domain aftermarkets exist, but new domains that make money are hand registered daily, hang out in this forum and there are many great tips.

Existing domains that earn revenue can be purchased from a few months to several years revenue.

Bottom line is this, if it can earn 2 cents a day it can provide 6% ROI, at 3 cents a day that's a whopping 60% ROI and that's the bottom of the barrel, look and you can hand register much better than that daily.

7:15 pm on Feb 12, 2007 (gmt 0)

5+ Year Member



>>Bottom line is this, if it can earn 2 cents a day it can provide 6% ROI, at 3 cents a day that's a whopping 60% ROI and that's the bottom of the barrel, look and you can hand register much better than that daily.<<

Okay , lets do the maths

Brand new domain costs say $10 to renew per annum

Income at 3 cents a day for 365 days $10.95

Your gross profit on $10 is therefore $0.95

To get $0.03 per day with a ctr 0f 5% and epc of $0.2 requires
1400 pageview per annum or 4 pageviews per day.

Now if you got the domain new, for just the reg fee of $10, then a return of 10% per annum is yours for as long as you keep the domain, plus perhaps one day, someone might com along an pay you loadsa money to take the domain.

Now, if you bought the domain for a fee, say 100 dollars, then your return would be a princely 1% per annum

Now, how many parked domains do you have that do better than 120 pageviews per month

Me, i don't have even 1

Okay, I am guessing there is something wrong with my maths , so lets have some alternative workings

8:50 pm on Feb 12, 2007 (gmt 0)

10+ Year Member



Math $6.84 for a .com, therefore 2 cents a day is profitable.

Park and forget, no development time.

I prefer 3 or more uniques per day, but many sectors can be profitable with much less, many are also not profitable with several times that.

The money is in figuring out what is what, and you will make mistakes, just make more successes than mistakes.

My average CTR 14.08%, RPM $30.63 this month for parked names.

9:47 pm on Feb 12, 2007 (gmt 0)

5+ Year Member



thing is, how many impressions per day do you get?

how much do you pay for already registered domains capable of 60 impressions a month

i am much tempted, but my experience with this isn't good so far

9:53 pm on Feb 12, 2007 (gmt 0)

10+ Year Member



Now, how many parked domains do you have that do better than 120 pageviews per month

Me, i don't have even 1

I have many domains with low pageviews, but generate much more than the $6.95 registration fee. If you look hard enough you can find them.

One example:
34 uniques for 2006
17 clicks
$32.24 income for the year.

10:27 pm on Feb 12, 2007 (gmt 0)

WebmasterWorld Administrator webwork is a WebmasterWorld Top Contributor of All Time 10+ Year Member



I consistently look for:
  • Domain name subject matter that is something that people routinely look for online = Direct navigation traffic.
  • Growing and competitive market space = Pool of bidders.
  • High value leads = higher PPC cost and payment for sharing traffic. Generally this means generic, highly commercial, industry keyword phrases. In other words, the domain "IS" the generic, non-trademarked phrase for what people are looking for. (See past threads about geotargeted domains, i.e., City+Service.com or State+Service.com )
  • Demographics: Big markets are better than smaller markets = More people looking.
  • Given 1-4 above I sometimes manage to register domains that find favor with click traffic consumers. Domains earning domainers $10-$20+ are often the same domains that generate 10-12 sales leads, leads that may generate $5,000-20,000.00+ in revenue for the end-user consumer of the traffic. So I receive offers, from time to time, that I might not if I didn't chose the above model.
  • Food for thought: I've chosen to target and share the idea of targeting localized domains. Why? Because I'm reasonably confident that a) Local search is just beginning to emerge; b) Local businesses, a huge advertising market, are just beginning to wake up to the need to geotarget or localize their traffic; and, therefore c) The PPC bids for localized services are likely to grow in the coming years, both in volume and in what it costs to "get the click".

You can't compete with domain tasters on their own playing field but you can use your life or work experience and insight to make a successful move.

[edited by: Webwork at 11:10 pm (utc) on Feb. 12, 2007]

10:30 pm on Feb 12, 2007 (gmt 0)

10+ Year Member



The more traffic the more comfortable I am.

Insurance and other industries can produce $25+ clicks, one click a year is great ROI, but you may invest in a bunch of duds if they have little to no traffic to gauge value.

If I buy a domain from someone else I don't buy based on impressions, I buy based on revenue and based on multiples of that revenue.

10:37 pm on Feb 12, 2007 (gmt 0)

5+ Year Member



So do you enjoy an operating profit from your domains or do you make the money from selling domains

Seeing as all the great generic .coms are gone, an I know from experience that .info , .biz .nets , .orgs aren't great for type ins

1:16 am on Feb 13, 2007 (gmt 0)

10+ Year Member



centime, I only go with .com's, others prefer .org's or cc tld's

I strongly suggest delving into past threads here, lots of info has been disclosed by top domainers.

2:00 pm on Feb 14, 2007 (gmt 0)

10+ Year Member



If you can assess the quality of the links the site has, you can get good traffic expired domains at reg fee. Most drop catchers use algorithms, which may not indicate the type of links the website has or whether the backlinks will disappear when the domain is re registered.
3:27 am on Feb 19, 2007 (gmt 0)

10+ Year Member



I let two names expire only to find someone else taking them, so I need to look into this further. can someone email me and let me know the best site to get free info on expiring domain names.

So if the general consenus is that you don't make much money with domain names, then why not buy the domain name and put up a one page site, article about the subject and then lots of goodle, amazon ads ect.

Take this webpage site and connect it to another site you are promoting, the site you are promotiing is of course listed with another host and then that 1 page website is getting lots of hits because of the other sites.

All thoughts are welcomed.

10:51 pm on Feb 24, 2007 (gmt 0)

5+ Year Member



Domain buyers sometimes pay more than 10 times a domain's annual revenue, because they know both traffic and revenue will constantly go up in the near future. So 10x today might only be 5x in one or two years. Especially now that the first domain leasing services are coming up. Moreover, domain sale prices go up too, so the risk of buying good generics is not that huge as you can resell them, thus making a profit from both domain parking and the sale of the domain.

However, the value of generic domains is way beyond what they're earning via domain parking. Generic domains do have name value and commercial value. Six and seven figure prices are nothing unusual for quality domains currently on the market.

By the way, buying domains for less than 5x annual revenue is almost impossible today, unless it is a TM domain. Most traffic domain owners are not interested in selling off their portfolio at all.

If you want to get a non-TM portfolio making $4,000 per month, you should be prepared to pay at least $350,000. But it's likely you'll have to pay $500,000 or more.

 

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