This morning on Twitter, domain investor Andy Booth tweeted about a successful domain name flip he recently made. Andy reportedly sold Abby.com for $75,000. He bought the domain name in June of this year for $55,000. That would be a little more than a 36% ROI in less than 2 months:
SOLD https://t.co/pRxG5W4RN9 to an end-user @ 75k. Purchased: June 2020 @ 55k.
High reseller price I think, but the buyer’s timing was right for me, so he got a reasonable deal IMO.
— Andy Booth (@Chain) July 30, 2020
The responses to this profitable quick flip are interesting. Quite a few people acknowledged the nice ROI in such a short period of time, and a couple of others have mentioned or implied that the price was relatively low for a name of this quality.
In this case, it is possible that both sides of the discussion are on point. Earning $20,000 from a $55,000 investment in less than two months is great (unless you are buying Kodak stock). I would also have not been surprised to see a domain name like Abby.com sell for six figures.
I built my business in a similar fashion to Andy (although I would argue that he has bought and sold some better names than me). I often face the dilemma of selling a domain name for less than an ideal price but making a quick ROI to fund the next investment, pay living expenses, pay taxes…etc. There’s also the possibility that I overvalued the domain name in my head, and turning down a good offer to get a great offer that may never materialize can be demoralizing.
The buyer of Abby.com is the virtual receptionist service company that uses AbbyConnect.com, so this acquisition is a great upgrade. I am sure Andy tried to get a higher sale price for the domain name, but he agreed to sell it for $75,000 for a quick $20k profit. The company should consider itself lucky it got a great deal, and Andy played a major role in connecting a startup with the perfect domain name.
Now, Andy has $75k in cash to make another domain name investment.