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Multiples on Domain Investments: 10 Recent Afternic Sales

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I would say the two most commonly asked questions I receive about domain name investments are related to the amount of time I hold my domain names and the multiples I get on them.

I think there is a common school of thought that a 10x multiple is what people seek, and I don’t entirely agree. On low cost inventory acquisitions, I might shoot for 20-100x multiples, and on higher valued domain names, I might seek 10x more or less, but I might take 2x depending on how long I’ve held the domain name, how much interest there has been in the domain name, how many prospective buyers I see, and my desire to add cash to the coffers.

I have come across multiple multiple conversations lately, and I thought I would illustrate multiples by sharing my last 10 recent sales made on Afternic along with the price I paid to acquire the domain name.

Dan.com is Done

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The time finally came. Dan.com has been completely shuttered by GoDaddy.

The innovative platform was acquired by GoDaddy in 2022. It was operated independently for a short period of time, and the platform was absorbed by GoDaddy and Afternic. Earlier this year, it was announced that Dan.com would close down over the Summer, and that time has come.

If you visit Dan.com now, you will be forwarded to Afternic with a Dan.com tracking url.

Testing a Small Data Set is Similar to Guessing

My educational background is in the field of direct marketing. Following my undergraduate degree, I went to NYU and earned a Master’s degree in Direct and Interactive Marketing. I then worked at a direct marketing agency called Wunderman, followed by a corporate direct marketing role at AIG.

One of the hallmarks of direct marketing is testing. I recall one of my professors telling the class about the “test everything” mantra in this field. Testing is the most important thing, and once you have a winning campaign or strategy, you keep testing to see if you can iterate and improve your results. All of this is to say that I am a big believer in testing.

I read a blog post about testing written by GoDaddy’s Adam Ramsdell. While I agree with the testing sentiment, I think it would be very difficult for most domain investors – myself included – to accurately test in a way that will create actionable results.

How I Manage Dual Listings on Atom and Afternic

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I am a customer of Atom.com and Afternic. My feeling is that Atom does a good job of helping people discover branding opportunities with listed domain names, and Afternic does a good job of helping domain name buyers purchase the domain names they are looking to buy.

At the moment, I have just shy of 250 domain names listed via Atom and I have more than 2,000 listed for sale on Afternic. All of my Atom-listed domain names are also listed for sale on Afternic, but there are rules I am required to follow in order to do so. Since I always list my domain names on Atom with “coins,” the primary rule that I am required to follow is a 10% markup on the BIN price at Afternic.

Namecheap Prioritizing Sedo Listings Over Afternic

Michael Sumner from NameBio mentioned an unexpected uptick in sales closed via Sedo over the past couple of weeks, and he asked about whether a major registrar began prioritizing Sedo listings:

In response to the question, Namecheap CEO Richard Kirkendall confirmed that happened. Namecheap is now prioritizing Sedo listings when a domain name is listed on Sedo and Afternic:

Afternic Should Better Explain Broker Communication Process

My Afternic Lead Center is full of Stalled, Qualifying, Confused, and Unknown leads. As a domain investor, this is pretty confusing and slightly frustrating. I don’t blame Afternic brokers for this because I have become familiar with how their platform works, but I do think Afternic and GoDaddy should better educate its sellers on the brokerage process.

When a prospective buyer submits an offer or inquiry, I am pretty certain they quickly receive an automated email with information about the domain name and a broker contact. The Afternic broker will follow up various times via email and a phone call if they have the correct phone number. Afternic brokers earn a living on commissions, so they have a vested interest in selling domain names.

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