A couple of years ago, the .XYZ registry had a special promotion where unregistered .XYZ domain names could be registered for $.01 for the first year. I remember thinking (and writing) about registering a huge swath of them with the hopes of selling just a couple to break even and make a profit. I did not do this, but Darryl Lopes did and shared his story on NamePros today.
Unfortunately for Darryl, a year went by and he did not sell a single domain name, despite having a $300 buy it now asking price for each name. He said he received a couple of inquiries, but neither produced a sale for him:
“I mean I did pay around $200 for all 20,000 domain names so I really just wanted to sell one and make a profit. That never happened, almost a year went by and I had to make sure all the .xyz were on auto renew off as the renewal price for around $12.88 USD each, I knew this going into this and a few clicks and sorting out bulk domain edits I was going to let them all lapse.”
On one hand, Daryl lost a couple hundred dollars and a couple of days of effort. On the other hand, Darryl seems to have avoided any legal consequences such as a UDRP or URS that could have lived on and impacted his business for a long time. He was also able to say he gave this a try, and I applaud his effort and his sharing. I am sure there were quite a few people who did what Darryl did, and I don’t recall seeing anyone else share their results.
There are a couple of takeaways from this. It’s not just as easy as registering thousands of domain names in bulk and waiting for the offers to come. With the popularity of .XYZ domain names, especially after Alphabet’s ABC.XYZ launch, I thought registering domain names en masse might be a good idea. Turns out, it wasn’t necessarily a profitable plan. Of course, it could have been the domain names Darryl chose to register, but that is tough to say because most of the better names were long registered or controlled by the registry when the $.01 offer was announced.
Kudos to Darryl for taking this risk, and thank you for sharing the results. I have been curious about the successes or failures of plans like these, and I appreciate his willingness to share his data.