I want to share something I’ve done in the last several months that has helped me close a couple of very profitable deals. These deals weren’t high value (around $1,000/each), but the profit margin was great.
First, a bit of background information. I searched NameJet pre-release names with bids in the closing minutes. I found one that I hadn’t seen before and backordered it. When it came to the auction, I was the winner at under $200. Within 2 months, I sold the name for mid-$x,xxx to a company that is a leader in this small industry.
This is pretty much an under the radar industry that has low search volume for its key terms, but when it sells its services, they are for thousands of dollars each. There are several companies actively marketing its services in this space.
Shortly after completing this sale, I spent a fair amount of time seeking out relevant domain names in this small industry. Some were hand registered and others auction wins. I then re-approached the company and worked out a smaller deal ($1k/name). I paid less than the first acquisition for these names, so it was profitable and a quick turnaround.
There are three pieces of advice here:
- Seek out smaller industries and find the best cheap domain names that make sense. Approach the market leaders and offer the names for “fair prices.”
- Once you complete a sale, find other names that are priced well. Set a NameJet and/or SnapNames email alert for specific keywords so you know when a good one is coming up.
- Re-approach buyers and offer them good or better deals on subsequent domain names. Don’t price them too cheaply or you’ll lower your profit margin on subsequent sales.
Do you have any similar tips you can offer?