Have you ever thought about what your domaining strategy is? Buy in when the price is low and sell as the price goes up? It might be the most basic one. Of course the strategy must fit one’s own stand point and everyone could follow his own way of domaining. I would like to talk about 3 effective domaining strategy models that might be a hint for you to develop your own strategy.
Buy in bulks like a whale and sell smartly with precise marketing. This model is more suitable for the investors with deep pockets. Here we have the tips for buying and selling in the Whale Model Strategy.
Usually the unit price of the goods will be cheaper if you buy in big bulks, but the quality of the domain names might varies greatly in a single bulk. Make a cautious check before you dig into your pocket. First, go through the domain list and sort out the domain names into different levels. Make a calculation on how many domains there are in the different levels and what the average prices are for the different levels. Pay special attentions on the premium ones. Then you can make an evaluation of the pack based on the data. Remember the rule that quality precedes the quantity. Even the two packs are equal in the price, the one with bigger percentage of premium domain name will be better.
Sell the premium domain names with precise marketing. The price will be good if you find the good meanings of the domain names, or contact the potential end users of the domain names. The market-skimming pricing strategy could be perfectly employed in the selling. You shall lock in the price on the most premium domain names. For example, there is a pack of 100 domain names, of which 40 are premium domain names. With precise marketing, sell the 40 domain names for the price of the whole pack. The sale of the left 60 domain names will be pure profit. You can also divide the rest domain names into small packs and add some good ones and some ordinary ones in a single pack, so the ordinary ones will have a chance to be sold out.
Though the Whale Strategy could help you to get profit efficiently, it sets a high threshold to the financial capacity of the buyers.
The Fishman model meanings sell the domain name with the patience of fishing. I have seem a domainer, whose 4-letter chips domain names always sell at a price ten times higher than the market price. How does he make it? The only thing he does is to set a For Sale page of the domain names and leave his contact information and wait for the buyer.
One transaction made with the end user could bring you as much as ten transactions made with other investors sometimes. Thus the freshman set prices high enough to scare away the other players and saved his energy for the ones who need the domain names indeed. This is not the only reason for his success. First he had chosen a good target —- the 4-letter chips domain names. Although there are some fluctuations of the market price, the 4-letter chips domain names are welcomed by many Chinese end users. He got the point in the choice of the target. Besides, the prices of the domain name are between $15k to $25K, which are acceptable for the end users. What’s more, this Fishman is an early investor and bought the domain names when they were only tens of dollars.
With an original capital investment and acute insight of the market as well as patience, now his might be the happiest Fishman in the world, selling several domain names per month and spending the rest time with the sea breeze and waves.
Pan for Gold
Buy in low and sell out high, circulate the funds and re-investment. I believe this is the most common way of domaining. What are the differences between domaining and other business? A professional domainer will spend most of his time cold calling and cold emailing. They need to screen the most valuable message from tons of information, dig out the background of the domain name and persuade others to make the transaction. With so much energy spent in a domain name, the domainers know to spend time on the most valuable domains. Step by step, persistent domainers will achieve their goal after several years of effort.
In this model, the key is to ensure the liquidity of the funds. After an acquirement, you need to sell the domain name to liquidate the funds in order to make further investment. In this occasion, the domain name will be traded frequently. I suggest using the target-returning pricing strategy under this model. You can set a target of returning for a certain period, and price the domain names based on the target.
The Key in the Strategies
As I have said before, everyone could have his own way to do domaining. No matter for hobbies or for speculation, there are some common points that you must pay attention to in the investment.
A. Financial Capacity: this is the key to determine the strategy of your investment. Choose your model according to your capacity and never invest blindly.
B. The Profit Point: The profit is the reason for investment. How to sell your domain name for higher profit? This is the question for all the domainers. No matter how the market fluctuates and the book value of your portfolio changes, find the right buyer and sell your domain at a good price.
C. Risk Control: Never put your eggs in one basket. And do not forget to pay attention to the liquidity of your asset. Never let your financial circulation break.