After watching some of the GoDaddy Domain DREAM Academy episodes, I decided to do this challenge on my own as a person with no past experience in the domain industry.
I admit it has been very enjoyable so far as domaining seems to really improve your neuroplasticity by making you analyse domain names with completely different application/industry type and etc.
I applied the following rules to my challenge:
Strict 500$ budget (without being able to reinvest the profits)
One hour per day maximum allowance to see how far a normal person could go without sacrificing much of their day.
I was actively analysing and acquiring for roughly 45 days, after which period I completely stopped putting effort (had final exams to prepare for - got the highest grade possible on both of them - 6.00 which placed me among the top 200 students in the country - out of over 53000 😊).
Regarding Acquisition and Sourcing
In total I spent 463$ across 32 names.
All of the names were either hand regged, drop regged (manually) or back ordered, hence my AAP is 14.5$. I did participate in some auctions but with a budget like this it is very difficult to get your hands on anything. Another concern of mine was overpaying, since auctions often rely on emotions and impulsive decisions.
Performance & Sales Stats
The average age of each domain name in my portfolio is exactly 150.5 days (~5 months).
I have realised 4 sales so far, amounting to a total of 2129$ in gross revenue and 1884$ in net revenue.
The distribution platforms that I use are just Afternic and Spaceship, which are connected to the registrars that have the biggest market share and web traffic.
Except for relying on searches and inbound leads, I did very minor outbounding (sub 50 emails sent and I believe that brought me 2 of the sales).
So far my STR is 12.5% which would have been lower if I had priced them all in the low 4 figure range, but my main priority was liquidity (annualised would be 30% which does seem quite unrealistic 🤣).
The remaining 28 unsold domain names still have an average of 7 months left before renewal. Assuming a wholesale value proportional to the acquisition price based on time remaining, the remaining portfolio holds an estimated $236.83 in residual face value.
Regarding the customer base and TLD stats
I assume that all of the domains were purchased by end users, as 3 of them have been utilised and have a functional website hosted on them.
The average tlds of a sold domain name (including .com) according to @dotdb are 4 with the following breakdown for each domain name respectively:
2 tlds
2 tlds
3 tlds
8 tlds
Interestingly enough, I used to double check the names with AI and the two of the names that actually sold were missed in the analysis (or were classified as non-worthy). I had simply bought them because I liked the names and wanted to develop them myself.
I guess sometimes self conviction helps
That’s from me for now, thank you for reading!
#Domains #DomainInvesting #Afternic #Spaceship #DomainNames #DomainNameInvesting
