Listen To Your Gut Instinct When Chasing Expired Domain Names

Often times people will chase expiring (Pending Delete) domain names on a whim. I think the lists at namejet & the like have conditioned fellow drop catchers to think that some domains may be valuable or attract a certain level of attention. I’m not one to favor drop catching a domain just because it attracts attention. Instead I try to seek out expiring domains that make sense to me and I feel have high re-sell value to an end user.

When it boils down to it, you should ask yourself if the domain name is really worth the effort. What will the domain name look like in a few years if you need to keep renewing the domain year after year? What will your spending look like if you keep doing this on a daily basis and gather hundreds of domains over the course of a month, few months or year? What if you’re unable to flip the domains you’ve gathered up and are starting to look at losses due to your inability to flip said catches?

I recommend you follow your gut instinct. When in doubt, drop it out. The drop catching and domain flipping business is full of surprises. What you may feel is valuable to someone may be worthless to the general public & end users. What matters most is your turn around rate. Like swimming, you need to plan to stay above the water & profit. It’s not about quantity, but instead quality. What makes sense to you may not make sense to someone else – even if they’re your target to buy the domain name.

I often times stop chasing certain domain names that I feel are a bad investment. Usually I scroll through the lists at pool & namejet simply to ask myself… Why would anyone in their right mind chase this domain name? Of course I may be wrong, but it has been a healthy balance to keep afloat and remain profitable. You won’t win every drop catch or domain you seek, but you need to understand that it’s ok. It’s a competitive market out there to chase the good drops & if you catch a small amount of domains from your chase list you’re doing just fine.

The gut instinct factor has helped me a lot. Along side with not caring much. If I catch X domain great, if not, I’ll get over it. There was a certain level of competition I had to deal with before I accepted it. Usually I knew what my gut told me, but I still chased the wrong domains. Sometimes I caught domains I never imagined would sell, but they did as well for more than I thought they were worth. It’s going to eventually break down to a math equation that is volatile depending on your gut instinct.

Your decisions will literally make your bank or break your bank. It’s not about competing with the domains that others want, but instead competing for the domains you can catch & flip for profit. Sometimes I catch medium grade domain names & I am not certain they will sell. However, thanks to my gut instinct – I receive a good offer for such domains and the sale completes. I guess this is my break down of how I manage my gut instinct and what other domainers perceive as making a domain worth my while:

1.) Can I flip the domain reasonably soon (usually in less than 9 months)?
2.) What is the price of the domain? Is it worth catching at regfee via an API or backorder price of $59+
3.) Is the PendingDelete domain name worth going into auction / competing over – if it gained attention?
4.) How much can I flip this domain for? Realistically who will be the end user. Look before you jump.
5.) Am I prepared to renew the domain name for up to 10 years? Is it that good?
6.) Could the domain have received attention from hype? Where do I really see it going?
7.) Do my research. Look up businesses and trademarks that may benefit from the drop catch.
8.) Do research on the expiring domain. Look up it’s history & shorten my chase list.
9.) Does the domain sound good or make sense to me. Block out your niche targets. Ask yourself again.
10.) Where do I see this domain going? Will it be dropped again in a year? Will it be worth keeping?

Overall trust your gut feeling. When I first started in the business, I used to chase anything dropping. This included domains with hyphens, numbers and less desired TLD’s eg .net, .us, .mobi, .co .me etc… My gut feeling has conditioned me to only chase .com domains because plain and simple – I don’t have the time or patience to chase less desirable TLD’s and wait around for someone to approach me.

Lastly, make a solid game plan. If you own a domain, it made sense to you for a reason. Believe in yourself when you market the domain for sale. Don’t look back. What is done is done & just better yourself while listening to your gut instinct. If you made mistakes, learn to stop making the same mistakes & correct it. Get into the buyer’s mindset. Why would someone value X domain? Why would they want or need it? How much would you pay if you were in the buyer’s shoes? What is the good & the bad about the domain name? Is it blacklisted? Is it worth hanging on to? More than likely if you don’t plan on hanging on to a domain for more than a year – it’s not going to be a good investment.

I hope this article help enlighten domainers into my perspective and rules I set upon myself when drop catching expired domain names. There’s no set rules on how to make money domaining, but these principles have really helped me become profitable in what I do everyday. It’s not about how many domains you have – but instead how many sales you complete that make the drop catch business so lucrative.

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2 Comments »

 
  • Arseny says:

    Thanks for sharing your experience with us! Don’t you think that guts instinct get developed during the game? I also think that one of the most important things to invest within the first steps in domaining is a “sales tool”. Basically set of actions & gameplan after you catch a domain – how to approach a potential end user and after all close the deal. Because many newbies (including me actually) think if you have a domain – a buyer will come. Which is not actually always true ;)

  • admin says:

    Hi Arseny,

    Thanks for the comment. I totally agree that our instincts get developed as we learn. I don’t see the “Sales Tool” available yet :). I hear you on the waiting for a buyer to come. Even though I have had that happen, maybe this technology will make it more a reality through awareness so it happens more.

    Look out for a future post. I have been working on a domain warehousing article.. I hope to publish it soon.

    Dan

 

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