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Personal Story – Flipping Expired Domains Into Big Profits

This is about my personal experience with catching expired domains & flipping them for good profits. You may ask, what are good profits.. Well on average when I pickup a domain at regfee of $8 USD +- and flip it to cover a portfolio of 100 domain names, I consider that a good flip. Then the domino effect takes place & additional sales from that portfolio end up being pure profits. The main thing to keep in mind with this tutorial is that a good eye for finding drops from the daily drop lists & luck has a lot to do with maximizing profits.

The most important barrier I had to overcome was convincing myself that I wouldn’t be able to catch every domain I chased. After I understood this, things became easier & the profits from sales rolled in consistently. I like to believe I have a good eye for determining which domains I could chase, catch & later flip for profit. I notice that the most profitable domains seem to be in the product & service niche. product & service related domains are ones that descriptively describe a service or product that has high search volume.

For the purpose of this tutorial, I will go into detail on how I took a $500 investment & flipped it into $10,000+ over the course of a year. My initial $500 investment started over at Dynadot.com when they required a $500 prepayment to access their API for drop catching expired domain names. So I set forward & I prepaid my dynadot account & I started scouring the daily expired domain lists. Like most domainers who start off – I was registering junk domains I felt were worth money, but really weren’t. To my surprise one day I received an offer via email from an end user who wanted to purchase a domain name I owned. He asked me for my asking price & I quickly replied $800. After a low ball counter offer & email exchange, we agreed upon $500.

The $500 payment came in & I pushed the domain name to the end user’s dynadot account. He had to create a free account at Dynadot because he didn’t have one & didn’t know how a domain push worked. After requesting his dynadot forum id & email, the domain was securely transferred to his account. At this point, I had regged about ten domains & I had the luxury of registering up to 45 more free of charge after this sale.

I quickly got to work & became more selective about the domains I picked up. I think at this point I finally understood that quality was better than quantity while still not stepping over the good drops that had backorders at the major drop catchers as to not ruin my domain drop catching attempts with lesser quality domains.

Soon I realized I was starting to warehouse a small portfolio of domains that could be sold. I moved on to place the domains from my portfolio for sale at SEDO by parking domain & the domain forums were an outlet for my junk. I quickly learned that finding end users paid off a lot better than selling my domains at the major forums.

I decided to improve my communication skills with end users approaching me for my domain names & I sold a domain for $900 via my whois contact info on the domain & at that point, I had around 30 domain credits via dynadot’s API & I used them up more rapidly chasing a wider variety. I got to the point where I ran out of prepaid funds & had a good amount of domains – but no sales. It must have been around that time (Spring of 2010) – where I sensed a good wave of drops headed my way soon. I quickly decided to reinvest my profits into additional dynadot api accounts. I took my $1,400, invested an additional $100 and I put the money towards 3 new dynadot accounts.

I quickly got to work & split up the four accounts based on domain quality. As I started to catch domains with one account, I would push domains based on quality. In no time, I had built a mini system based on domains I felt were a.) garbage, b.) worth $20 – $60, c.) Worth $60 – $500 & d.) $500+ account. I was averaging 1-7 actual catches a day & chasing close to twenty domains a day. I basically rinsed & reused the idea & like wildfire people who could use the domains I caught would contact me for a sale.

The sales eventually churned good profits to the tune of tripling my initial investment & providing a stable of domain names for sale. A handful of sales kept the ball rolling which yielded nice profits. I’m not one to hold on to the same domains so most have expired now that I didn’t sell. I haven’t had a lot of luck holding on to drop catches for more than a year with my system.

I kinda lost interest & dwindled down from a a huge portfolio to a more sizable domain portfolio. I will keep you posted once I get back into drop catching. I haven’t been active lately, but really thinking about it & documenting via screenshots & videos – thanks to the support my blog gets.

Rock on domainers! There’s a lot of money to be made out there. You just need to pave your own path to success.

Comparing Drop Catching Software & Registrar API’s

This article is to cover the drop catching software I sell & questions customers often ask. While each registrar is different and has a different API, I will cover how the popular ones work & each registrar’s API strong / weak points.  To go into detail about what drop catching software is & registrar API’s, I’d like to explain that I write software which you enter expiring domains into. The software is meant to be run during the drop window – which for .com & .net domains occurs between 1pm & 2:15pm CST. So you would take your daily list of expiring domains & stuff them into a text file. You need to enter one domain per line & save the text file with any name you’d like. You would then open up the drop catching software or multiple instances of the software depending if you have multiple accounts at a registrar or choose to use multiple registrars to catch the drops.

Customers who have purchased my drop catching software often ask these questions & I’d like to answer  the top asked questions here:

Q.) Does your software work on a Mac  / Apple computer?

A.) The software was written to work on a windows based computer or a server. The software will work on macs, but it requires that parallels or similar software be installed. We don’t offer support for IOS devices at the time, but we’d like to add an app to the AppStore soon.

Q.) How many tries per domain do you get via a registrar API?

A.) Depending on the Registrar API, you can get up to 100 domain registration attempts per second.  Each registrar is different & we’ll outline them below.

Q.) Is the software hard to understand & use?

A.) The software is very easy to use. You simply provide a droplist into the software, enter your account info or API key & hit start. Some registrars require setting nameserver & years to register each domain, but most don’t require this.

The main question I receive is which software / registrar works the best. The question stems from which registrar will allow me to pack in the most amount of attempts in the least amount of time most efficiently. To answer this question, I have developed this cheat sheet:

Drop Catching API Comparison Chart
Registrar Pause Limit Domains To Register Success Rate
Moniker API 1 Second 100 Maximum Best
Dynadot API 1 Second 1 Maximum Medium
Dynadot Non-API 4 Seconds 100 Maximum Better
Enom API 1 Second 1 Maximum Low Success
Fabulous API 1 Second 1 Maximum Better

Overall, Moniker seems to be the best choice, although some customers prefer registrars like RRPProxy for catching cctld domains. It really depends on what you wish to catch and what tool can be fitted best for you.

Notice that there is a Dynadot API & non API tool.  The non API tool uses the manual checkout pages at dynadot to secure the order & you can actually use both the API & non API tool at dynadot with the same account side by side.

ENOM’s API disabled during the .com & .net drop catching window for catching domains via namejet for their own drop catching & backorder customers.

Let me know if you have any questions about the software & I will get back to you as soon as possible. I would recommend using multiple software titles for the most effective drop catching success.

Feedback Request For New Email Drop List Service

Hello readers, I am looking to start up a new expiring domains list service & your feedback as to what you’d like to see the service provide. I think I’m on the right track with my new tool, but your feedback will be necessary to fully refine the end product. So far, I am able to compile lists of expiring domains based on stats & criteria that I specify. I would like for the service to provide an easy way for a user to login, select their criteria & instantly receive an email with a domain list of expiring domains that matches what they are looking for.

In testing the system, I decided to test & see what the emaild lists may look like. I decided to test with this criteria for tomorrow’s drops:

Drop Date: ‘06-25-2012

Other Extensions Taken = Greater Than ‘2

Domain Extension = ‘.com‘ only

Hyphens = ‘0‘ – no hyphens

Search CPC “Exact Term” = ‘Greater than ‘$1.00 USD

Has Number(s) = ‘0

The list created which would be instantly mailed to the user would be:

_________________________________________________________

AMERICANLOCKKEY.COM

ASSISTANTVIRTUAL.COM

BLACKCHANDELIERLIGHTING.COM

CARINSURANCECALCULATORS.COM

DTSYS.COM

FIRESAFETYASSESSMENT.COM

GNATNET.COM

INSURANCEGA.COM

PROPERTYGLOBAL.COM

TONERSAMSUNG.COM

VALUEOFGOLDCOINS.COM

WEBDATASERVICE.COM

___________________________________

I have been testing different variations of stats to lookup & email and based on my criteria, the engine seems to be doing a good job. I am looking to tweak my criteria so the results come up in a wider variety of results or mixed stats criteria to compile a single list of unique domains for me to drop catch. I really think this would be a great service that domainers can use on a monthly based price. Your feedback is helpful as to which stats you’d like to see appear in an email.

Here is the full list of stats that are available for email delivery:

__________

Expiring Domains Based On Keyword(s)

Language

Length

Search Engine Results

Search ADS That Appear For Results

Search Volume

Search / Term / ADS – CPC

Pagerank

Alexa

Altavista

Wayback Records & Age

Google & Yahoo Results Count

Domain Age

Adult & Trademark Risk

Has Numbers or Hyphens

_________________________

Hope the readers of this blog can benefit from this new system I am building & can help refine the results to make their drop catching a more successful experience. I am thinking to price a service like this for only $16 per month & your tailored list will appear in your inbox on a daily basis based on your specs. Your input is valuable to make this a reality for the domaining community.

Effective For Sale Landers & Ways I Have Sold Domains

I wanted to share with readers of my blog ways that I have sold domain names & the success I had. I have tried several ways to sell domains & I will outline what I tried & the success I had. So far, the results seem to vary on the domain quality. If a domain I own is good & there’s a buyer, the buyer will find a way to connect with you & show interest to purchase your domain name.

GoDaddy – For a while, I was backordering domain names in volume at GoDaddy.com. Every once in a while, I would receive an email from domainbuy@godaddy.com with dialog regarding an interested buyer for one of the domains. I really liked how GoDaddy handles the process with a human interacting with the buyer & me the seller via emails. I was able to email back, ask for the buyer’s offer & counter offer or accept the offer via email. I also like how they kept me posted throughout the entire process via emails. From start to finish, godaddy was there & if I had any questions or concerns, they addressed each item in an effective manner. I’m not sure how the buyers contacted GoDaddy to initiate the sale, but payment was always made with a quick turnaround. The payment was made each time to my PayPal or my GoDaddy Good As Gold Account. Overall, the GoDaddy sales were for domains I recently caught & were hosted with their parking pages.

Whois – I often get sales that funnel in via the whois contact info on my domain names. I will get an email from someone regarding a domain name I own & they are interested if I am looking to sell the domain. This method of selling a domain seems to give me an opportunity to size up the buyer. I will do extensive research on the potential buyer to gauge their budget. Sometimes, these buyers are not very legit or testing the waters. I have had a lot of sales via whois, but I have also had a lot of buyers back out from the purchase. I always try to keep my whois info up to date with the proper email, phone number & so on.

SEDO – recently I have been hitting good sales with SEDO.com lately. I think there’s much to learn about the whole sedo process where buyers are able to visit the parked page & hit the buy now page. Usually I would assume that visiting a parked page would turn off a buyer, however sedo’s parked pages seem to attract buyers to click the “This domain may be for sale” link & complete the sale. I always look forward to an email from sedo’s transfer team & that payment is in escrow. The process is really painless & after using sedo’s buy it now pricing, the sales complete rather fast because of the set prices I have for each domain. I am slowly migrating more & more domains to their platform due to the simplicity in the sale & how payment is made with a quick turnaround.

Parking Lander Page – For a while, I was building up servers on a whois catchall system. Basically if I set the DNS servers on all my domains, they would display a full website with a buy it now & make an offer page. I really liked this system, but I found that after a while Google would deindex the pages because of the same content across multiple domains. However I always enjoyed receiving a paypal email that a buy it now buyer purchased a domain from the domain & processed payment. I would also get a slew of emails from interested buyers with inquiries or offers. I may setup this system in the future, but using a system like SEDO’s seems to have superseded this process & seems much more legitimate to a buyer.

Developed Website – This is dating a while back, but I used to develop my domains into websites that were based on wordpress or static / dynamic html pages.  On the developed sites, I would put up content along the lines that the domain was for sale & add content based around the domain’s keywords. It’s been years since I used this process, perhaps because of the work involved & the low success rate compared to the work done that yielded any sales.

Emails & Mailing Lists – This process involves scouting & emailing end users to purchase your domain names. This process used to work a couple years ago for me, but spammers have watered down this process from the success rate I used to see. A couple years back, emailing a potential end user would yield an instant sale. Now it seems like all end users are plain sick & tired of the spam mails & label the solicitations as a scam. For those of you that still use this practice, I find that setting up a buy now page or putting a buy now / make offer option on the homepage to link directly to will get you better results to secure sales.

Happy domaining & I hope my hands on advice can help you in selling some of your domains!

Drop Catching Software Special – Only $79 USD

Hello,

I am running a special on the drop catching software found at DropKing. The special will go on for a month and end on Monday july 16th 2012.  The special is your pick of these drop catching software titles:

Dynadot API Drop Catcher

Moniker API Drop Catcher

Fabulous API Drop Catcher

The price is only $79 USD. You can complete payment using the link below









Dynadot Drop Catcher Software

There is a full seven day return policy on the software if you are not satisfied or feel the software didn’t meet your drop catching expectations.

The price of $79 USD is per each software title. I would recommend that you try Moniker & Fab’s API’s while Dynadot still works, but may not perform at all times due to oversubscribed API user issues they are addressing & correcting.

The software will integrate with Dynadot, Moniker & Fab’s API. The tries per domain are at about one per second across all three API’s.  The success rate will really depend on the domains you target, if you want to automate your work & your drop catching expectations. When you work with bulk drop catching, your odds will improve with the right software at your fingertips.

Monitoring Pending Delete Domains For Who Got What

I am looking to scale and expand my personal drop catching strategy. For a while, I was laying low & working on selling my current inventory instead of adding to it. I like to warehouse domains & have stock available. Sometimes a domain buyer will specialize in a niche & I happen to upsell an additional domain or more for profit. As I am prepping to setup shop again & catch expired domains, I decided to monitor what’s going on with my picks & see who catches from my wishlist.

I had a long list of drops I thought I may chase & try to catch. I lowered my list to a small handful of drops I thought might get backorders or spark interest among other drop catchers. Here is my list that I thought were decent & the outcome of steady strides I am noticing. I like to trend my drop catching on my gut feeling so my drop lists may not match your criteria and or seem off the wall. However, I tend to stick with what works for me & produces consistent sales for me.

Yesterday I sought out finding drops that I liked & thought I’d monitor to see what kind of tools I’d build to try & get an upper advantage over my competition.

I pursued to draw interest to these domains in particular:

Reliables.com
MuscleButter.com
TrampolineSupply.com
Classic-Tees.com
ReviewUS.com
TechPeople.com
ShoeFair.com

Overall this short list came from around 50 domains I hand picked based on specs & stats like CPC, extensions taken, if they sounded right & if they had other stats.

So after the drop, I decided to invesitgate the status of the domains and see which domains were still available & which gained drop catching attention. So far, as of writing the domains I suspected as becoming dropped & available was somewhat correct. I noticed that the domains:

MuscleButter.com & Classic-Tees.com were not picked up on the drop & remain available. However, the rest of the list was picked up & here’s the results of what I found:

Reliables.com – Drop Catcher: DOMAIN BAND, INC. (SnapNames Catch)
TrampolineSupply.com – Drop Catcher: DOMAINNETWORK.CA INC. – BELLNAMES.COM (BackorderZone.com Catch?)
ReviewUS.com – DropCatcher: DOMAINUTOPIA.CA INC. (BackorderZone.com Catch)
TechPeople.com- DropCatcher: DOMAINNETWORK.CA INC. (BackorderZone.com Catch)
ShoeFair.com – DropCatcher: ENOM417 INCORPORATED (NameJet.com Catch)

It was a bit of a relief to see that Andrew Reberry from HugeDomains.com seems to not have appeared in my drop catching study. He continues to hoover vacuum cleaner domains
into his warehouse pool of inventory. Perhaps others are finding methods to drop catch domains more efficiently and at an affordable cost. Or perhaps the drop catchers are holding a better chance at fighting against the regulars.

I expect to expand my reports further and include longer lists of domains I target & catch. I still feel that the treasure in the drop lists is in the drop catcher & future domain buyer’s eye. With due diligence, you will find that there are a lot of domains that drop & can be profitable as low as registration fee. The list above may have been a bit short listed & I know that backorder zone has been the new Reberry kid around the block. Time will tell if it pans out & to what degree they can sustain a healthy market, reliable customer base & integrity to be a piece of the drop catching pie. I can see the drop catching software continues to work, but the level of domains registered seems to fluctuate between good & bad at a reliable rate.

How To Flip Your Domain Or Portfolio For Maximum Profits

This article will go over my methods to flip domains into profits.  This is how I do it & what seems to work the best for me.  The best advice I can give someone is to make sure the domain you are selling is a domain that you believe in & holds value. Everyone has a different opinion as to the quality of a domain, if it holds value & if it makes sense. The better a domain is & can fit into being put to use – the better the chances are it’ll sell. Let’s go over the points I cover & how I have sold many domains for excellent profits. On average, you can expect to receive between $200 USD – $900 USD per domain name. Sometimes the sky is the limit & other times you will get nickel & dimed if your target buyer doesn’t see the value in the website url.

I like to break up the steps I take into these simple tasks:

1.) Find people who can use your domain name. Start off with a Google search. Eg, if your domain name is: OceanPottery.com – then do a simple google search for: Ocean Pottery. Quotes are optional, but Google offers a ton of searches (Global, Local, 100 Results, Exact Term, so on..) So it’s up to you to get creative & pay attention to results you feel could fit. For example, Ocean Pottery discovered some results that I would like to contact:

oceanartpottery.com

adropoftheocean.co.uk

oceanfirepottery.com

piraterosepottery.com

And a lot more results. After I collect a list of prospects, I take the time to give a weight to each prospect. The weight comes from visiting the buyer’s site & learning a little about their business. I ask myself, why would this business benefit from my website url? Is it easier to remember? Is it something I would consider buying if I was in the buyer’s shoes?

I then proceed to short down my contact list further. I like to visit the buyer’s website & find a contact form, phone number or email. Anything I can use to get a hold of the buyer & offer a pitch to sell my domain. If i’m working during the day, I will usually pick up the phone & call the business. Feel them out if the person I am talking to is a decision maker. If not, can he put me in touch with the decision maker of the business? If I can’t get a hold of someone or I leave a voicemail, I like to follow up with an email or send an email to buyers who don’t have contact info & only an email.

I am pretty good at talking to people on the phone, but a pitch I find works well is just to be straight up to whoever you talk to. You can learn alot about the buyer & determine if he/she may buy the domain based on a phone call. You can usually seal a sale on the first phone call if you play your cards right because usually the business will actually need your domain & they will show interest to buy.

Something I would recommend against is using a service like LeadRefs.com or Estibot’s lead generation system. There is no real way to cookie cut this process or automate things accurately. You’ll find that sending bulk customized emails will just get angry replies & low ball offers. The best advice I can give you is that if you believe in the domain & that you can sell it, taking the time to send personalized emails becomes a fun task versus feeling like work. It must be a good trait that I carry to care about my buyer & make sure that the domain is a perfect match for their needs. Bombarding inboxes with  the same email will probably end you on the naughty list at the forums like this one: emails from domainers selling crappy domains

So the best advice I can offer is to believe in your domains. Would you want to buy it or is it crap? Why is it resellable to you? What price do you want for your domain? Can the domain fit the buyer’s exact needs? How many buyers do you expect may draw an interest to your domain? Do you have a good sales letter & pitch to present the buyer? First impressions are important, do you have an outlet domain that is legit from which you are selling domains from? If you were a buyer, would you trust your own website for the sale to complete from A-Z?

In the future, I plan to share email letters that seem to work better for me. I’d also like to share phone & face to face tactics that seem to work for me in determining a good sense if they are ready to buy or not. The price also holds some weight in determining if the sale is realistic or not. Too low & you’ll scare the buyer away as a scammer. Too high & you’ll scare the buyer away and lose the sale.

Good luck in selling your domains & more on lead generation & sales conversions the way!

How To Guide: Things I Look For When Catching Expired Domain Names

This post will cover things that I personally look for when catching expiring domain names & how I determine if a domain name has resell potential value. Everyday there are approximately 60,000 .com & .net domains that expire & are deleted from the central registry (Verisign). While most people rely on services like estibot, freshdrop, drop day & so on, I find that my unique approach has really helped me catch domains that I later sell for a good profit. I tend to catch only .com expired domains. I don’t spend much time or money in .net domains or any of the other extensions. I feel that the .com version of a domain is king & the best extension for maximizing profits.

I used to manually scan the daily drop list eye balling each domain line by line & looked for domains that simply popped out to me as a domain that I can later sell.  I found myself spending around three hours a day to eyeball the drop list. From eyeballing domains, I have had a lot of great sales.  I also noticed that a lot of the domains that I found from eyeballing the lists had no stats on estibot’s feed. So these domains would have gone under the radar & probably be available as a hand registration. I wouldn’t recommend that you start eyeballing the droplist, but here are some things that I factor in to find out if a domain’s worth in my eyes.

*note that these are my opinion on my strategy & only cover a small part of the spectrum that drop catching expired domains entails.

1.) I like to target domain names that other extensions are taken & a website is present. Eg, the .net and or the .org extensions of the same domain are available. Eg, ExampleWebsite.com is dropping while ExampleWebsite.net & ExampleWebsite.org are taken domains & they have a website built out that looks like a business or organization is using. The drawback to this is that expiring domains that fit this category always will have backorders put in & bidders at all the drop catchers eg, snapnames, namejet & pool. This trick is known around the block & these domains are far in between & valued by drop catchers. I’ve had success in selling a .com version of the same domain to a .org organization & they simply redirect the .com to the .net/.org or build out the .com while redirecting the .org/net to the .com.

2.) I like to use the Wayback Machine (archive.org) results to sift through the drop lists. if a domain had enough attention to get built out in the past, then it can serve a purpose today if caught. The issue is that a lot of these domains just don’t make sense. Although they were developed sites years ago, the most of the bunch are just plain junk. Sometimes there’s a diamond to be found, but that domain will usually appear under other statistics versus checking for wayback history as the single statistic.

3.) I find that searching by domain age can yield a list of domains that are aged, make sense & are dropping. If someone is willing to invest in a domain’s renewal fees for various years – then these domains maybe be worth looking into. Note that the age is immediately reset to today’s date the second you catch the drop. The better quality drops that are aged will usually carry a backorder at various registrars.

4.) Search volume & Brand-ability.  The search volume numbers are a good indicator of the amounts of google searches people are doing on a monthly basis. You’ll want to focus on the “Exact Search Volume” count versus the “Broad search Volume” count. Sometimes a domain will make complete sense to me & have a low or zero search volume count, so don’t let that disappoint you. The search volume is a helpful indicator, but it will really boil down to brandability. Is the domain brandable to cover the niche or category it’s serving? Is the domain brandable enough to become a brand of it’s own?

5.) CPC Costs (Cost Per Click). I like to target expiring domains which have a high CPC cost. The CPC count can be determined by the Exact search term cpc or broad search term cpc. This will yield a list of expiring domains which hold value if developed or parked & have a good amount of clicks & payouts based on the cost per click for advertisement banners hosted on the domain.

6.) Length does matter! The shorter the better. For instance let’s say I own: Ceramic-Outlet.com & the website: CeramicTileOutlet.com is an operational site, then I have the chance to present the owner of: CeramicTileOutlet.com the shortened version of his domain: Ceramic-Outlet.com & he can make an upgrade and benefit from an SEO angle more exposure to his tile business by using both domains or redirecting one to the main website & attracting additional visitors. Doing a simple google search for the term of the domain dropping will give you an idea on how many potential buyers you can expect who own a longer variation of the domain term.

7.) Pagerank, Overture & Alexa are also good indicators of valuable expiring domains. You’ll notice that domains with these stats may hold some value. Google Pagerank is difficult to keep intact once a domain drops. Alexa rank can help determine if a domain hold visitor traffic & rank. Overture is more keywords oriented & search results – this list can provide drops that may be valuable.

Once you’ve figured out the domains that you’d like to catch, the next question is to figure out a means of catching the domain at the most affordable price. You’ll find that a $59+ backorder fee on a domain at snapnames could have very well been caught at dynadot.com had you not made snapnames aware of the drop & put a hit on the domain using Dynadot’s API with drop catching software & pay registration fee on the expired domain saving you over $51. You’ll need to develop a sense as to which domains you feel are worth backordering at snapnames or attempting to save money & use an API or a cheaper backorder system.

You win some & lose some. Sooner or later you will notice that some domains will be caught by others & that’s ok.  This how to guide is more focused on you building a system that works for you. If you target 5-10 domains a day & end up catching 1-2  domains and lose the rest, that would be a good figure to expect.  The idea would be to warehouse & categorize whatever you catch & setup shop to offer your inventory to buyers. If you keep in mind that the whole picture is an ongoing collection of daily drops versus a one time deal – you’ll keep stocking up domains with resell value & have customers contacting you if the domain is good enough & has a clear purpose of use to your buyer.

italianceramicoutlet.com

Domain Name Investments IDNX – A Healthy Stable Market

I have been keeping a close eye on the domain name market for quite some time now.  It’s really nice to see that domain names are a consistent way to make money.In my opinion, Domain names continue to yield the highest amounts of profits. They blow away what your traditional stock market can do in regards to flipping your cash into more cash. I keep a close eye on the domain price index & other financial factors I believe contribute to the domain name market overall. For instance, I blend in comparisons of the top search engines & web companies into my research.

What I have noticed is that recently, domain name sales have been higher than usual. There was information released by SEDO showing a 3.1% fall for NASDAQ 100, 2.5% fall for Apple, 0.4% fall for Google while the domain market has experienced close to 22% growth over the past six months. The domain market continues to grow at this outstanding rate.  The growth is much more when you weigh in private sales that are not published to the public.

The IDNX (Internet Domain Name Index) & SEDO are closely keeping an eye on comparing domain prices to the NASDAQ 100 index. Their core comparisons establish domain investments are closely tied to the economy. In my research, I am seeing the overall picture for domain names to continue to become more valuable assets & gain higher sales prices.  If you compare domain names to the stock market on a personal portfolio level – I can prove how the domain name portfolio can outperform a traditional style stock portfolio.

Let’s start with a $200 example. Loosely figuring this scenario, let’s take a look at what we have to play with. I take the $200 & I split it in half. I take $100 & I invest it in the traditional stock market. I take the other $100 & I register up to 10 domain names to complete my 2nd portfolio.

My assumptions are that if I can double my $100 in 1 year, I will be happy. Usually the profits made from the stock market are much lower & I risk losing my investment entirely. My assumption on the domain portfolio is that I will pay $10 per domain & they are of mediocre quality. The domains have end user potential & I have completed up to one hour of resell research per domain.

If my stocks portfolio reaches $200 in one year, I would consider myself very lucky. To most stock investors, that is worth it & they will want to invest larger amounts of money. The domain portfolio of 10 domains has a $5,000 potential in one year. I came up with $5,000 calculating $500 per domain & 10 domains total. You may get more than $5,000, you may get less or even $0. This is where the domain name quality will matter most. But even if you sell one domain @ $500 & lose the other 9 domains – It has clearly outperformed the regular stock market.

I understand that most domain name investors are making out very well. While domain names as investments is rather new to most, the pioneers are making a killing. Most domainers I frequent are from the domain name forums or they have domain blogs. Most do not invest too heavily into the domain name market. With domain names, there are a few rules to keep in mind to become very successful.

1.) Quality over quantity. I would rather have a small handful of very good domains versus hundreds of junk domains that are worthless.

2.) Generic, brandable & service or product oriented domains yield the highest amount of profits. Ask yourself if the domain can be put to use. If so, who can use it & how?

3.) Don’t cut yourself short on the price by leaving money on the table. Do research on the buyer to feel out their budget & push the envelope. You’d be surprised how valuable your name might be to someone who needs it.

I would like to emphasize on the pricing. I usually go higher than expected on my pricing. This has yielded two sales this year around the $800 mark. Originally I was asking $60 per domain name & I decided to reprice my domains on SEDO where the sales took place. Sometimes the higher price tag makes the same more legitimate & encourages a buyer to buy the domain name. A domainer closed a private sale seven days ago at $6,800. He purchased the domain months ago on the drop for registration fee of approx $8.

The domain name market is showing dips that indicate the upcoming months will show a steady increase in profitability. Like a roller coaster, April showed a 2% fall for IDNX which should spike back up these upcoming months. You can track the IDNX price index on the Bloomberg & Thomson Reuters financial data platforms.

New Drop Catching Technology Tools Right Around The Corner

New drop catching tools will soon make their way to DropKing.com. We have a lot in store to focus on getting more drop catching users engaged with expired domain drop catching API’s and registrars of all kinds. The software is easy to use, backed by years of experience and allows you to schedule your drop catching activity.

For those of you who are not familiar with the term “Drop Catching”, this refers to catching expired domains in pending delete status. Between 55,000 – 80,000+ (.com/.net) domains expire each day. It’s a wild goose chase to who gets what and the more API’s on your side, the better your chances.

New to be added to dropking comes the namesilo API:

namesilo.com offers a cheap solution to register domains at a cheap price and they are favored by a lot of domainers. Namesilo has been a favorite and around the block for a while.

Next is namecheap.com

Namecheap has an easy to use API that will integrate with the dropking.com line of drop catching tools. Namecheap offers spectacular pricing and cheap domain registration discount codes.  This API addition will be a win/win for namecheap customers who plan to drop catch.

Beta testers are welcome for these new tools coming up. Please keep in mind that the above API’s have been a little hard to work with in regards to send random API requests that ghost expiring domains with blind requests.

The DropKing.com tools will soon integrate with the DNMeter.com drop order lists to avoid sending more than a handful of attempts for the domains you want. More to come real soon! We’re looking to bundle the packages and make your drop catching as efficient as possible.