Comments on: What Domainers Make

By: David Wrixon

David Wrixon — Sun, 25 Nov 2007 16:11:24 +0000

David,

Sound to me they should be sifting the crap for potential drops. That is what you would do if these domains were human workers. You would bloody fire them!

By: David Harry

David Harry — Sun, 25 Nov 2007 08:15:43 +0000

We found this article interesting in that it validated what has been our thinking for some years now that just by having a large portfolio doesn’t automatically guarantee high revenue. It’s the old saying, ‘quality vs. quantity’.

We have only a small portfolio of some 1,200 domains that generate more revenue than some folks we know you have 10,000 domains. Through a very select criteria we have attained a ‘low cost’ and ‘high revenue’ domain portfolio. You can read about this and more concerning ‘keyword optimization’ at http://www.blog.xtraparking.com

By: David

David — Sun, 25 Nov 2007 05:59:24 +0000

Sorry, should have been less succint;

Using Sept Qtr figures:

annualised traffic revenue $8,040,000
annual renewal cost $3,370,000 (@ $6.74)
net traffic rev $4,670,000
500,000 plus names
net rev per domain from traffic revenue $9.34

Domain sales in Sept Qtr $857,000 (including bedroomfurniture.com for = or > $250k)

Essentially they’ve got a good portfolio of 153,000 names that generate $43.53 per domain. A crap portfolio of 347,000+ portfolio that costs them -$5.74 per domain. Combined its just $9.34 per domain.

Domain sales are increasing; last 5 qtrs:
297k, 318k, 333k, 638k, 857k (with DDN? influence evident in last 2 qtrs). The domain sales are across entire portfolio.

They need to make sales of about 500k per qtr to justify the crap portfolio.