The Great Combinator
Registered Member
- Jul 3, 2021
- 67
- 282
Yesterday I was talking privately with @rocknrollchef about my recent purchase of one word domain in ALT extension. I was telling him that same word .COM is for sale over $100k and .CO for $10k and that I that my acquisition at registration cost was a steal and that I will be registering another domain extension for that name as well The domain was purchased for a startup and not for resale but during overall research process I've done some abstract thinking and I think I see potential for arbitrage. I will not disclose full details and will be very broad in my explanation but everything is very straight forward. I cannot reveal juicy parts because that is what separates my approach from plain domain arbitrage of trying to offer existing businesses similar domain names. I am not targeting niches, I am not targeting extensions, I am not targeting businesses and instead I am hunting for universal dictionary one word domains that are available for registration and after finding them matching them to business.
Domains - 11 one word domains which are considered premium by registrar and cost $100 to register (price is rounded off on average)
Cost - $1100
Method - I've identified great one word domain in ALT extensions and before registering I've performed research on who I can offer it. I've made a list of 10 leads to whom I will offer to buy it, if first one doesn't get it I move down the list. What makes my approach different is that I was able to identify domains that can be used by many businesses. I essentially find businesses with the same name in different areas. Since its one word the businesses that I am contacting don't necessarily own .COM and typically owns long tail keyword domain. I've also discovered some that don't even have a website (yes in 2021 and these are physical business with dozens of employees) and they would be offered chance to buy domains. To those that don't have a website the domain will be presented as opportunity to have one word premium domain to create new website. For those that have website already it would be a chance for them to upgrade to a better domain. I will explain that having multiple domain names is like having multiple business cards and this is their chance to have a new premium business card. To justify my prices for domain I will show them that there are 10+ other extensions that already registered for this word and their prices. I found few comparable one word domains in this extension listed for sale with minimum bid of $5000. I will use that as example of how much other sellers are selling similar domain names for and ask them to invest into their brand. If they're not interested I will say OK no worries I will offer this domain to their competitor or offer it to them to lease for $100/month.
Example - POSEIDON, lets say I found 5 DJ Poseidon and 3 rappers using this name and they all have various websites, some have domain, some just soundcloud, some just FB, etc. I register POSEIDON.HIPHOP and offer it to them and to justify such price I will show them how much other extensions cost for POSEIDON & at the same time show them that NEPTUNE.HIPHOP has minimum asking price of $5000 and I offer it to them for $3000 and accept $2500.
Goal - wishful thinking is to turn each $100 domain into $2500-$5000 purchase. Most of the domains I think would be in $3000 asking price range when I will show them similar listed for $5000 minimum and 1 or 2 might pull of me asking for $5000 for them (they have a lot more other extensions already registered). One domain I am taking the biggest gamble and I will ask for $25,000 and have limited number of whom I can offer it. What supports my evaluation is $50,000 asking price for similar domain in this extension. I am just providing prices to them and convince them to make investment & secure the name for themselves.
Next steps - I will do nothing for next few days and work on my other projects. After that I will start contacting businesses and offering them domains to purchase. When there are sales I will post here to keep track.
Domains - 11 one word domains which are considered premium by registrar and cost $100 to register (price is rounded off on average)
Cost - $1100
Method - I've identified great one word domain in ALT extensions and before registering I've performed research on who I can offer it. I've made a list of 10 leads to whom I will offer to buy it, if first one doesn't get it I move down the list. What makes my approach different is that I was able to identify domains that can be used by many businesses. I essentially find businesses with the same name in different areas. Since its one word the businesses that I am contacting don't necessarily own .COM and typically owns long tail keyword domain. I've also discovered some that don't even have a website (yes in 2021 and these are physical business with dozens of employees) and they would be offered chance to buy domains. To those that don't have a website the domain will be presented as opportunity to have one word premium domain to create new website. For those that have website already it would be a chance for them to upgrade to a better domain. I will explain that having multiple domain names is like having multiple business cards and this is their chance to have a new premium business card. To justify my prices for domain I will show them that there are 10+ other extensions that already registered for this word and their prices. I found few comparable one word domains in this extension listed for sale with minimum bid of $5000. I will use that as example of how much other sellers are selling similar domain names for and ask them to invest into their brand. If they're not interested I will say OK no worries I will offer this domain to their competitor or offer it to them to lease for $100/month.
Example - POSEIDON, lets say I found 5 DJ Poseidon and 3 rappers using this name and they all have various websites, some have domain, some just soundcloud, some just FB, etc. I register POSEIDON.HIPHOP and offer it to them and to justify such price I will show them how much other extensions cost for POSEIDON & at the same time show them that NEPTUNE.HIPHOP has minimum asking price of $5000 and I offer it to them for $3000 and accept $2500.
Goal - wishful thinking is to turn each $100 domain into $2500-$5000 purchase. Most of the domains I think would be in $3000 asking price range when I will show them similar listed for $5000 minimum and 1 or 2 might pull of me asking for $5000 for them (they have a lot more other extensions already registered). One domain I am taking the biggest gamble and I will ask for $25,000 and have limited number of whom I can offer it. What supports my evaluation is $50,000 asking price for similar domain in this extension. I am just providing prices to them and convince them to make investment & secure the name for themselves.
Next steps - I will do nothing for next few days and work on my other projects. After that I will start contacting businesses and offering them domains to purchase. When there are sales I will post here to keep track.
