Sweet Spot

Finding your sweet spot in sales is very important, especially for those who rely on outbound to generate a proper cash flow.

IMO if you are a new domain investor with a limited budget, you must be thinking about how I’m going to get my first sale, for how much, and how soon. Well, you are not alone; everyone goes through these questions.

Outbound is one of the best ways by which you can generate cash flow, but to achieve this, you must do it every day because showing up is half of the battle, and before you start buying and selling domains, you must figure out your sweet spot.

If you do not know your sweet spot, it means that you are shooting arrows in the darkness, you might get lucky and get one or two sales here and there, but that won’t last for long. You might end up selling your domains at a shallow margin, or you overprice them, and it will become even harder to find a buyer.

Here are few different strategies I was using to find out the sweet spot for a domain.

How much you paid for the domain

Usually, new investors with a limited budget start their domaining journey by picking the name from expireddomains, backorder, GoDaddy closeouts, hand registration because it doesn’t cost that much. You can pick up domains from all these resources by paying only $8-$59, depending on the domain’s quality.

So if you have paid only $8-$50 for a domain and able to flip that name for $300-$500 within few days, that’s an excellent ROI IMO, especially if you are new.

And if you can able to repeat the same process once or twice every week, you are looking at the average weekly income of $600-$1000, not bad, right? but to achieve this, you must do it every day.

According to my experience, when I was flipping domains for the $300-$500 range, most of my buyers were small mom and pop shops, and they really can’t afford to spend thousands of dollars on a domain, so by keeping this in mind my sweet spot for those businesses was around $300-$500.

Similarly, if you have paid $100-$200 for a domain name, I believe your sweet spot for such a domain should be around $800-$1300(outbound) or maybe slightly more, and many will say you should ask for more, and I agree. Still, I believe you are always a few steps behind doing outbound because you are knocking on their door rather than they coming to you, so you’ll end up selling your domains at lower prices most of the time, depending on the domain quality.

One of the other reason why your asking price for a $100-$200 domain should be around $800-$1300 is:

If more domainers were also bidding on that name, it means this domain is in demand, and it can fetch a higher price than the $8-$10 hand registered name.

Still, If you want the maximum value for your domains, I highly recommend listing them on different marketplaces with your asking price and wait for the buyer to come to you.

The industry the domain falls into

The other criteria you can use to figure out the asking price for your domain is the industry it belongs to; if your domain falls under high paying/competitive industries, there is no harm in asking more, even if you are doing outbound.

High paying/competitive industries examples:

Healthcare

Logistics

Tech

Legal

Retail

But don’t shoot for the moon be reasonable; do proper research by checking comparable sales data via namebio, Godaddy appraisal tool. You can also check the dedicated outbound sales data on our website to get an idea of what price range domains are selling for.

Businesses in these industries spend thousands of dollars in advertising, and if the domain you are selling is short and does have good value like high SV, CPC they won’t mind paying a fair market value for such domain.

Cash Flow

Cash flow is vital for a full-time domain investor like me. I mean, I can’t afford to wait before a buyer come to me because I don’t have an extensive portfolio, and in order to achieve two sales every month (inbound), I should have a minimum of 2k domains because the average industry STR is 2%.

Building a significant domain portfolio takes time, and if you are on a limited budget, it becomes even more complex. As I mentioned earlier, outbound can help you achieve good cash flow, and cash is king, and I believe in cash flow. I have experience in sales, and I need deals coming into my inbox every day because that’s what keeps me going.

These tiny little wins keep my going; initially, these small 3 figure sales may not look much, but in the end, they all add up.

A sale is a sale. 

That’s it for now. I hope this can help you to find out your sweet spot.

Namaste 🙏

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