Blog

My Type-In Domains

Published: July 17, 2012

Author: Todd Mintz


Several years ago, I fancied myself a domainer.
Well, not really.  :.)  I didn’t have the capital to enter the secondary market to buy “premium” domains…and even if I could afford to, I’d wouldn’t have because I didn’t really have any way to monetize these sorts of domains enough to make my investment ROI. Plus, I wasn’t nearly savvy enough either in sales or marketing to execute profitable flips.
However, I was intrigued enough to put into action a plan to buy a decent number of new registration domains based upon their future branding / keyword potential.
Some of my investments from years ago look pretty smart. I bought a dozen relevant domains after I got my first look at Obama’s Healthcare legislation. If the law becomes fully implemented in 2014, I stand to have a bunch of profitable assets. However, up until now, these healthcare domains have been an expense, not a profit, and that’s not going to change for another couple of years.
I’ve sold several of my domains at a few to several hundred dollars, each to private parties.
I’ve also spent a decent amount of money on “experience”…domains that I thought were decent purchases but made no money from ad clicks and weren’t wanted on the secondary market. I also lost money on names based on “future scenarios” that didn’t pan out.
Very recently, for the first time, I nailed my first two domain names that are producing consistent type-in traffic.
About three years ago, I read a news article that caused me to “invest” in domains representing a particular term. I wasn’t able to get the .com but did get the .org and the .co.uk. These domains were basically worthless for me for those three years as the “event” that I invested in journeyed towards fruition without getting derailed.
A couple of weeks ago, the future bet I made three years ago came to pass. Immediately, I began getting type-in traffic to my domains, which are parking pages containing paid search ads.
Unfortunately, type-in traffic for .org and .co.uk is a very small fraction of .com type-in traffic. Still, I am getting 4-8 visitors each day to each site and the click rate on the ads is pretty decent. Each domain is generating about $1 per day.
$1 per day doesn’t sound like much…however, multiply that by 2 and that by 365, I end up with $730 per year. At a carrying cost of $10 per domain per year, I net a nice profit.
Even better, if my domains can consistently earn this amount, I can sell them based upon a revenue multiple, which could be a nice $,$$$ sum.
Most of my domaining activities have been based on trying to hit home runs (and getting mostly strikeouts). However, hitting a couple of singles can be very satisfying, and that’s what I’ve done here.

 
 
 
 
 
 
 
More insight from a “real domainer” who just posted on the same topic. :.)
Todd Mintz, Sr. Account Manager

25 E Washington Street
Suite 420

Chicago, IL 60602

(650) 539-4124

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