discuss ROI domain names and desired profit

[devma]

Hello,

I would like to discuss what is your desired ROI or the reasonable ROI.
For example I purchased a domain name for $1000 5 days later I have received an offer of $5000 .. I turned down the offer

What do you think ?

 

[DavidH]

It all depends on what you are trying to achieve, what your goals are and how much knowledge you have about the niche involved.

If you are looking for short term cash, then turning $1000 into $5000 in five days would probably sound pretty good to many people, giving you cash to reinvest in alternative opportunities, and then rinse and repeat.

But if you know the name is worth much more because of your specialist niche knowledge and you are able / happy to wait, then that may be an alternative option for an even greater return.

Of course none of us can sell every name we have, so a relatively high ROI is needed for the ones we sell to cover the costs of the ones we don't sell. I typically look for a 20x return on my hand registrations, but even 10x is still a reasonable profit to reinvest in better quality names.

 

[spigiv]

I have no idea about the name in question but I would never have left that money on the table if the offer was legit. That said, not knowing the name and the background at all but 5x in 5 days I would take the money and find 5 more names to buy.

With 2% avg sales on a portfolio and a renewal cost of 10$ a name a name need to sell for minimum 500$ (reg fees) plus acq. cost plus desired profit. Lets say you let 50% of your names drop over time you can double those numbers. With these assumptions one should aim for purchase price + renewal fee * 100 on all names (as a rule of thumb) to break even. Assuming purchase price of a name is a sunk cost (which it is not for better names).

So which ROI to aim for? How long is a rope? Impossible to answer unless you are more specific on acqusition costs/types of names etc.

I personally like @DavidH wrote aim also for 10-20x minimum. On brandables even 50X sometimes.

 

[AEProgram]

Depends on the name, depends on the size of your portfolio and the quality of it.

 

[biggie]

What do you think ?

Hi

i think, if you had $1k to spend on a domain, then it probably wasn't the last dollar in your pocket.

so, from that,
it's fair to assume you don't "need" the money or you would have taken the $5K on the table.

also, if you received an offer, 5 days after acquisition, then that (in my mind) would validate the decision of purchasing that name and also solidify my valuation of it, by turning down the offer.

dats, what i think


imo...