Here is an overview of my activity in 2021.
Investing in estates is my third most important business from a financial standpoint. I don’t do it for the cash; I reinvest what I earn by selling in new areas. I thought it would be interesting to share some of my numbers for 2021.
I have 31 sales on Dan, Afternic, Squadhelp, Uniregistry and DNWE. I think I’m missing a few private deals, but I’m looking at a sell rate of around 1.7%. I think it’s okay to sell most domains between $ 1,000 and $ 5,000.
Here is a breakdown by platform:
Afternic – 18
Dan – 7
Squad Helper – 3
Uniregistry – 2
DNWE – 1
Afternic gets the most sales for two reasons: first, its network of buying paths with registrars; Second, most of my domains point to it. I’ve moved to other platforms a lot over the past year or so and don’t know how many of my sales at Afternic are from landing pages versus the network. (Tip to GoDaddy: I would do more if you shared this data.) But the number is slightly higher due to where I point my names.
This year I worked with an Afternic Account Manager to fix my names stuck in Afternic Purgatory, price other names, and optimize which lander the names point to (buy now for less, ask for price for more) . My sales volume is too small to show a significant increase over this, but the end of the year has been stronger than before I was optimizing.
At Dan, a few sales were on payment plans. One of the buyers stopped paying, but I got some money out of it. I continue to be impressed with Dan’s platform: ease of use, fast payments… it works. His support has also been faster this year.
I have entered into three agreements at Squadhelp. Two were standard listings and one was in the premium market. They sold another domain for me, but I no longer owned it. Squadhelp continues to innovate and I’m excited to see how their geo-domain tools are performing this year. Oh, and Squadhelp Support wins the award for the fastest response times in any market.
Although I worked two transactions at Uni, the buyers ended up doing the transactions elsewhere. One ended up buying a domain through the Afternic network from their registrar because it was more convenient, and the other couldn’t get their card to work at Uni, so they bought it through Dan. I did not include these sales in the Afternic / Dan figures above.
This sale of DNWE took place at the beginning of the year. I think DNWE came out of the door with a lot of momentum, but it kind of fizzled out in terms of new features as owners turned more of their attention to NFTs. I don’t blame them.
Here’s a breakdown of sales by TLD:
This .capital sale was a name that I let expire, but someone bought it through Afternic, so I re-registered and sold it. I guess there is an advantage to Afternic having lousy domain management controls.
Sales of .gg, .vip, .co, and .capital domains were quite low, with a few under $ 1,000.
So far, buyers have used 8 of 31 domains.
As I mentioned above, I generally reinvest 100% of my domain sales in building my portfolio. I get my cash flow from Domain Name Wire and PodcastGuests.com ads.
I started the year strong with expired domains, took a break in the middle, and then picked up a bit towards the end of the year.
My hiatus in the middle of the year was for several reasons. First of all, I was frustrated with having to manage domains after winning them. Especially with SnapNames, which puts your domains in a bunch of different accounts. Second, I flirted with selling PodcastGuests.com, so I spent some time with this business to analyze the numbers and put together a pitch.
It looks like financial buyers are willing to buy companies like this for around 3.5 to 4x. That’s okay, but it’s a tough sell if your business continues to grow. Even at a steady state it gives a 25% yield per year, and there aren’t many ways to do that kind of yield. Yes, the sale is taxed at a lower rate and you don’t have to think about the business anymore. But it’s still hard to swallow for a company that doesn’t take much of my time. I will think about it again this year.
I bought most of my expired domains from GoDaddy, DropCatch, and SnapNames. This year I think I’ll play around with Sav.com auctions a bit, especially non-.com ones. I also bought a few spare domains from Sedo last year that I like, Melodrama.com and GamePiece.com.
Towards the end of the year, I acquired a few .xyz domains. I have a small .xyz wallet and I added valid.xyz, swat.xyz, and peanut.xyz, and a few others. It’s still a bet, but I think it’s a worth bet if you get the domains at reasonable prices.