We’re joined by three Domain Sherpas: Andrew Rosener, Monte Cahn and Shane Cultra.
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On today’s Review, Drew Rosener, Monte Cahn and Shane Cultra tell you how they’re getting great buys and sales, which industry is booming that you should invest in, and what domains going to auction soon will give you the best return on your investment. Stay tuned!
Michael: Hey, Sherpa Network. Thank you so much for joining me today. I’m Michael Cyger, publisher of DomainSherpa.com, and this is the DomainSherpa Review. This is the show where we get into the minds of successful domain name investors using real examples so we can learn strategies and tactics to become better investors ourselves.
We have three segments to the review. We’ll start off learning what the Sherpas recently bought and sold or brokered. Next, we’ll discuss and value an investor-submitted domain name portfolio. Finally, we’ll preview some domains going to auction soon at NameJet.com and whether the sherpas thing they’re good investment opportunities for you.
Joining us today on the DomainSherpa Review are three past Sherpas and industry thought leaders. In order from left to right, we have Andrew Rosener, CEO of the domain name brokerage firm MediaOptions.com. Monte Cahn, Co-founder and President of Right of the Dot, an Internet consulting firm specializing in new and existing top level domains, and the organizer of the live domain name auction taking place at NamesCon in January. We’ll learn more about that later and some awesome deals that you can bid on, so get ready for that. And Shane Cultra, publisher of the blog DSAD.com and owner of Country Arbors Nursery in Illinois. Sheraps, welcome to today’s show.
All: Thanks, Michael.
Monte: Great to be here.
Michael: It’s good to have you. Monte, it’s been like a year since you’ve been on the review. Always a pleasure to have you on the show. Because you’ve pretty much grown the inudstry for us. You were founder of…
Monte: Moniker. President [inaudible 00:01:35].
Michael: Moniker. So one of the first and oldest registrars. And so, it’s always great to have you join our Sherpa panel of experts.
Monte: Great to be here.
Michael: We’re going to jump right into it. We’re going to start off with a segment called “What’s New, Sherpas?” where the Sherpas share one purchase and sale that they’ve made over the past few weeks, and we get to learn what they paid or received for the domain name, why they thought it was a good deal, what they think the retail value is, and how the negotiation progressed. I’ll lead you through the questions, but the other Sherpas will get to comment during the process as well.
This segment, we’re going to go Drew, then Shane, then Monte. Drew, what’s one domain name that you’ve personally bought or sold or brorkered in the past couple of weeks? Tell us the domain name first and not the price.
Drew: Okay, how about this? I just did a deal today for 18 three-letter .net domains. Or is that too complicated?
Michael: Wow, love it. Eighteen three-letter .nets. And you bought it, you sold it, or you brokered it?
Drew: I bought it.
Michael: You bought it? Okay, so you bought 18 three-L.nets. All right. Monte, let’s go to you. What do you think is so…
Drew: Actually, hold on. I will say that none of them are so-called “chips,” because that does make a big difference. So none of them are chips.
Michael: Are any of them words?
Drew: One of them is a first name.
Michael: So they’re basically western acronyms?
Drew: Yeah. For the most part, just assume all are just random three-letter acronyms, non-Chinese premium.
Michael: Non-Chinese premium. Okay.
Monte: And no numerals, right?
Drew: No numerals. All letters.
Drew: Three letters.
Michael: We’ll go back to Drew. But Monte, I want to hear from you and Shane what you think Drew paid for them, knowing that Drew is buying on, generally, a wholesale value. What do you think that he paid for them?
Monte: Eighteen .net…three-letter .net names?
Monte: I would say $50,000.
Michael: $50,000. Shane, let’s go to you. What do you think Drew paid for 18 three-l .nets?
Shane: Yeah, I was going to say $45,000 to $50,000.
Michael: $45,000 to $50,000?
Michael: Drew, what did you pay?
Drew: Okay, I just want to specify that, again, these are not chips.
Shane: Okay. Yeah, but you said but they’re not non-chips with vowels, either. There’s a huge…
Drew: What are you talking about?
Shane: Well, I figured you buy…
Michael: Let me put this in perspective. Monte and Shane thought you paid about $50,000, which works out to about $2,780 per domain name. You’re saying that Drew bought wholesale, 18 domains on an average price of…$2,800, let’s say.
Monte: That’s pretty good, I think.
Michael: And then if he sells them…
Monte: But obviously, he’s indiciating that it’s less.
Michael: Yeah. I think so as well.
Monte: Now, I’m going to go to $25,000.
Michael: Exactly, $25,000, all right. Drew, let’s go to you. What did you pay for the blot of 18 three-l .nets?
Drew: I paid $19,300.
Shane: There are a lot worse letters than I was thinking.
Michael: All right, so divided by…
Drew: Hold on. I’m very curious here. Because I actually have been out of this market for a while. So this was a little bit of a blind purchase for me. I looked at what some recent sales are. Why did you guys guess so much higher?
Shane: Because I figured…go ahead, Monte.
Monte: No, you go ahead.
Shane: I was going to say, I figured that they were strong, western-vowel acronyms like CMA…
Drew: Yeah, okay. That is what they are.
Shane: Yeah. So if they’re like CMA, then that’s a strong purchase because those are really climbing in value right now. And if it’s XUP or something, it’s not nearly strong, because it’s kind of a mix of Western and Chinese, and those are struggling. But if you have good Western letters, yeah, that’s a good buy.
Monte: And then I thought that the three-letter .com names are still going for around $50,000, so .nets are 10% of that, generally. That’s why I put $50,000 on it.
Drew: Got it.
Michael: I don’t think that Shane and Monte are investing personally in .net, so it’s a little difficult without looking at name/bio/data to say, “What’s the going marking (?) rate?” Maybe I’m putting words in your mouth. Correct me if I’m wrong, Monte and Shane.
Drew: I wasn’t actually being critical. I was actually more curious. Because like I said, I honestly have not been buying or selling three-letter .nets in quite a while. And really, the reason for that is that there really just hasn’t been a ton of them in the market, except for the Chinese premiums, which are really selling for a lot of money now.
And so, I actually wasn’t that secure with the price. I honestly was like…I thought I kind of overpaid. But…
Monte: No, I think you got a good deal there.
Shane: I’ll take them from you right now if you want to get out, if you’re feeling sell.
Monte: Yeah, you’ll sell three or four of those and make your money back.
Michael: And I’m looking at NameBio, and it’s hard to get the average, but there’s a lot of $2,000 sales, $1,000, $1,400. There’s a few…
Shane: Nothing under $1,000, under…
Michael: There’s a few around $500.
Shane: But what’s the letters?
Michael: Yeah, like zxo.net went for $610 on NameJet. QOA.net went for $520. UVJ.net went for $490. Clearly, the letters make a big difference.
Shane: But you’re combinbing that Chinese and the vowels, which is a bad combo. Those are the ones that are really struggling.
Monte: So what are some of them, Andrew?
Drew: All right, yeah, to be fair, here’s some of the names. We’ve got ned.net, that’s the first one…
Monte: I have Ned.com from that owner, so yes.
Drew: How much of that?
Monte: He wants over $100,000. $110,000, I think, is his minimum of that.
Drew: Which isn’t that bad. That’s a great name.
Drew: Aae.net, so three vowels. And I like the other one just because of…
Shane: Let me get you out of the package, Drew. I’m nervous for you. I should probably buy it from you. You’ve got other things to do. This is not the risk you want to be taking.
Monte: You know what? I’ll back you up, Shane, because I don’t want you to [inaudible 00:08:32]. I don’t want you to go out and spend all that money on your own, so I’ll give you some insurance.
Michael: Give me one more domain on the list, Drew, that you like.
Drew: I kind of like a lot of them. Okay, so there’s…I like this one, sre.net. And the reason I like it, is I sold the .com for a lot of money.
Shane: Real estate.
Michael: Oh, yeah.
Drew: Yeah, sre.net.
Shane: I’ll never forget that. I learned that on a couple shows ago.
Michael: All right, Drew, let me…
Drew: And it’s short for “Siri.”
Michael: Drew, people want to know a little bit about the details. How did you come across this deal for 18 three-l .nets?
Drew: My good friend, Oliver Hoger [SP] just apparently bought all of GoDaddy’s three-letter .net inventory that they have left. Or at least all the non-Chinese premium three-letter .net inventory.
Shane: That’s Oliver calling to tell you you shouldn’t have said that out loud. He says he wants his names back.
Drew: Being the good friend that he is, he came to me first. And I made a little deal with him. And now, I might go make another one when the show’s over.
Michael: Tell about the negotiations. What was the offer when he came to you?
Drew: Actually, his asking price was about two and a half times what I ended up paying.
Michael: Wow. So he was asking, like, $30,000, $40,000, $45,000?
Drew: He was asking like $1,200 to $3,500 each.
Monte: So being the good friend that you were, you decided to beat him down [inaudible 00:10:06]?
Michael: How do you negotiate with a friend like that, Drew? If he comes in at, say, $45,000 and you want to be around $19,000, what are you going to do, hit him at $10,000? How do you negotiate with a friend?
Drew: Okay, so I actually want to preface this, because I actually didn’t feel like I was getting that great of a deal. I think I gave him a fair deal. Honestly, what I did is I went and looked at NameBio, or just like you just did. Because I really honestly and truly was not sure of what the market was. If you had asked me a year ago or two years ago, I would have, with my eyes closed, told you [inaudible 00:10:42] exactly what the market was based on what the letters were. But I really haven’t traded in that market at all, like, at all in a long time.
I look at NameBio, I saw all the Chinese premium stuff was going crazy; $2,000, $3,000, $5,000, a lot of money for those types of names. And then I saw anything that had vowels in it or a “V” like it was going for $500 to $800, $900.
There were exceptions to that with really good combinations, even if they had a letter in it or so. And so, I kind of just took an average, and I was like…I like these types of names. I like three-letter .nets, I like three-letter .orgs, I like three-letter .coms, I like four-letter .coms. I like these names where I can get into it for a few hundred dollars, get into it for…even if it’s a few thousand dollars and sit on it. It’s a numbers game, though. You’ve got to have a bunch of them. You can’t say, “I’m going to buy one and hope for the best.”
But if you get a decent amount of them, you can do like what Monte said. My plan is to sit back and wait, and over the next couple of years, I’ll sell…let’s say I sell three of them, five of them. I expect to pay back the whole portfolio with a few sales, and then the rest is gravy, right?
Drew: I wasn’t necessarily trying to buy these because I thought I had upside on the wholesale front. A few years ago, I would have been. A few years ago, even if my intention was not to sell it in the wholesale market, I wanted to be buying it where I knew I at least had a little bit of upside. Where I had a little bit of margin for error if I need to get out of it.
Now, unfortunately, the market…fortunately or unfortunately, depending on the side of the table you’re on, the market has gotten really efficient when it comes to these types of names. And so, it’s getting increasingly more difficult to make a margin at wholesale. But there is still a very good model to be able to buy a three-letter .net, .org, .com. Less on the “com” because now, the prices are quite high. And then four-letter .coms, I really like just to buy them up, you know? You’re getting into it for a few hundred bucks, a few thousand bucks. And the margin when you resell it is going to be a multiple. It’s not going to be…if you buy a three-letter .com for $50,000, most end users aren’t going to pay you more than $75,000. Maybe you’re going to get $100,000. Not that that’s a bad margin, it’s great. But the risk to reward is a lot worse than buying one of these for $800, and then selling it for $5,000 or $7,000, or $8,000, or $10,000.
Michael: Yeah. What will generally be your pricing on these .nets when you get inbound inquiries on them?
Drew: Most of them are going to be priced at $4,999.
Michael: Got it.
Drew: Some of the better ones will be $7,500.
Michael: Yep, makes sense. So you went to…
Monte: Note to self.
Michael:…NameBio, you saw that there are 20, 30 three-letter .nets selling every single month. You know what your liquid value is for those. You made a decision that it was a good investment that was going to take a number of years to pay back, but you’re willing to do that, and you got a great package. You don’t know which ones are going to sell, but you know it’s a numbers game.
Michael: And kudos to Oliver for going to GoDaddy, getting the list of the .nets, and negotiating a deal with him. That’s how…when GoDaddy is making these big acquisitions and we hear about them, what, every quarter? They picked up Birkins, [SP] they just picked up Ian’s portfolio…what was it, over in the UK? They’ve got domains that they’re willing to package up and put good pricing on. And so, if you buy a few of them, if you’re saving up your money and you buy a few of them, you can get a good deal. So congrats to Oliver, congrats to you, Drew.
Shane, let’s go over to you. What’s one domain name that you bought or sold, maybe a portfolio? Tell us the domain [inaudible 00:14:48].
Shane: Mine’s the entertainment value always, of course. I got one for a client. Imdumb.com.
Michael: So I-M-D-U-M-B.com?
Michael: For a client of yours?
Michael: You mean like a nursery client? They were buying a Christmas tree and they came to you, and they’re like, “Shane, I want this domain”?
Shane: It’s on the “Buy” side. We had to get the name. Imdumb.com.
Michael: All right, so you bought it. Let’s go to you, Drew. What do you think Shane helped his client buy on Imdumb.com for?
Drew: I’m going to say…
Shane: It’s [inaudible 00:15:29].
Drew:…I don’t know, man. I’m going $800.
Michael: $800. Monte, what do you think?
Monte: I was going to say $4,500.
Michael: $4,500. Yeah? Because he’s buying it. Who knows who owned it?
Michael: Yeah. Shane, what did you help your client buy I’m Dumb for?
Shane: No client. It’s me.
Michael: It is you? All right.
Shane: And the reason I put it out there is I got it for $12 at Go Daddy auction.
Michael: A $12 close-out at Go Daddy.
Shane: But for I’m Dumb…
Monte: That’s right, Shane. You’re not dumb.
Drew: No, exactly. That was a great buy.
Shane: For $12, spelled right, I-M-D-U-M-B…$12, you can’t pass that.
Michael: Now, come on, you guys, week after week…
Drew: Hold on, is it “I am dumb”?
Shane: No, “I’m dumb…”
Michael:…you’re like, “What’s the commercial value…”
Shane: It’s I-M…
Michael:”…is abusiness going to brand with it?” Why do you think it’s a good deal?
Shane: Again, for price to value, that’s the important part of this industry. People think that’s not a great name. But things change according to how much you paid for it. And I guarantee, an email alone is worth a couple hundred dollars for somebody just to have fun with it. There is money to be made on these short, little, fun names. It could be used for a lot of different things, a fail site for some kid. I know I’ll sell it.
Drew: I’ve spent thousands buying names that I just thought would be a super hilarious email address. Really for no other reason than “I need to have that email address because I’m going to send an email to this guy…”
Michael: Totally. For $12, just to screw with somebody, Shane does that with your city.org. Don’t you own that?
Shane: I do that all the time.
Michael: Once a year, you send late tax bills to your friends, right?
Shane: Absolutely. I bought champaign.org, and I have sent so many public defecation notices out to people. I got it down to an art.
Michael: To your running friend, yeah, that just can’t make it back to the bathroom and have to drop trou at some place…
Shane: It’s a great, quick story. We were running and he just had a problem, and he had to use it in a park. And the next day, I used champaign.org to send him a letter for a $120 fine that he was seen in the park defecating, and I put his license plate on there and everything because I knew it. And it looked so legit, there was no reason for him to think it was fake. It took him weeks to figure it out.
Michael: Oh, my God. Did he call the city…
Monte: Now you can…
Michael:…try and come clean?
Monte: Now you can send him an email from “Shit, I am done.”
Michael: Exactly. It’s the follow-on email. All right, so, Shane…
Shane: Domains are great.
Michael:…clearly, $12, hand-registered, it’s close to it, what would you price it at? Now that it’s in your portfolio, if somebody were to inquire, or if you set the “Buy it now” price on Afternic because come on, it’s going to be…
Shane: I wouldn’t even put it on Afternic. I’d probably put…on my own landing page, I’d put $500 escrow, quick…
Shane: And I have sold several of those names for $300 to $500 where it’s just quick money. It’s enough to buy them more. And I have a lot of dirty names I can’t say that are pretty quick and funny that I bought that are just great email addresses, and they’re memorable and short, and that’s really what branding’s all about.
Michael: Yeah, awesome. Good buy, Shane. Thanks, buddy. Monte, let’s go to you. What’s one domain name you’ve bought, sold, or brokered in the past couple of weeks? Tell us the domain name and not the price yet.
Monte: [inaudible 00:18:53] note to self, contact Oliver.
Michael: Seriously, yeah. Oliver’s going to get lots of drinks at NamesCon.
Monte: Second note to self, Andrew, you want to put any of those names in the NamesCon auction at Zero-Reserve?
Michael: Maybe throw a little package up. Maybe four of five names.
Drew: Honestly, in analyzing, I was going through, and I’m thinking to myself, “I’ve got to give Monte some names for this auction.” And I was just like, “You know what? I’m a buyer. I’m not even a seller. I don’t even…I have a disease.”
Michael: I’m in love with my name.
Monte: Besides your throat cancer?
Drew: I really like…it’s actually…it’s getting to be really difficult for me. I really don’t want to part with any of these things. It’s like…I don’t know.
Monte: I’m glad to see you were going to be a buyer at this year’s auction again.
Drew: I’m always one of your top buyers. Always.
Monte: All right, good. I look forward to it.
Drew: I’ll put one of these in there, I’ll put one or two…maybe a few.
Monte: All right, submit it.
Monte: All right, so, Michael, the name I did a transaction with is cpl.com.
Michael: Ooh, cpl.com. Did you buy it or sell it or broker it?
Monte: I brokered it.
Michael: Okay. Did you broker it for the buyer or the seller?
Monte: I brokered it for the seller,
Michael: Okay, so you’ve got…
Monte: Well, I represented the seller…
Michael: You represented the seller, right. And so, that gives Shane and Andrew a little bit more information about the pricing. Were you trying to buy it at wholesale, or were you trying to sell it at retail? Now, they know you’re a seller.
Monte: Selling at retail.
Michael: Shane, let’s go to you first. What do you think Monte helped sell cpl.com for? What do you think he got?
Monte: Shane’s looking up where it’s going right now.
Shane: [inaudible 00:20:43] fingers.
Michael: So your hands do not touch the mic.
Shane: Yeah, I could figure out probably a better price. And I know we’re not talking just auction names. I will say $85,000.
Shane: It’s probably less than it’s worth, but $85,000 is a good number.
Michael: Yeah. Drew, what do you think?
Drew: CPL is “Cost per lead,” that’s a pretty big segment. CPL, solid name. Very, very, very good three-letter .com. You don’t get ones like that that offen that come into market. I’m going bigger, I think $250,000.
Michael: $250,000. Wow. Yes, it’s CPL, but it’s also like “Power and Light,” right? Carolina, Cincinnati, I don’t know. There are tons of cities that are power and light. Let’s go to you, Monte. What did you help sell cpl.com for?
Michael: $140,000, right there in the middle. Congrats, that’s a great sale. Who was the eventual buyer?
Monte: It went to the largest staffing firm in Ireland, and they were using cpl.ie, and they wanted to go more global…
Monte:…so they bought the .com. It made sense.
Michael: There’s a great tip for investors, for people that are looking to global, they may start in the ccTLD, the country code. But eventually, they’re going to want maybe the .com or maybe the .net that Drew has.
Monte: Right. So they were operating within Ireland boundaries the whole entire time for years. They’re a large staffing firm. Right now, they’re forwarding it to it right now, but they’re supposed to be changing the website and everything.
So it started at a $10,000 offer and took literally six weeks to get up to $140,000.
Michael: And because you were representing the seller, Monte, did you do outreach on this? Did you contact the staffing firm?
Monte: I did do outreach and found them. That’s how it all happened. Honestly, candidly, I had no idea that they were going to go global. And then I contacted a bunch of…if you look at the acronym, there’s a number of different options. Not many paid ads for it, but it’s an acronym that could mean lots of things. Like you said, Carolina Power & Light…there’s lots of options.
Michael: And how many outreaches do you think you did? How many total emails were sent? How many phone calls…if you add them all in, how many did it take to get to that $140,000 sale?
Monte: Well, there was 22 potential buyers that I reached out to. There was a number of duplicate emails and probably 10 or 15…10 phone calls or so out to get to the seller.
Michael: And you had no idea that cpl.ie was interested in going global and upgrading? You were just reaching out to everybody that was a cpl in a country code, maybe a longer domain name that wanted to shorten to it? What’s one tip you have…
Monte: They were cpl.ie, so they were short anyway. So they’re actually a little bit longer with .com. But obviously, no one knows that they’re a global staffing firm, so now they will.
Michael: Right. But if there was like a Carolina Public Lighting or whatever…
Shane: [inaudible 00:23:59].
Michael:…that might want to…is that somebody you might reach out to as well?
Monte: Yeah. I reach out to a bunch of people. Anyway, it was a good sale. The client was happy, and the seller…
Michael: I bet.
Monte:…the seller was happy [inaudible 00:24:11].
Michael: And so, what did you tell the client before you took them, that you thought you might be able to get for the domain name?
Monte: Well, as everybody knows, the cost for three letters have been going down just due to the Chinese market. The average sale price of these things now…in general, are between $35,000, $50,000 as we know.
But we also know that end users will pay up. So I put an expectation of $45,000 to $60,000 on it. They wanted $85,000 for it. And so, they got $140,000.
Michael: Yeah, that’s awesome. Congratulations, Monte. And thank you all, Sherpas. I want to tell you about three of our sponsors for today’s show.
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Michael: All right, we’re going to move on to the next segment in the show…
Drew: Because you didn’t invite the right email address.
Michael:…in the Domain Portfolio review, we take user-submitted domain name portfolios and provide honest and constructive feedback to the owners so they can either cut their losses, continue to hold the domain names long-term, or figure out a sales strategy going forward.
Today’s portfolio was submitted by David Fry. As part of David’s submission, he made a generous donation to the Fred Hutchinson Cancer Research Center to help us all find a cure for cancer. David’s list of 25 domain names starts with AlaskaDealer.com and ends with WyomingDoc.com. A good number of geo domain names and a list of few keyword domains, and one Trump domain, so we’re going to find out what the Sherpas think of that.
If you’re watching the show on video, this is the point you should press pause on the show, scroll down a little bit, review the domain names, price the domain names yourself, pick your top three that you think are definite holds. Pick your bottom three that you would drop. Then come back and watch the rest of this show, and hear what the Sherpas are saying about them, what their insights are. That’s the way you improve your skills.
This segment, we’re going to go Shane, then Monte, then Drew. Shane, let’s start with you. When you look at David’s list, just from a high-level, holistic perspective, what do you think of it in general? How’s his strategy looking?
Shane: Well, I think…the first thing I looked at it and thought this would have been really good eight or nine years ago when geos were super hot and parking was paying for everything. This is what a lot of portfolios looked like. That’s changed quite a bit over the years where parking doesn’t pay the bills, especially in geo.
My first thought was I can see where he’s going. But when you go geo, it’s harder to go broad. And when I say “broad,” I mean states and countries. It doesn’t target real well. If you’re trying to target your city and you’re using the state…because you’re not serving the state. You want to have a geo that targets what your clients, the city they live in.
Michael: So an example is WyomingDoc, short for “Doctor.” Doctors don’t serve an entire state, generally. They’re serving a city.
Shane: Exactly. So unless it’s some kind of organization that represents statewide doctors, I don’t see the value in those kind of names. Some of the industries do a little better. Banking, a lot of times, they will have the state; Illinois Bank, Ohio Bank. So I think a name like “Ohio Bank” would be good, but now, we’re getting into the form of the verb that throws it off.
We talk about this all the time, the stretching out. We’re almost there, and then they add something on the end to make it a little cheaper, make it a hand reg and kind of take it off.
Michael: So “Ohio Bank” is good. “Ohio Banking,” not as good?
Shane: Not as good.
Michael: A company might actually call themselves “Ohio Bank.”
Shane: Yeah, exactly. So I just don’t see any use for those kind of names. And there’s a lot of things like that on there. American Neurologist…
Michael: What’s one more that stands out that just isn’t quite right?
Shane: Just not quite there. Again, you’ve got…all the way through, “Mexican Surgeon,” that’s not generally thought of as something you brag about or your targeting. I don’t like these names. I don’t think that they’re great names. There’s no sale. I don’t see much…NameBio, as we keep checking, I don’t see much history there.
There’s a couple that I did like. I thought “New York Income” was a good one because there’s a lot of money in finance.
Monte: It’s “NY Income.”
Michael: Right. “NY Income.”
Monte: It’s “NY Income.”
Michael: You think it’s good from what perspective, Shane?
Shane: From the New York, N-Y, New York Income. That’s what I meant, is it’s standing for “New York.”
Michael: Why did you think that was a good domain name?
Shane: Well, I just think that there’s a lot of banking and finance in New York. That’s a city…I guess that’s more a state, you’d want to throw a “C” in there. But in general, I think it’s a name that you may have potential buyers out of all of these, the most potential buyers. Not a huge name, but there’s probably an ability to sell it to someone that uses that name. Again, I didn’t Google it. I probably should have to see if that’s an upgrade name. Because we know upgrade is where the money’s at. We just talked about it in the earlier segment.
Michael: Exactly. Just like CPL, right.
Shane: Exactly. So SEO Convention…is it going to be called “SEO Con” or something like that? But I’m sure there’s SEO conventions around and it may sell…I don’t see huge value in it as well. And that’s really it. I mean…
Michael: All right. Give me a couple retail prices.
Shane: There’s not a lot of value.
Michael: If you owned NYIncome.com, what would you price it at?
Shane: I’d probably put it at $8,000 to $10,000. Now, do I think it’s really worth that? Wholesale markets, probably none. But I think it would be worth that to someone in the financial markets in New York. There’s billions and billions of dollars. And if that’s going to be a name that they can use, yeah, I’d still put it at $8,000 to $10,000.
Michael: Okay. What about SEOConvention.com. What would you retail price that at?
Shane: Yeah. I’d put it at a couple thousand dollars. I don’t really generally try and sell anything other than the names we talked about, the fund names, for under $2,500. If it’s not worth $2,500, it’s not worth anything, honestly.
Michael: Yeah. And one point that you made is that if you tried to list these on NameJet, for example, the wholesale value is probably going to be one bid.
Shane: Yeah. You would struggle with a $69 bid on 99% of these names. It’s just…a couple of these names are fine. I’ve had, in recent years, success with Florida Home Loans and Florida banking names in other cities. In general, geo is getting a little tougher unless it really defines that user’s marketplace. When you get real broad…Drew’s going to know more because he’s going to have some good sales history. But in general, geo is getting tougher and tougher [inaudible 00:30:48].
Michael: All right, thanks, Shane. Monte, let’s go over to you. What do you think about the list, and are there any domains that stand out that would be long-term holds for David?
Monte: I completely agree with Shane on this, and I own a number of these geo with the word “dentist” or “lawyer,” or whatever, and they don’t sell that well. So the best matchup, getting down to Shane’s point, is “BoulderAccountant” is probably the better one on the list if you get very geo-targeted to a city and what an accountant would do. But we all know that they’re probably not going to pay that much money for those names.
Michael: Yeah. What would you price BoulderAccountant.com at if you owned it?
Monte: It would be $1,500 or something. But believe it or not, the best name I like on the list is NursesAideJobs because it’s actually a category. It has 11 paid ads on Google. It’s a category. There’s thousands and millions of nurse’s aides out there. Even though it’s not a high-paying job, it’s a direct keyword job-related domain name. So I think that’s the better name on the list of all of them.
I don’t know what you’d do with ColoradoGovernor. I don’t know how you monetize that or who you would even sell that to. I don’t think that the governor would even buy that. Or SouthDakotaPolice.com, I don’t know what you would do with that.
But I think the best name on the list for me would be NursesAideJobs.com, because it’s a definite category and a place where people might be looking for a job, and would naturally type that name in right off the bat.
Michael: Definitely. And if you owned, in your portfolio, Monte, NursesAideJobs.com, what would you price that one at?
Monte: Again, it wouldn’t be that much, but probably $2,500.
Michael: Okay. And then if you got an offer for $1,000, you’d probably negotiate?
Michael: Okay. Awesome. Thanks, Monte. Drew, let’s go over to you. You’re the cleanup batter here. What didn’t get said about this portfolio? What domains did they pass over? What additional advice would you have for David?
Drew: Yeah, I don’t like the portfolio. I think that David needs to regroup.
Drew: I would…yeah, pivot. Look, I think BoulderAccountant…again, pick up your Yellow Pages, or go to Boulder Yellow Pages. If you called 20 accountants in Boulder…which happens to be a place with a lot of new accountants by the way because of the…
Drew:…booming cannabis industry. You will find an accountant that will pay you $1,000 to $5,000 for BoulderAccountant.com. So that’s not one you’re going to let expire. But the rest of it, I don’t see anything.
Michael: All right, let me ask you…
Drew: NursesAideJobs, like what Monte said, decent name.
Shane: Not even MexicanSurgeon?
Drew: None of these really have any search volume except for ColoradoGovernor, but that has no commercial value whatsoever. Yeah, I don’t see anything in here, really, of any particular value. Unless you put in the hustle to earn that value. Yeah, I would just completely regroup.
Michael: So Drew, is it…
Drew: Rethink your strategy.
Michael:…is it fair to say to David that he should keep NursesAideJobs.com, BoulderAccountant.com, maybe NYincome and SEOConvention, and then allow the rest of them to just drop on the renewal?
Michael: And then take that money that he would have paid for renewals and put it in to some other domain names?
Drew: Yeah. I mean, look, most of these geos, there is a buyer out there. It’s just that you have to put in the work.
Monte: Yeah, they’re not going to come to you.
Drew: So do you have a job? If you don’t have a job and you’re starting out in domains, and you’re trying to make some money, then yeah, pick up the phone, call 20 people, sell BoulderAccountant for a couple grand. Then move on and move to…what was it, NewHavenLaw, I think?
Michael: Yeah, that’s a good one.
Drew: NewHavenLaw. Make 20 phone calls to law firms in New Haven. And even in a shithole like New Haven, you will find a lawyer who’s willing to pay you…whatever, $1,000, $2,500. Somebody will pay you.
NewYorkIncome, I’m a little less ambitious about. Yeah, everything else is freaking…let it go.
Michael: Okay, Drew, let me ask you tactically. BoulderAccountant, NewHavenLaw.com, would you send emails to everybody in that town based on lookups? Or would you physically pick up the phone and call them? What would you do?
Drew: I would physically pick up the phone and call them, because…
Michael: And then, what would be a typical script?
Drew: These are professionals, right? These are accountants and lawyers, doctors. These people are very busy. They are not going to take the time to respond to your email. They’re just not. They just don’t give a shit.
Michael: So pretend like I just picked up…
Drew: But if you get them on the phone…
Michael: Pretend like I just picked up the phone, Drew…
Drew:…get them on the phone and you’re like…
Michael:…for NewHavenLaw, what would you say to me?
Monte: “Hey, you live in this shithole called New Haven. You want this domain name?”
Michael: It’s totally being gentrifying.
Drew: “Your city is a shithole, but you do have good pizza. By the way, do you want this —- domain name?”
Michael: All right. Now I need to bleep out “—-.”
Monte: Got to use the bleeper.
Michael: What would you say, Drew? Seriously. Let’s give David a little bit of tactical advice here.
Drew: I would say…you pick up the phone and you call him. Assuming you get the guy on the phone, you’d say, “Look, hi, I’m David. My company is called blah, blah, blah. I own the domain name BoulderAccountant.com. We were thinking about launching a directory on it, but it didn’t work out. And so, we’re looking to sell it, and I thought I’d give a call to a few people in the area and see if you might be interested.” Or whatever, fill in the blank for the domain, right? And he says…
Monte: And email me back at Shane@Iamdumb.com.
Drew: By the way, I would email from a real email address, not like a Gmail or a Hotmail. And then, I would say, “Look…” sorry, again. Forget the email. But if you do email, use a real email. We’re talking about a phone call. So then I’d just be like…he’s going to basically tell you, “Look, I’m not interested. I don’t have time.” And you say, “Look, I didn’t even get to tell you the price. I’m only looking for $1,000 here. $1,000. You get one client off of BoulderAccountant.com, you’re going to get $1,000.” And he’s going to go, “$1,000? I’ll give you $500.” “Yeah, fine. $500. Send me a PayPal, thank you very much,” and move on. That’s how that’s going to go.
Michael: All right. Great advice. Thanks, Drew. Before we jump into the domains going to auction soon, I want to tell you about three of our other sponsors.
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All right, we’re going to move on to the Marketplace list. This segment is sponsored by NameJet. We’ll be reviewing 11 domain names going to auction soon with no-reserve. If you like one of the names below, click through soon because once they go to auction, you lose your chance to put in a minimum bid and even be a part of the auction. Most of the domain names have a minimum bid already. So if you just put in a $69 bid, you’re not going to win it, but then you can watch the results.
The links below go directly to NameJet. They’re not commission lniks, they’re just trackable so NameJet can see what we’re sending them. The list starts with a three-character numeric, 018.com, and ends with a brandable, worldseo.com. For transparency, I always ask the panelists iif any of the domains are owned by them or brokered by them. I don’t think it’s the case. But do any of the domains look familiar to you guys?
Michael: Okay. Again, if you’re watching the show, the video, go down, press “Pause,” and then go look at the domain names. Price the domain names, what you think they’re going to sell for at NameJet. What you think the retail price is going to be later. Pick your top three, your bottom three that you would never invest on, and then hit “Play” and listen to what the Sherpas are saying about it. Don’t just passively listen like in the background while you’re doing some work or something. Actively try and improve your skills by pressing “Pause,” doing a little analysis, and then coming back. It should only take you five minutes.
The order for this segment is going to be Monte, then Drew, then Shane. Monte, let’s start with you. From an investment perspective, from a newer investment perspective, what do you like on the NameJet list and why?
Monte: Well, obviously, the three character, the three number name is a good name to hold regardless, because they’ve been doing well over time, depending on what you can buy it for. It has a decent appraised value.
Harborisland is a definite location geo name, but again, those are tough. There’s one of Drew’s names, jmx.net, which is a decent .net name. But I like more of the…something you can sell with or that attracts buyers to a product or service. So I like nycsolar. Even though it’s geo, there’s a big push in New York City to put solar panels on top of the high-rise buildings now to help save energy costs. Theoutdoors is a cool name, too, because you can offer vacation packages to the outdoors, or camping trips, or a travel site, or camping products and services, those types of things. So I like those names.
Michael: Awesome. And so, what do you think has the highest retail sale price of the ones that you mentioned?
Monte: Well, 018 is going to be the most expensive, I think. Just because of the history of those, that’s probably going to be the most expensive. I think the better buy would be New York Solar.
Michael: Yeah, nycsolar.
Monte: Nycsolar, I’m sorry.
Michael: Yeah. Just like we said in the prior segment, you own some of these, you’re not a fan of them. But you’re looking at the growth of industries, and solar is on an upswing in the United States. And so, that’s why you would…
Monte: Yes. Renewable energy and solar energy is, in general, on a big push. New York City, of course, is our biggest city. And there’s a push by government there to put solar panels on top of buildings, apartment buildings, on the high-rises already. Plus you have all the five boroughs which…people own homes in Brooklyn, in the Bronx, and other places. So I think there’s a market for that, and I like theoutdoors.com, too.
Michael: Yeah, so let me ask you, on nycsolar.com, if you owned that domain name, Monte, what would you price it at retail?
Monte: You know, probably about $10,000.
Michael: Okay. And then, what would you try and acquire it for? What would be the highest you would pay for that?
Michael: All right. And there’s a big gap. Right now…
Monte: It’ll probably sell for less on NameJet, and then theoutdoors, I really like a lot, too. Because you can do a lot of different things with it.
Michael: Yeah, and the current bid on nycsolar was $150 when I sent you these domains. Theoutdoors had a current bid of $89, so it’s barely past the minimum. What would you price theoutdoors.com at if you owned it?
Monte: Probably the $15,000 range.
Michael: Yeah. And go to NameBio and type in “The” and then select “Start with,” and look at the domains that are selling. There’s been a lot in the past.
Monte: Birkins…he was a big “The” buyer. He always liked “T-H-E” and GoDaddy, of course, bought all those. There’s a big market for “The,” and then a name or commercial name, or a category.
Michael: Yeah. What would you go up to if you were buying that domain name? What would you pay for it? Knowing that it had a retail price of maybe $15,000.
Monte: I would go up to $2,500 on that one, too.
Michael: Cool. All right. What’s one domain name that you would definitely not invest in, Monte, on this list?
Monte: I don’t get…even though it’s a four character name, the Lari, L-A-R-I. It could be somebody’s name, I guess. Lovedoc is okay. It’s short for “Love doctor,” I guess, or “Love document.” One of those two, probably.
Michael: Cool, thanks.
Monte: I like jmx.net better.
Michael: Yeah, definitely. Knowing that Drew just spent $1,070 per…let’s go to Drew next. Drew, jmx.net, is that better or worse than, on average, the domains that you just purchased, 18 three-Ls?
Michael: But you like your X. I know you like the three characters that end in X.
Drew: I do. But I don’t like “J.” Unless it starts with an “M.”
Michael: All right. The current bid is $80. You’re going to go in on this one, right? Because it’s a numbers game with your .nets.
Drew: Yeah, okay. But it’s not going to end there. It’s going to end up at jmx…it’s a Chinese premium, it’s going to go for $2,000 to $3,000.
Michael: Yeah. And that’s not the area that you want to play in.
Monte: [inaudible 00:44:26] has it $4,000, for whatever that’s worth.
Drew: Look, I…it’s not necessarily an area I don’t want to play in. I do play in a lot of Chinese names. I don’t know, it’s a .net….no.
Michael: All right, what do you like?
Drew: I see a better arbitrage opportunity in a non-Chinese premium where I can get it for a quarter of that price, a quarter to a half of that price, and my margin is going to be bigger. Ultimately, the end user, right…I’m not going to go on a tirade, because it’s going to go down the rabbit hole, but it’s an interesting thing to think about.
The Chinese are speculating, and so, they’ve driven up the prices on these names. You’ve got a name like jmx.net. It’ll go for…call it $2,500. Eliminate the Chinese market and it would have sold for, probably, $500, $600. Which is more or less…let’s say, within 30%, where the three-letter .net market has been for eight years.
Why is the Chinese market that much more inflated, right? They’re looking at it and they’re going…why do Chinese buyers not want the vowels? Why do they not want the “V”? Because they’re just less common or not used at all, while the “V” is not used at all and the vowels are less common for the beginning of a word in China. Suffice it to say that they expect to have fewer end users with those letters.
And so, what I’m trying to discern from the Chinese market, and this is an ongoing process, is do they actually expect to sell this to an end user? Is that the end game? And I actually don’t think they do. So if that’s the case, where’s the underpinning for their market?
At $500 or $600 or $800 or $1,000 for a three-letter .net, unless you’re buying qzj.net, that name has value. You will find a company, it doesn’t have to be a very big company. A small mom and pop, or medium-sized mom and pop is willing to pay a couple thousand dollars to get the three-letter acronym of their 30-year-old business.
That’s the arena…I love that. I love that. They will come knocking eventually, right? But if I’m paying $2,500, then I really need to get…$5,000 is…because you’ve got to remember, this is a numbers game. So if I’m only selling this for $5,000, that means I need to be selling at least half of everyone that I buy. And that’s the breakeven, right? So I need to sell more than half to make a profit on my investment. That’s just unrealistic. Not within a reasonable time frame.
I think that you need to…if you pay $2,500, you need to expect to sell that for $10,000 or more. And I just don’t see that many three-letter .nets unless it’s a word or a name, or something like that selling for that kind of money. We sold law.net…I don’t remember exactly the price, but a lot of money. A lot of money. Like, $100,000-something a couple of years ago. And obviously, a three-letter .net. But it’s law, right? If it’s a random three-letter acronym, you’ve really got to get lucky to get those super premium prices. So yeah.
Michael: Yeah. What I hear you saying is money is made on the “Buy.” You need the differential between buying and selling price. In the Chinese market, the retail and the wholesale values are compressed. So they’re almost the same value.
Michael: So you’re looking for buying Western. You’re buying the letters that companies all around the world are going to want to use, and you want to buy them low and then sell them for $5,000-something and get that spread. Totally get it.
Michael: What else do you like on the list, Drew? What’s good for a newer investor?
Drew: For a newer investor? This is a pretty good list. There’s not a lot of names on here. Like, the names that I really like are going to go for decent money.
Michael: Like what?
Drew: Well, I really like lovedoc. I like lovedoc a lot.
Michael: Why do you like that one?
Drew: Because the whole area of coaching, life coaching, is big. It’s growing like crazy. I could easily see that being a really good brand for a romance coach or how to be…what do they call it? There’s these seminars that…
Shane: Make a better lover?
Drew:…lots of men go to to be a better…like, “How to pick up women,” right?
Michael: Yeah. The whole pickup artist scene was big a couple years ago.
Drew: Pickup artist is fucking huge.
Monte: How to pick them up or just to love them?
Drew: Look, I think lovedoc…everybody knows the Love Doctor. Lovedoc is a great brand for multipurpose…I like that a lot. I like harborisland, although the geos are tough. Obviously, 018.com is a huge name. That’s six figures.
Mobilealerts…okay, if you’re a beginner…even though I’ve been kind of down on the exact match, and I still am, I think mobilealerts is a decent name to pick up. You’re going to pick that up really cheap.
Michael: Well, it’s already at $555…
Drew: And probably under $1,000…
Michael:…what’s really cheap. What do you think is a…
Drew: Okay. I was going to say under $1,000, you pick that up. And mobilealerts, it’s big. It’s funny; we’ve gone through this whole thing of apps and everything this. And in our last show, Richard has a great comment. “I sign up for every service, and I don’t want to install a new app. I just want to get a goddamn text message. Just send me a text message,” right? “I don’t need a new app with a new communications manager, a new message board. Just send me a freaking text message,” right?
And so, there’s a big movement to that, right? Like, for health and…mostly health. I’m only…whatever. I think mobilealerts is good. I think you will find a large pool of buyers. I think that it’s a still hot and growing market. And so, it’s not something you’re going to get left in the dust. You pick it up for relatively low. I’d like to see it under $1,000. But you could probably survive paying up to $2,000.
Michael: What do you think the retail value is, if you held it for a few years?
Drew: $5,000 to $10,000. Maybe $15,000.
Michael: Sounds good. What’s one more domain name that you like that you think is a good investment opportunity?
Drew: Veganmarket. I hate to even go there, but it is. That’s a good name. Of all the vegan names that you talk about, veganmarket is just…it makes sense. I actually just went on the weekend to a vegan farmers market that my wife dragged me to. It’s a real thing, it makes sense, it’s commercial, there is a market there.
Drew: You’ll find a hipster to give you $10,000 to $25,000 for veganmarket someday.
Michael: $10,000 to $25,000 you think is the retail price?
Drew: I think some hipster in Brooklyn will pay you $25,000 for veganmarket, yeah.
Michael: Wow, all right.
Drew: $15,000 to $25,000. $15,000 to $25,000. But I’m not going to buy it, but…let’s say under $1,000, I would buy it. But I don’t think it’ll go higher than that.
Michael: All right.
Monte: Drew, what do you think about all the competitive names, though, for your lovedoc? It could be lovemd. It could be lovedr. It could be lovedoctor.
Michael: Yeah, good point.
Drew: So I liked…
Monte: That was my concern when I saw lovedoc because I like it, too. But then I was like, “Oh, it could be md, it could be doctor, it could be D-R.”
Drew: In general, I don’t like names that have a lot of alternatives, because that always drives down your value, and that probably does drive down the value to some degree here. But two things. Number one is I think all the good alternatives are going to be taken and expensive. Secondly, I think lovedoc is the best of the alternatives with the exception of lovedoctor. Because “lovedr” is “lovedr.” It’s not “love doctor.” It’s not “love doc.” Lovemd is kind of nice. I kind of like lovemd. But it’s still not as good as lovedoc.
And lovedoctor, I’m sure, would be a lot of money. So I think you’re pretty well-protected. But certainly, it would be good to know, at least, what those alternatives are for sale for, if they’re for sale at all.
Michael: Yeah, definitely something to investigate before you go in on the auction for lovedoc.com. Thanks, Drew. Shane, let’s go to you. Veganmarket.com.
Shane: I think these went up in value during that conversation.
Michael: Do you agree with Drew that you think a good retail asking price is $10,000 to $25,000?
Shane: Yeah. I had the hipster from San Francisco given the price, not the Brooklyn guy.
Shane: Yeah. I think the West Coast has more money for it. That’s one month’s rent in San Francisco.
Michael: That is true.
Shane: I knew you were baiting me with those names.
Michael: I’m totally baiting you. Anytime “vegan” comes up…
Shane: I get emails all the time.
Michael: And there were two more that were no-reserve that I didn’t put on the list. People are selling these vegan domains now, primarily because you’re like them.
Shane: I liked to think we singlehandedly made the market with these names, just our show. But yeah…you can’t deny veganmarket. I can see the sign and I can see all the Subarus in the parking lot going inside to go pick up their bean burger.
No, that’s an absolute true…we make fun of it, but it’s a big market. You put a CrossFit store across the way and you are set, and all the hipsters.
Michael: So what would you…
Monte: And a dispensary.
Michael: Yeah, a dispensary, too.
Shane: The dispensary.
Michael: What would be your maximum? Would you actually invest in veganmarket.com, Shane?
Shane: Oh, absolutely. I’d take veganmarket for under $1,500?
Michael: You would?
Shane: Absolutely. Oh, yeah. Yeah, I’ll be a bidder. I do look at the vegan names. Just because we make fun doesn’t mean there’s not money to be made in it.
Michael: Which is better, thevegans.com or veganmarket.com.
Shane: Veganmarket, easy. Not even close.
Michael: Because why?
Shane: “Vegans” is going to be for make fun of them. “Market” is going to be for me to sell of them.
Michael: Because it’s more commercial? Got it.
Shane: Yeah, more commercial.
Michael: All right. And what else do you like on the list, Shane?
Shane: Just on the Lari one, the CVCV market is huge. I was a big player in it a couple of years ago and I found that the wholesale market is big. The buying and selling, they’re going for $2,000 to $10,000 to $15,000 regardless of letters. But the end users, I’ve never had good success. And I think Francois of domaining.com will tell you the same thing. He owns a fantastic portfolio of CVCV, and he’s never had great luck, either, from our conversations.
But that doesn’t mean it’s not coming and it’s not being used. But in general, the wholesale market, like the Chinese market on the CVCV, seems to be better than the end user. But they do go for…that name, that’ll go for $3,000, probably, just regardless of what it’s going to be used for, just because it’s a consonant-vowel.
Michael: You think it’ll go for $3,000 on NameJet? Yeah.
Shane: Yeah. And I think the NameJet market is the market for those. End users, not a ton of information out there. But there’s a great trading market. And that’s how we make a lot of money, is buying and selling to people that think they can do better.
Michael: Yeah. So in that one, your margins might be compressed. If you have to put $3,000 in, you might be able to flip it quickly for $3,500. But that’s a lot of money to invest and it’s going to be tied in, it’s going to be a lower margin than your typical buy it low and sell it to the end user.
Shane: Drew had a good word for it. I forgot what word Drew came up with it, but the game of having somebody else think they’re better at domaining than you can get more money for your name than you did is really good. You’ve got to have somebody thinking they’re smarter than you. And maybe they are. Because if I give Drew a name, he does generally sell it for more.
But in general, they’re going to find out the same thing we did. I’ve owned it for two years, nobody really did much. Of course, some of it’s lucky timing. There’s those things where I take a name for you you’ve sat on for two years and I get a $10,000 offer the next day. But in general, that’s what that markets tends to be, the CVCV. Somebody says, “Hey, it’s going up,” or they’re just playing somebody else.
Michael: Right. Good info.
Shane: But it does have value. The one that I did love and I really wish it wasn’t on here was nycsolar. I’m a big, big solar guy. I’m not saying that everybody should have solar. But the cost of solar is getting so cheap that it’s a legitimate market. And Tesla, Elon Musk is going to make a lot of people a lot of money with his ideas. He’s an incredible man. And it is going to be a fact that there will be solar panels on the top of our car and our roofs are going to be made of solar panels. And everything is going to be taking in energy. And you want to own names with the word “solar” in it.
I bought islandsolar…if you go to Hawaii, everything is solar, every island. And I thought “islandsolar” is perfect. NYC, same thing. Every city, I do think that’s a very, very good market right now, the solar market. It’s becoming so cheap so quickly that people are not doing it not because they don’t believe in it, but because it’s getting so cheap, they don’t want to invest now. Because tomorrow, it’s so much cheaper, and it’s forcing solar companies to say, “I’m just going to give it to you and I’m going to make money on the ‘buy,’ and you’re just going to rent it from me.”
So…to keep people from waiting. It’s a huge, huge market.
Michael: Those solar tiles that Elon Musk is coming out, they like terra cotta tiles for your roof, and they bring in the power, and then they store it inside your house. It’s going to be phenomenal.
Shane: Yeah, it’s just going to change everything. Right now, you’re selling it back to the electrical company. And eventually, the electrical company is going to say, “Hey, hey, there’s too many people sending it back. We’re not buying it from you.” But Elon says, “You know what? I’m just going to make you a battery pack. You can store it all in your house…”
Shane: “…and you don’t even need electrical. If they don’t want to play with you, then don’t use them at all.” And then, all it will be left for is emergency power in case all that goes to hell. And that’s the only job the electrical company…
Michael: Hey, Shane, you said you owned islandsolar.com. Have you received any offers on that?
Shane: I’ve received some offers of exactly…I think I paid $1,500 for it, and I’ve received several $1,500…and the funny thing is they’ve all come in the same. But I think it’s a great upgrade name for a couple of places, and I just think…and there’s a lot of islands. The island isn’t just Hawaii. There’s plenty of islands…
Michael: I live on an island, yeah.
Shane: An island is where you really need your solar.
Michael: Totally. All right, what’s one more domain name that you like that newer investors might find benefit from investing in?
Shane: I was trying to look at… Harbor Island is not even a real island. That’s manmade. I’m going to not even…
Michael: It’s manmade. It’s in Seattle. I think it’s got three residents. It was the largest manmade island in the world until China built theirs and another country built theirs. Yeah, it’s all commercial.
Shane: Yeah. Dubai, everything is bigger in Dubai now. Theoutdoors was the very first one that I came to. I think it’s a great name. It’s a solid name. And I do like “The” names. And I know a lot of names that haven’t hit public information of major words; “The bathroom,” “The kitchen,” things like that that do very, very well. So I think…I’d almost rather have thegreatoutdoors, sometimes, because a lot of people refer to it as “The Great Outdoors.”
But theoutdoors is…you know my feeling. That’s where everybody should be.
Michael: Hey, Shane, Monte said that he would go maximum $2,500 to buy it, and then it probably has a retail price of $15,000. What’s your feeling on those?
Shane: Yeah, I wrote down $10,000. I think that’s what he said. Because I wrote down $10,000 right on my piece of paper. Yeah, $2,500 is a good number for that.
Michael: So you would go up to 25% of the retail value? Even though you know you’re going to have to hold it for five, ten years in order to get that sale?
Shane: Yeah, I’m a four to five…I’m right there with Drew. I’m a four to five times. You kind of have to if you’re going to do this. And I like the way Richard put it, too. You’re holding a name to make sure that it’s available for sale. You’ve done everybody a favor by holding that name. So I love the way he put that. It sounded like we’re doing the industry a favor by buying these names…
Michael: We’re doing the world a favor.
Shane:…but four to five is…the world a favor. Because it could be going to someone besides you, and I’ve done this favor for…
Drew: I was really glad to hear Richard say that. Because that’s what I tell people every day. “What do you mean [inaudible 00:01:022]? I’ve been doing you a damn favor holding this thing for you. I can [inaudible 01:02:27] to any schmuck.”
Monte: They didn’t used to say that in the ’90s, though, when we took all the names and held them for everybody as a favor.
Shane: It’s a service that we’ve all done here. I’m sure lots of people would love to hear that out of our mouth.
Michael: Yeah, exactly.
Shane: But in general, those are great names. There’s not too many bad names on there. 018, I thought maybe it was an “O” instead of a “0.” Is it really no-reserve, met reserve?
Michael: It is really no-reserve, and it was currently priced at $777, but clearly, it’s going to go higher than that.
Shane: Yeah. That’s the one that we’d all like to own, but nobody really wants to pay $147,000 or whatever it’s going to go for. That’s probably low. But yeah, good names. This is one of your better lists.
Michael: Thanks, Shane. We’re at the end of today’s show. I’d like to give the Sherpas an opportunity to share anything that they want about domain names that they’re brokering, selling, deals they have coming up, auctions that they’re organizing? Any one they want to give a shout-out to? Let’s start with you, Monte. Because the NameJet auction…the NameJet Right of the Dot auction is coming up at NamesCon. I love live auctions. I always sit next to Drew because he’s a market maker. I never know if maybe he’s going to throw me a bone and say, “Hey, Mike, let’s go in on this domain name together,” or something. Always a great auction. What can we expect this year?
Monte: Well, another good, exciting event. I’m staying away, for the most part. Not “staying away.” But last year, we had a number of two-letter domain names that were really geared towards the Chinese market. And as you know, that market fell right before the auction last year. So there was, like, 18 names that were targeted towards the Chinese market. We still sold over $2.5 million of the domain names last year at the auction.
But this year, I’m focusing a lot on keywords. In .com, really good keyword .com names. And also, some new TLDs, obviously. We’re giving a chance for some of the keyword TLDs to take shape again. So about 30% of the list will be new TLDs with keywords behind them, and then 70% or so will be really good .com names.
If you see on NameJet right now under the NamesCon tab, the ones that are at the highest bids are…I have this great package which has never been available before. It’s the original owner, which includes bar.com, bar.net, cafes.com, grill.com, place.com, pub.com, and shelter.com. All is an entire package. So it already has a $1 million bid on it. It needs to go higher, obviously, to sell those, because each one of those names you could argue, except for the .net name, probably are seven-figure names, which is pretty good.
And then, there’s stop.com in the auction, leads.com, solitaire.com, toxic.com. Some that I just recently added is keyword.com, which is a kick-ass name as well. We have a couple of first names like patty.com, and there’s single.com. Just added wineclub.com. And as everybody knows, I sold wine.club two years ago for $140,000. So wineclub.com is in the auction now as well.
Then we have some really good .tv names like 89.tv, rn.tv, dv.tv. They’ve all met reserve already. Just some really good names. And I have just added ol.com to the auction. It’ll be uploaded today or tomorrow. And it already had a bidder at $810,000 on NameJet I guess a few months back. And I got it for less than that on the reserve…
Michael: That’s awesome.
Monte:…so it’s probably going to sell. As last year, the live auction is on the first day, the first full day, which is Monday, the 23rd, at 3:00. The champion auctioneer, Wayne Wheat [SP] will be with me again, and NameJet is all the pre-bidding online right now. And we’ll do the extended auction for ten days following the event on NameJet.com. So we’re really excited about the auction this year and focusing on these keywords.
And if anybody doesn’t know, NamesCon…the estimate is there’s going to be 1,400 people there this year. So 300 or 400 more people than last year. The room should be packed, the action should be good. Excited about it.
Michael: Yeah. Any domains that don’t go to the live auction will still run in the Right of the Dot NameJet auction, and people can bid on those, right?
Monte: Yeah. But here’s what we’re doing this year. I’m allowing names to be in pre-bidding. And then of course, the pre-bid activity and action dictates to me a little bit about what I’m going to put in the live auction versus the online auction.
I’m going to actually rotate names out that aren’t getting interest this year. I have some registry names that just aren’t getting any action that I thought would, and if they’re not, I’m going to take them out of pre-bidding, and then put some other names that I think might make sense.
Michael: See, but that’s tough. I really liked, and I’m kicking myself for not buying i.ski at last year’s auction. Morgan picked it up for $2,500. I thought it was a great steal. But I wouldn’t put a bid in before the auction because I don’t want to show my hand. It’s sort of like sniping at the end of an auction, an online auction. But you’re saying that if it isn’t getting action, it’s not going to go to the live auction?
Monte: Yeah. Well…unless it’s a dead-on word that I know is going to get action at the live auction. But here’s an example, there’s 77.click in there. The two sevens on a .com or on other extensions would do, generally, pretty good. But .click is not getting anything. Now, I don’t think there’s people waiting to put a bid on it. Those are the names I’m talking about.
Some names have higher reserves, but a lot of names are low-reserve names. That’s what I’m encouraging, that names be submitted, super-premium names at no and low-reserve so that bidding, competition, and outside forces take over. And then all of a sudden, we have a true market happening in the room versus some kind of inflated artificial market.
Because there’s going to be 500 people in the room with paddles in the air and a couple hundred people online, I can say and stand behind that we have a true market. We’re making a market. It’s not an artificial market, it’s not inflated. It’s really true market. And as I explained before we started the show, in the last two years, 48% of the buys have been by end users. Which is great at a domain conference.
Michael: I never would have expected that. Almost 50% of all the sales went to end users, not investors. Wow.
Monte: End users. Not investors. Investors now inflate the bids a bit, but I have end users sitting there waiting and putting bids in either by agents or themselves, too.
Drew: Is that in terms of number of sales or total dollars?
Monte: No, number of sales.
Drew: Wow, that’s big. That’s a lot.
Monte: Yeah, it is big. And that means there’s a good opportunity for name investors to buy your names at good prices, and there’s a market for end users. So I think that balance is really good for this conference. I think it’s good for the industry. And I also…I could put all .coms in there and make a lot more money for everybody, including ourselves. But I think putting…still concentrating on new TLDs helps with the newest investors and the new market that’s about to come three to five years from now, so that’s why I’m doing that as well.
Michael: Monte, let me ask you. Because I’m looking around the conference, I’m trying to meet as many people as I can. They’re mostly investors, registrars, registries, service providers. How are you getting so many end users to show up for the auction?
Monte: Well, there were a couple in the room last year, but most of them are online.
Michael: Are you looking at domain names that come up and then doing outreach to try and get them to bid? You do?
Monte: Yes, and if they’re not going to bid, they’ll have an agent bid. Two years ago, here’s a good example. Two years ago, we sold homecare.com. I don’t know if anybody remembers that. It happened right before the auction. They paid a premium to pull it out of the auction. They didn’t want to participate in the auction, so we’ll do that as well.
It counts as an auction sale, all the partners got paid for it. But they said, “Hey, we’re going to place this bid $25,000 over your reserve. You pull it out.” Of course, the seller has to agree to that. But I thought that was a good move. It sold for $350,000 two years ago.
Michael: So if I want to put in domain or domains, submit them to you for review, is it too late to do that? Or do I still have time to do that? And up until when?
Monte: There’s still time to do it, although I’m only accepting super-premium names right now at good prices.
Michael: What does a super-premium look like, and what kind of price?
Monte: I’m obviously getting slammed with thousands of submissions. A lot of names aren’t appropriate for this auction, but it takes a lot of time and energy to get through all this stuff. I’m doing all it all myself this year.
Michael: Yeah. So what does a super-premium look like? What kind of domains are you looking for? Things like you just mentioned, like keywords.com?
Monte: Brandable, keyword, dictionary term, high ad placement, Google ad placement words. Generally, one word or two words that make sense. Action words, retail words. Trending words, both in new and the Urban Dictionary-type stuff. That kind of stuff.
Michael: Like, you wouldn’t take a veganmarket.com, for example? Because there may not be enough…
Monte: At this point, probably not, you know? I have a lot of words in our “maybe” category. So one thing that NameJet is really good at is they have, of course, any name that is in the auction, there is a whole back order list of people that put back orders on them. So the names of those back orders, obviously, I’m going to put in. Because that gives more potential to sell something in that category.
I have a bunch of names in my “maybe” category; I just got the data from NameJet. And there’s five or six names with a lot of back order activity. So they’re going to have high chances of selling. Like, proctologists…one name, as an example, is proctologist.com. Proctologist is not a practice anymore, but is still…it’s a marker of the past.
Shane: Hold on. That guy wasn’t legit?
Monte: It’s Andrew’s favorite type of doctor, so that’s why I think I’m going to put him, because I think he’s going to be a good buyer for it.
Michael: And it’s not just keywords you’re looking at. You just mentioned toxic.com, which…
Shane: Hold on. I’ve got to take a phone call.
Michael: Yeah, you’re going to go and take care of that? Terribly negative word, but a phenomenal brand, right? Like, clothing, records, whatever.
Monte: Yes. Or it could be so intoxicating that it’s good. So “toxic,” I think, actually, can be spun to be a good word, if you think about it. Like, love is toxic, right, you know?
Michael: Super-premium, just one more question that people are probably wondering. What’s your commission on domains that do get accepted, that sell at the auction?
Monte: Well, the commission is the same as it is every year. It’s a 25% commission added on top of your net reserve. But then we have to split that commission between NameJet, NamesCon, Auctioneer. So we don’t end up with that. We end up with less than half of that.
But there’s a lot of cost because of that partnership payment stuff. And then we’re a premium sponsor of the event, we’re paying for food and beverage. It takes a lot of money to make money, you know?
Michael: Makes sense.
Monte: If you compare it to Christie’s or Sotheby’s who charge 45%, I think it’s a good point.
Michael: All right, can’t wait for the auction, Monte. It’s always exciting. I always get those butterflies in my stomach when I think about holding up my paddle. And it’s fun.
Monte: You want to see my butterflies?
Michael: You look like a pro up there.
Monte: They’re bats. They’re bats, not butterflies.
Michael: You’ve got Wayne doing the auction, Wayne’s always great. So if you haven’t been to an auction, definitely show up for the Right of the Dot NameJet auction that’s going to take place at NamesCon. You do not want to miss it.
Drew, let’s go over to you. Anything you want to mention, promote, give a shout-out to?
Drew: We have some great auctions running on NameJet right now. Parent.com, author.com, lots of other names.
Michael: Great domains.
Drew: Go to our banner on NameJet and click and bid away. That’s it.
Michael: Cool. And your eBook is doing really well. If people haven’t gotten that eBook, they need to download that.
Drew: Yeah, we’ve got over 1,000 downloads. We’ve got over 1,000 downloads already, and we really haven’t even marketed it except domain.com.
Michael: Yeah, great eBook that they should read. I think it’s at mediaoptions.com. I think you can also go to chriszuiker.com, Z-U-I-K-E-R.com and get it there.
Drew: Yeah. Mediaoptions.com, and then under the resources, we’ve got the eBook.
Michael: Awesome. Thanks, Drew. Shane, let’s go over to you.
Shane: Yeah, just kind of the same old thing, D-S-A-D.com. List our daily list every day and then we recap it. That’s an important part of what we do is knowing what names sell for at auction. You can go to NameBuy and search it. But every day, we take the lists that we pick and then we say exactly what it sold for. So you can kind of guess what you think it’s going to sell for, kind of what we do here, and then come at the end of the day and see what it really sold for.
Our auction went well, too, and like the rest of these guys, I’m going to let them do their thing. In the new year, we’re going to start our next auction. We’ve got it down pretty well. But there’s a lot going on as far as auctions, so we’re going to hold back and let Christmas go through and the new year go through, and do the things.
We get the crumbs of these other auctions, but as long as they sell, it doesn’t matter the price. I’ve got to wait; there’s a lot going on. And I’m really excited about NamesCon as well and the auction. So we’re going to just take it easy. We had a great year and kind of [inaudible 01:16:10].
Michael: Yeah, I don’t co-own any domains with you, Shane. Maybe we need to go in on a couple of names this year at the auction.
Shane: Yeah. We almost went through…
Monte: I have an Iamdumb.com. That’s a pretty good name we can go in on.
Shane: There you go. Put it in the auction. It’ll get at least $70. Some of the blog posts I’ve seen, they’ll buy it for me and give it right back to me.
Michael: Awesome. All right. A lot of the stuff that we talked about on the show is in dnacademy.com. If you’re watching this and you’re like, “I need to just go through the fundamentals and learn it from the ground up, go to dnacademy.com, type in “SHERPAFAN” when you’re signing up, you can get a $50 off the tuition.
If you received benefit from today’s show, please post a comment below and thank today’s Sherpas, or click that tweet button. Really easy to do. These guys, yes, it’s great that David made a donation to cancer research. These guys are supporting cancer research by doing that. They’re giving their time. It’s the least that we can do to say thanks to these guys for their time and all their experience.
I want to thank David Fry for submitting his portfolio and making a generous donation to the Fred Hutchinson Cancer Research Center. I want to thank NameJet for submitting their portfolio and sponsoring that segment of the Domain Sherpa Review. And I want to thank our Sherpas again. Andrew Rosener, Monte Cahn, and Shane Cultra for sharing their experience and insights. We’ll see you all next time.
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