In part 1 of this case study, I shared some initial impressions about my “I should try brokering domains at a 5% commission through my newsletter” (longest name ever?) experiment. Today, after crunching some numbers, I can say that financially, the results have been ok-ish.

I made mid 3 figs, $175 through a newsletter sponsorship and the rest through commissions.

Will I buy an island and retire with this money?

Not exactly.

However, it does prove that there’s money to be made. Sellers are pretty excited about the fact that my commission is only 5%, three times lower than the industry standard. For a reseller market venue, this is a bit of a game changer.

Let’s assume you want to sell a LLL dot com, a highly liquid domain for which it’s relatively easy to determine what the market price is at a certain point in time. Therefore, it’s quite unlikely that you’ll be able to obtain a lot more at one “domainer to domainer” venue than another.

Let’s assume the domain would fetch $20,000 through my newsletter. My commission would be $1,000 (5% of $20,000) and you’d keep $19,000.

Now let’s assume another broker could fetch $22,000 for that domain (although I doubt it) but charges 15%. The commission would amount to $3,300 (15% of $22,000) and you’d keep $18,700.

Even in the fortunate scenario in which he’d fetch $2,000 more for the LLL dot com in question (which I doubt happens frequently for highly liquid domains), you’d still be left with less money in your pocket.

Now again, do keep in mind that I’m comparing apples to apples: one reseller market sales venue vs. another.

Some brokers contact end users for example and can generate higher sales, they definitely deserve a higher commission for that.

However, for a reseller market venue, 5% is enough in my opinion.

I will run another newsletter on Monday and keep you posted, that’s it for today.

If you want to sponsor the newsletter (this would cost $175 and you’d receive a message at the beginning of the newsletter and one at the end) or submit domains for consideration (only investment grade inventory priced to sell please), shoot me an email at admin@domainingtips.com and I’ll see what I can do.