Categorized | Domaining Tips

What About Domains With Almost No End User Potential?

Posted on 23 February 2019 by Andrei

The ideal scenario when it comes to domaining has always been acquiring good domains at low prices and selling them to end users. But as time passed, while many still hope to sell to end users, you’re left scratching your head if you were to analyze their business models.

Why?

Because two categories of domains stand out:

On the one hand, you have domains that don’t have end user potential because… well, because end users don’t want them. Or, to put things differently, there’s just no pool of potential end users for them.

A good example would be the overwhelming majority of LLLLL.com domains (five letters)… let’s be honest, the abbreviation potential is just not there and the likelihood of an end user contacting you about one is slim to none.

Even when it comes to LLL.coms, I distinctly recall a conversation I had back in the day with someone who had lots of LLL.coms for an extended period of time (with letters that were considered non-premium by Western standards but many of which would be considered premium by Chinese standards nowadays)… let’s just say end users weren’t assaulting him with offers 🙂

So, yeah… even for a lot of stellar names like LLL.coms, the end user game is not as easy as it seems, so if you were thinking about buying LLLLL.coms… don’t. At least not if your intention is selling to end users (but more on that a little later).

The second category is represented by domains that do have a decent pool of end users but have a reseller market value that’s more optimistic than the real end user potential. I’m referring to domains that are just so darn expensive these days compared to how much you could realistically sell them for to an end user that the numbers just don’t make sense.

For example (albeit an extreme one), any kid with a lemonade stand would love to own LemonadeStand.com but he just wouldn’t be able to pay all that much for it. In contrast, LemonadeStand.com could be auctioned at any half-decent domaining venue with no reserve and would most likely fetch a pretty penny. This would be an extreme example of a situation where there’s a disconnect between reseller market valuations and what end users can realistically afford to pay.

Oh and yes, I realize LemonadeStand.com could also be used as a great brandable domain, so let’s just leave that aside… I’m sure you get the point 🙂

What I’m trying to say is that domaining is a much more mature industry nowadays. This inevitably leads to low-hanging fruit being harder and harder to come by, it’s just the way it is.

Today, I brought two types of domains to your attention for which business models that revolve around end user sales don’t make any sense: domains that just don’t have enough potential end users on the one hand and overpriced domains on the other.

When it comes to both of these categories, it’s not impossible to make money. For example, your business model can revolve around flipping them on the reseller market or something along those lines. But the absence of any meaningful end user potential is, even in such cases, something that adds another layer of risk to the equation… so be sure to at least acknowledge its existence!

0 Comments For This Post

1 Trackbacks For This Post

  1. What About Domains With Almost No End User Potential? | DN Egg Says:

    […] Read Full Article… […]