Monday, February 26, 2007

Unbelievable 750% ROI on Flipped Domain

I have been using the skills I learned in Domain Profiteer to search out domain investments. I have purchased several domains which are currently parked at Sedo. Some are doing pretty good and others are lacking in their effectiveness. I want to go through some of these in more detail, but I have more important news….

I sold my first domain for a profit of $130!

I found the domain in the GoDaddy auctions and purchased it for $20 and then parked it at Sedo. It didn’t do as well on Sedo as I was hoping. GoDaddy estimated that I would receive about 70 visitors a month on the domain, but I was only getting about 30 visitors a month. And of those 30 visitors I only made a total of $0.38 from domain parking in one month. It was pretty sad and it didn’t look like I would get back my $20 investment any time soon.

Then I was contacted by a web developer. It turns out that I had purchased a domain that once belonged to someone else and the original owner wanted the domain back. He was willing to pay me for the trouble and based on the value of the domain we negotiated $150. $150 minus the $20 leaves a $130 profit, 750% return on investment.

I don’t think 750% is bad for a 2 month minimal effort. Now I have some more money to search for other domains.

2 comments:

Sam said...

Yep, domain parking and trading is a gold mine, although it is getting more difficult than when I started 2 years ago.

BTW, try Domain Sponsor instead of Sedo. It does pay much better.

Mike Potter said...

Thanks Sam, I will take a look at Domain Sponsor