Hardest thing for a domainer - renew or drop?

[Onward]

I rarely drop a name I have regged or purchased...but when I do...it is really hard for me. I really hate when my dropped name gets scooped up right away...

Most of my domains are future business projects so the ppc is a bonus...

The names I drop are the "what was I thinking" names that receive no ppc...it happens.

 

[Busynic]

Generally I look at the aggregate value of the portfolio and so long as it is increasing in value each year, I only drop the real dogs (stuff I bought after one too many beers, and really can't remember the reason I bought it in the first place). Typically projecting and looking out to longer than 5 years at the moment (in some cases 10) for returns on the “base” portfolio (excludes premium names).

Whilst renewing several thousand domains is a pain in the back pocket, there is every likelihood (or perhaps hope and wishful thinking) that the escalation of value in the top 15% of the portfolio outweighs the average performers and the holding costs.

So 15% are great, 15% are dogs - and 70% were a good decision for one reason or another and with a few years under their belt will fetch at least the registration fee for each year held, and at worst may still be worth more than “a day one name.”

Point me in the direction of generic names (not web 2.0 made up stuff – although there is a market for that as well) with upside potential and over 4 years old, which sell for 30 bucks............. (if I’m looking in the wrong area, perhaps a change in strategy is in order).

In the meantime it gives a pool of potential development opportunities and incremental revenue possibilities simply because you own something that you thought was OK at one point.

Nothing new or revolutionary in the above, and not for everyone – simply another way to slice the salami, and a penny worth of thoughts.

Thought it was an excellent question by the way – helps to stop and think about why we make the decisions we do.

 

[hugegrowth]

I develop some and park the rest. The only ones I let drop now are if I was overzealous on the potential of the name, and it isn't making any revenue. Sometimes you get caught up in a new fad or term when regging, or think you have a highly searched term, only to find out different. Also, if you have a domain up for renewal that has proven to be so-so, and you know of better names you can reg now, it's easier to drop the old one and buy the new one.

 

[Raider]

I remember having a domain (L)scan.com, it was one of my worst performing domains, I held onto to it for 3 years and never received an inquiry for it, so I set the domain NOT to renew and was going to let it drop, 1 week before expiration, I received an email from someone asking to buy it, I managed to sell it to him for $1500, no kidding!

If I took the time to research the other TLD's for this domain, I would of found that the buyer had a active web site using another TLD. If you come up empty on your research on a domain that has no traffic, ask yourself and others if it has any potential to sell, this is where it becomes a judgment call.

The longer your in this business, the better you will get at making that call. :yes:

 

[socalboy]

Adam, I think this is an excellent thread, and very timely. I too find this issue to be one of the most frustrating and time consuming parts of this whole biz. This year, I'm really looking hard, and cutting out whatever I can. And by the way, I currently only park, although I have had offers to develop some of these which I make take up in the future.

There are some important macroeconomic issues to consider. Internet advertising is growing extremely fast in both scope and rates. Thus, if I have a domain with good traffic and revenue that covers the reg fee, I'm keeping it and regging it out a few years. But the key here is good traffic. If it got hit twice a month with a 2 clicks over the course of a year for a few bucks each, I'm dropping it. Which brings me to the next point...

Domain reg fees are rising. Verisign got a 7% annual increase going forward, not just this year. And it looks like the registrars are going to up the rates on the other extensions as well. So holding costs are going to go up. I'm getting rid of low traffic stuff which doesn't have a clear development potential or broad buyer appeal. Even one word dictionary .coms. I look back and they're picked up, which I find frustrating. I guess there are lots of people who think just because it is a dictionary .com it must have value. But if it's the plural negative version of a nebulous root term which never gets searched, I can't see paying 10 years of increasing reg fees just because a buyer might show up one day. Am I wrong?

I still reg new concepts and see if they work, even if the event in mind is a few years out. But I believe the time for holding huge portfolios that aren't producing income is over. I think you're time is much better spent working on fewer, better names.

-SoCalBoy

 

[Theo]

Even one word dictionary .coms. I look back and they're picked up, which I find frustrating. I guess there are lots of people who think just because it is a dictionary .com it must have value.

PM me these names before you drop them, I might buy.

 

[garyrcanuck]

This is a very interesting thread. It appears that all of us have similar outlooks on this topic.

As a suggestion perhaps we could set up a forum/thread just for DN members to list any names that they plan to drop. These names will not be offerred for sale but just listed that they are being dropped.This would benefit other members who would have a use for the name and not being charged extra by registrars.

 

[DomainLobe]

I like that idea Gary - it fosters a sense of community and sharing.
Collectively we are much stronger and effective.
The only problem is the shame I might feel putting some of my questionable regs out in the open rather than letting them slip quietly into the abyss :blush:

 

[domainah]

I think the longer you are in the business the better a handle you will get on if a domain that is not making the reg fee back has any future potential...

..this year I regged about 400-500 names trying a new strategy with regional domains, such as memphisPR.com or wichitanotary.com those kind of domains, all of that level..little traffic is almost guaranteed, but probably not enough to recover the regfee..I will see how many I can sell over the next 12 months or so, if any..and see if it pays off.. so its more a whole category that would have to pay off rather than looking at a domain individually

..another thing I look for before I let a domain drop is if the other TLDs have been taken in the meantime...but in general I have no bad feelings about domains that other people catch on the drop..I don't think anything I let drop would catch more than $100 in a reseller auction..and if somebody makes $40 on it on some ebay auction..good for them...

 

[seeker]

IMO, there are 2 significantly different approaches to this dilema.
1) the PPC approach, if it makes its reg fee keep it
and
2) You concentrate more on its possible sale value rather than traffic and/or PPC revenue.

Although I am for PPC as most people, I keep thousands of domains that may not each on its own make its reg fee back, but I believe they can be sold to end users for more than the PPC revenue would in many many years.
This strategy has worked pretty well for me, although again, the preference may be for high traffic names, end users *usually* do not care as much for the traffic as for the domain itself.