It’s about that time! Another exciting interview with the expert coming at you featuring Daniel Levi. Before we jump right into it, make sure you catch up if you’ve missed any interviews here.
So far, we are extremely happy with the results of these interviews. From the comments to the emails, nearly everyone is finding value in the information these experts are sharing. No matter how “good” you may be in the industry, there is always something to learn from others.
Bruce lee once said, “empty your cup”. That’s what we all should do when listening to others’ advice in business, especially when they have a proven track record of successful sales.
So as I mentioned before, I was able to chat a bit with Daniel Levi. I met Daniel over at the Namepros forum. We chatted for some time through the private message system and he agreed to come on and share some of his tips with us when it comes to domaining.
Sit back, enjoy & take notes.
This is going to be fun…
1. How did you find out about domaining? Was it something you were looking for to make extra money or something you stumbled upon by accident?
The startup world is what got me into domain investing. I had an idea for a unique video chat company, and I began searching for domain names that were good fits for the project. If any one of the readers has ever named a company, they’ll know how hard it is to find that perfect name.
After days of going back and forth, I finally settled on a brand name. Unfortunately, I found out that the .com was already taken. I emailed the current owner and price was shockingly high. I had no choice but to think of alternative domain names I could use, because I was in high school and cash strapped.
I was familiar with GoDaddy from their controversial and always exciting super bowl commercials, so I scoured their website and came across GoDaddy auctions. Tons of seemingly horrific domain names were selling for sky high prices. At that exciting moment, I became a domainer – I thought if they’re doing it, I can do this too.
2. When looking at a domain name to purchase, what are the key factors that help you determine whether or not it is worth buying?
Most importantly, I follow my gut instinct. Specific key factors I check are age, search volume, number of possible end users (in Google), industry size, and comparable sales on NameBio.com.
3. What mistakes have you made that you can share with our readers to help them from making the same mistakes.
When I first started out, it took me around a year to realize that my hand regged domains belonged in the trash can. Multiple people suggested I take my money and simply invest it in one aged domain. Unfortunately, the advice went in one ear and out the other.
4. How many hours a day do you put into your domain business?
As many as my schedule allows. I’m in college, so certain weeks are more demanding than others.
5. What has been your greatest domain sale to date? Can you disclose the name? If not, can you disclose the overall profit you made on the domain name?
I made $18,500 overall profit on the sale of PirateShip.com.
6. What are your thoughts on the new GTLDs?
I’m holding off at the moment from investing in the new GTLDs. My theory is that if by some chance they end up becoming popular in mainstream society, then I’ll still be able to find excellent investing opportunities at that time. Also, the high renewal fees for many of the current new extensions make it difficult to wait and hold for the future.
That being said, the recent NamesCon auction proved that there’s money to be made in the short term if you study the market and find undervalued assets.
7. Everyone wants to learn how to sell their domain. What’s your advice for someone who has a good name and wants to sell it? Should they do outbound sales (contact potential buyers) wait for offers to come to them, list them on auction websites such as Godaddy, Flippa etc. What works for you?
It depends on the domain name and each person’s business strategy. I think you need to approach each acquisition systematically, and classify it as a long term hold or a quick flip if you need fast cash.
Long term assets should be listed in as many marketplaces as possible. Imagine someone is starting a design business and types in “design” into the Sedo search box. If you don’t have your domains listed there, a possible sale may have just been lost.
I began investing in domains with less than $500, and I raised money by hand registering GEO + keyword domains and contacting end users. The sweet spot for these types of names is in the three figure range, but of course there are exceptions. I once upsold a dentist around 20 GEO + keyword hand registered domains as a package via outbound marketing for a little over $3,000 after he bought just one name for $750.
I don’t reach out to end users anymore for these types of domains now that I’m in college, because it’s a time consuming process. I maximize my time by spending it on aftermarket domain acquisitions. The profits are significantly greater, but the payday is slower.
8. If you had to sit with someone completely new to this business, what would be the best piece of advice you could give them?
My best advice is to get a mentor.
9. What are your thoughts on hand registering a domain name? Do you find value with them or would you rather purchase your domain names from the aftermarket?
As I mentioned before, there’s money in hand registering GEO domains. There’s also money to be made in following the news and registering trend domains. The majority of the domains I acquire are from the aftermarket, and these days I mainly hold them for the long term.
10. Where can the audience find you if they would like to learn more about you?
There ya have it. Another awesome interview with the expert down in the books! We just want to send a big THANK YOU to Daniel Levi once again for taking the time out to answer these questions.
Would you like to request an interview? Feel free to contact us here.
Share Your Thoughts!
- What were some tips you found useful in this interview?
- What can you start doing today to implement them into your business?