Two Weeks, Two Flips – How I Turned $1,000 into $10,000

Today I wanted to share two of my most recent flips with all of you. These flips particularly illustrate how much opportunity there still is in the Domaining space, if you make the right investments. This year I have focused almost exclusively on one and two word .COMs and one word .ME and .TVs. I have found these have the most liquidity and resonate the most with end users who can use them to build a brand or grow their existing brand.


WP Engine

I get a lot of emails from people who have spent thousands of dollars on terrible domains thinking that if they just sell one of them they’ll make a fortune. Unfortunately they usually lose their money and leave the industry with the feeling that all the good domains are taken and they are too late to make money.

My two most recent flips show how much opportunity their still is, but also shows how important it is to buy high-quality names. With that, let’s dive in and I’ll tell you exactly how I turned an $1,000 investment into $10,000.

dotMe

A few months ago Sedo held an auction of premium .ME domains. I have been a big fan of .ME for a long time now, they are great for branding and have become quite popular in the app world. I purchased a total of eight domains in the auction for $500/each. My bidding strategy was simple, I bid on about twenty names total simply setting my bid price at $500. Then I didn’t look at the auction at all after this.

When the auction closed I ended-up with a total of 8 names for a total of $4,000. Most of these were one word domains with a few really nice two-words that I just couldn’t resist. About a week later I was approached to put a few of these domains in an upcoming auction being held by another company. Before listing them in the auction I had Simonas send-out emails to the owners of similar domains letting them know that these were available to buy if they wanted otherwise they would go to auction.

If you don’t know Simonas he is in charge of domain sales for Linton Investments. He’s a very sharp kid from Lithuania who just graduated college and has a solid knowledge of the domain space. Two weeks ago we had six offers on camping(dot)me which sold for $5,000 and last week we sold rap(dot)me also for $5,000. A total investment of $1,000 yielding a profit of $9,000.

So as you can see these flips did not happen because I was in the Domaining industry early on (I wasn’t, I started in 2007), nor because I had some unfair advantage. The auction was open to anyone and all the names I bought were $500 so there wasn’t any incredibly high investment that had to be made. Now I have six more great .ME names to sell and $5,000 in profit once you subtract the $4,000 I spent on the names. The opportunities are there but if you’re hand registering a bunch of random domains you could end up spending thousands of dollars on a collection of domains, rather than real investments.

You’re not late to the game, Domaining is still just getting started, but like any investment strategy it’s taking the time to make the right investments that makes all the difference. I always recommend that anyone who wants to get started in the domain investing world take a look at my book:

Domain Investing Handbook

Read The Domain Investing Handbook

Morgan

Co-Founder at Fashion Metric
Morgan Linton was born in Berkeley, California but spent nine years traveling the world as an early employee for digital music startup Sonos. In 2007 Morgan founded Linton Investments, a domain name and branding company that has helped some of the most recognized startups in the world acquire their top choice domain name. In 2012 Morgan left his full-time job to co-found Fashion Metric, a startup building technologies that make it easy for online shoppers to buy clothes that fit and arming retailers with more data than ever before.

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{ 15 comments… add one }

  • Aussie Domainer August 13, 2012, 10:23 am

    Wow, well done Morgan, thats a really quick turn around and a massive profit. Also great news for others who have invested in .me lately.

  • brian August 13, 2012, 10:47 am

    great return.
    I bought two e-commerce names for $15k in 2004 and after receiving offers of upto $35k nine months ago(i didnt sell). I contacted the person who made me the $35k offer that the names were up for sale at $30k and not reply yet. Morgan could have waited and got more, but he was wise and cashed out and i am left waiting….

  • Alan August 13, 2012, 10:52 am

    You “go” Morgan, congratulations!

  • d.r. August 13, 2012, 11:20 am

    Congrats Morgan:)
    I love .me domain names! I pray for the day that .me is recognized amongst end-users worldwide.
    If every person who owns a .me domain would donate $1usd into a fund, that would pay for some good mainstream advertising for the .me domain extension.

  • Michael August 13, 2012, 11:46 am

    Hi Morgan-
    Awesome transparency! I don’t believe you could have been any clearer there. This is a nice glass of stfu for the cry baby domainers or newbies who arent turning a profit and think there is no opportunity or all the good names are taken.

    Informative posts that have value and can teach someone an investment strategy or method are the best in my opinion. Raw data and examples are the icing.

    I also hope Diana is doing better now and you two are ready for your wedding. VERY exciting stuff!

    Regards,
    Michael

  • Morgan August 13, 2012, 11:56 am

    Thanks for all the positive comments everyone!

    @Brian – thanks for sharing your story and excellent point!

    @Michael – thanks, transparency is key and I love sharing my successes, and my failures. Appreciate the kind words about Daina, it’s been a hard week but she is doing much better today!

  • Jeff August 13, 2012, 12:07 pm

    What happened to your statement about your .me purchases “These will all become real brands”?

  • Mike August 13, 2012, 1:56 pm

    I like the quick turnaround time on these domain flips! I think the pros like yourself try and cash out as soon as possible nowadays…Good job!

  • Perry August 13, 2012, 3:52 pm

    Congratulations, Morgan! Those are 2 phenomenal flips!!

    Can you share who the buyers were?

  • Morgan August 13, 2012, 5:24 pm

    @Jeff – building 8 brands was a bit too ambitious, in fact even building one will be too ambitious now since Daina and I are focused on building our new company Fashion Metric. I will not be building any more brands this year as most of my time will be devoted to turning Fashion Metric into a full scale business.

    @Mike – I don’t always try to cash out as soon as possible, but 100x profit is hard to turn down

    @Perry – they buyers wished to remain anonymous however if they leave their WHOIS data available you should be able to see who they were

  • Light August 13, 2012, 8:27 pm

    Thanks for the post. Dot me seems like a good investment.

  • Tristan August 13, 2012, 9:04 pm

    Congrats on the sales! I also bought a .me domain in the auction which I am currently developing. Hoping to sell it for a similar amount of profit as well.

    Could you share where you sold the domains? What was the company?

    Congrats again and I wish Daina a speedy recovery!

  • Michael Searles August 14, 2012, 5:52 pm

    Some terrific insights being shared here… congratulations and thanks Morgan.

    What’s your feel for the potential of the .PRO domain extension for replicating your .ME flipping strategy?

    I hand registered a number of .PRO’s last year and am ready to test the market for value estimates.

    btw.. not sure if you do this Morgan but if you thought it worthwhile to partner in the outcomes of selling these domains let me know…

  • Bob August 16, 2012, 1:44 am

    Nice flips – but I’m actually more interested in how you found Simonas! Is he local or virtual? A good domain sales person is harder to find than it sounds!

  • John July 1, 2013, 5:58 pm

    Nice work. i definately must agree that there is still plenty of good names about. Its now July 2013 and i managed to reg some imho great 1 word .me domains. monetises.me authenticating.me personalizes.me veifies.me verifying.me (verify.me sold for $16,000 in the landrush) authorizes.me and many more all registered very late in the game. So if anyone is interested in maybe buying any of those names to then flip them and make a great profit , i am more than willing to sell them at a reasonable price so you can make money too. honeybonchy@ yahoo dot com

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