Domaining MBA Monday: Not All Niches Are Created Equal – Part 2

Domaining MBA MondayLast week I wrote a post about niches that are hard to sell domains into. This week I wanted to talk about niches that are easier to sell domains into and dig a bit deeper into why this is different for everyone. In Domaining like in most other industries there is no answer that will apply to everyone, in fact, this is even more true in the Domaining world than in many other spaces.

The complexity here has a lot to do with the nature of selling domains. Selling domains is all about finding qualified buyers, and each one of us has access to different people and expertise in different industries. This is why what works for one person often won’t work for someone else.

When it comes to finding good niches to sell domains in, not all niches are created equal. Just like there are niches with less liquidity than others, there are of course niches with more liquidity, but those niches depend on the domain owner, not the domains. Let me say this again because it’s one of the least-understood complexities in the domain world, the niches with higher liquidity have more to do with who owns the domain than the domains themselves.

Let me give you an example. Let’s suppose you work in the boat industry, you go to boat conferences every year and know a lot of people in the space. You have an amazing edge at selling boat-related domain names since you already know lots of people in the industry.

If you’re a travel agent and know a lot of people in the travel space then travel-related domains might be a good fit. However, if you work in finance, trying to sell domains related to boat and travel might not be so easy. Not all niches are created equal – you have a massive edge in the niche you currently work in.

This is the best place to start however I don’t want anyone to take this advice to mean that you can’t find liquidity in other niches. You absolutely can, but you’ll have an edge starting in your own niche. If you’ve already found success in your niche and want to look at other niches, try to find someone who already has contacts or expertise.

Let’s say you have a travel-related domain but you work as a software developer. You could find a friend who works in the travel space that might be able to introduce you to very targeted potential buyers. If you don’t know someone in the industry you’re trying to sell-into, do your research, liquidity exists only when you find buyers that are interested in buying a domain name.

If you want to buy big in a trend, find a conference or event where you can go and meet people in person. Network, meet people, learn, and give yourself the knowledge you need to really learn the market. You don’t have to suddenly devote your life to it, but if you really want to understand who the players are in the market and who the real decision-makers are you need to prepare to do your homework.

If you think Expedia is the perfect buyer for a domain name you have, go to a conference they attend. If you think a consumer electronics company is your target market go to CES in Vegas, the biggest consumer electronics show in the world. The idea is simple, there are no magical niches out there that are easy to sell into. Instead there are niches where people have the right contacts and those where they have to rely on cold calls and emails.

You will always see the most liquidity when you can reach the most decision-makers and the biggest companies. Most likely you already know this information for one niche, if you want to sell into another do your research and make the connections you need. If you’re currently spending time sending email after email trying to convince people you’ve never met why they should buy a domain from you then you know this doesn’t work.

Start with a market you know and once you branch out, learn the market you move-into.

{ 4 comments… add one }

  • wickovitscz September 2, 2013, 11:23 pm

    whatever the domain owner is selling his domain for is his business. higher the price is better for all of us. “everything cant be 5 cents!”

    Reply
  • Irfan September 3, 2013, 1:04 am

    Good post, specialization is not only a part of Domaining but it’s also an essential tool to tap and tag the buyers .

    Reply
  • HowieCrosby September 3, 2013, 1:17 am

    Good write up Morgan, the niches work well as they are usually a passion.

    I’ve sold domains in a niche, I’ll be happy to share, in my other business, Vintage and Retro!
    But they don’t sell for huge amounts, however the ROI is very good, as they they have all been hand reg’s, selling for under $500, using GoDaddy Buy it Now.

    Reply
  • Diana Goodwin September 3, 2013, 1:09 pm

    Thanks for this post. I already knew what you wrote about, but I needed a reminder! Yes, I have tried to market domains to industries outside of my personal and professional experiences, and have gotten nowhere (at least, not yet!) I have lots of domains pertaining to what I know, and that’s where I need to focus my sales attempts, at least for now.

    Reply

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