Inside a Domain Flip: A quick 15x ROI thanks to Park.io

I received a great question via email from a blog reader this week:

“What price do you typically buy domains for and what do you sell them for? Also is there a certain ROI goal that you try to hit?”

Most of the domains that I buy are in the sub-$500 range, and most of the domains I sell are in the $1,000+ range. Domain names have been my top performing asset class for years now and it’s because I’ve always stayed focused on locking in big returns (500% or higher is my bar) and focused less on big dollar values.

This is where extensions like .CO, .ME, .IO and others have been very good to me. They’re cheap to buy and while you’re not going to lock-in a lot of solid five and six-figure sales with them, you can make 10x or more on your investment, which in my book is about as good as it gets. Also, since you’re making sales in the sub $5,000 range most of the time these can be more liquid and flippable.

A domain I purchased on Park.io earlier this year that is a great example of the kind of flips I focus on. I’m not under any NDA or confidentiality agreement so I can share all the details of the deal. The domain name was Yummy.io and I bought it for $99 on 3/23/2015 on Park.io. If you haven’t been to Park.io yet I can tell you it has quickly become my go-to site for buying .IO and .ME domains.

I sold the domain on August 10th for $1,698 through Afternic, which after $169.80 in escrow fees came out to $1,528 – a 15x return on investment in less than six-months.

yummi-io-domain-sale

Smaller flips like these have become the bread-and-butter of my domain investment strategy. Sure, a nice big juicy sale feels incredible, but as an investor I’m always trying to stay laser-focused on how to get the best return on my investment.

Last week I had a similar flip with a one-word .CO domain, Elan.co which I purchased for $125 and sold last week for $1,248 ($1,215 after escrow fees).

elan-co-domainsale

So shoot for the moon, make some big monster sales, but always keep your eye on ROI because at the end of the day, as an investor, this should be your focus. Happy Saturday!

{ 8 comments… add one }

  • Eric Jenkins September 26, 2015, 11:53 am

    Great Post!!!

    Reply
  • Peter Rose September 26, 2015, 12:11 pm

    Excellent post and tip for buying .io extensions. Thank you.

    I sold a 4 letter domain yesterday which I have had for 5 years but only achieved $1K . So 5 years of reg fees and an initial cost of $50 0which isn’t so bad I suppose. Anyway it was sold thru Afternic and their fees was a whopping 20% inc escrow. Is that a standard fee? I now have some domains parked at DomainNameSales.com and they take 15% in fees.

    Reply
  • John September 26, 2015, 12:25 pm

    Mike at Park.io is the best.We own some great .io numerics for one reason Chinese are starting to buy them.

    Reply
  • Krishna September 26, 2015, 1:08 pm

    Here is a man who is following a strategy which is exactly opposite to Domain King’s one.

    It is difficult to believe that a famous domainer is doing this shit. Life is like that.

    Reply
  • Ron September 26, 2015, 9:01 pm

    I have VSOP.IO
    Now at auction on flippa
    But you can also contact me
    If you are on interested
    Contact: Melpitch.jd@gmail.com

    Reply
  • Bob September 27, 2015, 2:15 am

    Yes agree as I have already purchased few names from Park.io but Feet.io & Beach.ly still failed to make a reasonable sale at Flippa last July. However I also have 246.io & Paste.ly so any serious offers would be considered for these.

    Reply
  • TheKiller September 29, 2015, 4:16 am

    Congrats on the sale!

    You have been charged 10% commission by Afternic. I sold a domain yesterday for $799 BIN and they charged 20% commission.

    Am I missing something?

    Reply
  • ANL.io August 29, 2016, 10:19 pm

    Hey there,

    Thanks for the article. I agree there are some great opportunities with .io

    I currently have http://www.ANL.io in a no reserve auction @ Flippa.

    All the best

    Reply

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