Domain Name Investing Featuring Vulgar

domain name investing featuring vulgarInvesting in domains is something I’ve really come to enjoy and this article on domain name investing featuring Vulgar, or more specifically, Vulgar(dot)com. After many years of buying and selling, mostly buying, I’ve learned many lessons that have made me a better domain name investor.

Most of the time, my preference is to purchase domain names that I’d be interested in developing into websites, hopefully profitable websites. I’m admittedly not a search engine optimization (SEO) wizard, so I prefer to buy one word domains that I expect will have some type-in traffic (people simply type the domain name followed by .com into the address bar versus running a keyword search).

On occasion, I’ll come across a domain name investing opportunity and will buy the domain simply to try and sell it, flip it, for a profit. A few weeks ago I found Vulgar(dot)com up for auction on Namejet’s website. The domain had everything I like going for it, it’s short, only six letters, it’s a “dictionary” word, it’s a .com (I almost never touch a non .com domain), and it’s easy to spell. But the ringer is that it’s also not a stretch to come up with an idea for a website that uses Vulgar as the foundation. There’s no lack of vulgarity in society.

Normally when I find and am able to purchase a domain of this quality, I’m excited about the development potential. In this case, I don’t have any interest in developing a raunchy site. That’s just not my style and I’m opposed to it from a moral standpoint. This is the type of domain that I’m going to try and do a quick flip on and make a few bucks. I paid $5,100 for the domain name.

The first thing I did is to set up a very basic website using WordPress. I installed my favorite Wordpress theme for selling domain names, Domena. It’s a very simple theme and you can quickly add selling points. I’ve included the screenshot of the website as the main photo for this article. The main reason I set up the domain name on the website is to install Google Analytics. Analytics will tell me just how many visitors are typing in the domain name on a daily basis. So far, the domain seems to receive 10-20 visitors per day.

My strategy for selling the domain has been to list it on Flippa.com for a couple of weeks. I opted for their $99 listing package which is supposed to give the domain more visibility, but I’m undecided as to whether or not the additional cost was worth it. I was able to set up a reserve price, which is the minimum amount I’m willing to accept. I also am allowing the bidding to start as low as $500.

As of today, October 3o, 2013, there are nine days left in the auction. There have been a total of 16 bids and the price is up to $2,100. That amount is still far below what I paid for the domain name, but I’m hopeful that price will increase as the auction nears completion. I’ll try and remember to update this post later to let you know if this domain name investing featuring Vulgar leads to a profit.

Update:  In the final two hours of the Flippa auction, the bids quickly went from the $2,000’s up to $7,000. The bidding stalled out at $7,000, short of the reserve price I had set. I have 72 hours in which to relist the domain on Flippa and receive 50% off the listing fee. Since the auction ended, I’ve also made some changes to the Vulgar.com website. If you like the way the site showcases the domain name, you can purchase the same WordPress theme for $30.

UpdateI relisted Vulgar and lowered my reserve. The domain sold for $6,150, pending escrow closing at Escrow.com. I’ve used Escrow.com as the escrow agent for a number of online transactions, particularly if the transaction is into the thousands of dollars. I was able to relist the domain on Flippa the second time for half the cost of the original listing. I opted for the $28 auction package and purchased it for half price, or $14. Flippa.com also charges a 5% success fee if the domain or website sells.

In summary, I paid $5,100 for Vulgar(dot)com, was charged about $20 for wiring the funds to Namejet.com, paid $99 to Flippa.com to list it, paid another $14 to relist it, a $307 success fee to Flippa, and will have a charge from Escrow.com of $66.19 (I split the escrow fees 50/50 with the buyer). Total expenses of $5,606.19 deducted from a sales price of $6,150 equals a profit of $543.81 for about 3 hours of work. After short term capital gains are taken out and the extra hassle to keep track of everything for tax purposes, the entire process wasn’t worth the hassle. Will I do it again, absolutely! The domain could have sold for $10,000-$20,000 on Flippa and I would have been happy with the outcome. I think the buyer of the domain on Flippa ended up with a very good buy and has a chance to make a lot of money via development or flipping it someday.

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One Response to “Domain Name Investing Featuring Vulgar”

  1. […] common that last few years. One of the main platforms for selling websites is Flippa.com. While I recently used the Flippa.com platform to flip a domain name, it’s more commonly used to promote and sell developed […]

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