You Want to Make REAL Money With Your Domains? Sell a Product

Mar 26 2010

leomaid-StandObviously there are many ways to make a living in domaining.  Some buy and sell names, some sell other people’s names, some people market for the domain companies, and others buy and develop,  selling other people’s services or goods.   All these can be very profitable and can even make you millions as proven by many domainers but if you want to make real money, sell something.

Sure you can make money being an affiliate and getting your cut but after your 10% guess who makes the other 90%, the person with the product.  An ebook is a product but it’s not even a real book.  Again, people have made millions on ebooks, maybe even more than some people have made on real books but there is more to be had by having a real business with real product.

The reason most domainers don’t sell produts are the barriers to entry.  You have to buy the product, market it, and ship it.  You usually have to have a brick and mortar locations staffed with people.  This is expensive and time consuming.  It is much easier to just take small pieces of the pie and not have to touch anything.  So why in the world would Rick Latona partner up in Vino.com and buy and sell watches?  He doesn’t like wine and watches that much.  He likes money.

The entire reason I got into domains was to find strong domain names that I could move my product through. I still buy tons of related domains but I did veer off track a bit over the years and have bought hundreds of non plant related domains.  What I’ve found is I make more money in one week with the domains I sell my product through than I do the entire year, maybe two years, with the domains I sell ads or affiliate products on.  You can look at money earned a lot of different ways.  I look at profit dollars generated. Money invested minus the costs.  Sure there are huge differences in amount of capital needed to fund the two different types of endeavors but when I have to pay the bills they don’t care how much I invested in each, they want me to pay them with money that I’ve earned.  I want to earn as many profit dollars as I can, regardless of investment.  You may say it’s easy to make a million dollars when you have a millions dollars.  Wrong.  It is EASIER but not EASY.

Another way to make money without have an actual product is selling a service.  Although not a product it still takes an investment, an investment in time.  Either yours or an employee’s.  I don’t like it as much as product because it’s not as easy to scale.  In most cases it’s easier to fill an order of a million of a product than a million services.

So here’s what I would suggest to get you started.  Pick ONE product, something you like, something you can buy at wholesale prices and think you could sell a few.  Put up your website or landing site and try and sell your wares.  Get used to setting up your credit card clearing and your layout.  Take orders and fill and get the feel of what it takes to manage one product.  Once you feel comfortable, add 10 more.  Ten in the same niche that you can sell on the same site.  As you get the hang of these and make a little money, you keep expanding.  This is certainly not something you do overnight and is not something you can do with 50 sites (unless the sites all lead back to one) but will take time, even years.  Often, what you end up selling will have nothing to do with what you started out selling.  As it evolves you find your niche. That product that people really want or something you came across one day and one thing led to another and boom….you’re in business X.  That story happens all too often.  The old, ” I didn’t plan on doing this” story.  So give it a try, sell something.  Your pocketbook may thank you (or your wife may kill me because you now have a closet full of T-shirts that say “Chicks Dig Long Tail Keywords” you couldn’t sell)

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Outsmarting the Dumb, Outworking the Smart

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8 comments

  1. Robbie

    I shall be doing the same shortly on my new site Glasses.ltd.uk, I have formed a company and found a supplier, We shall be selling Designer Sunglasses at some of the best price online – Site is being built but I totally agree my margins are much better than being an affiliate.

    Good Luck with what ever you start, I have also started the same on one my site Curry-Sauce.com we sell, you guessed it Curry Sauce.

    Its actually alot easier setting up these than trying to find content and develop and hope for some adsense clicks.

  2. Tim

    @Troy…….a domainer is not a profit creating business man?

    Funny, I’ve been making a profit at domaining for about 16 years now….LOL. 🙂

  3. John Humphrey

    Shane, are you selling plants online? Do you drop ship ;–)
    I have a couple of product domain names and have been researching, on and off, the efficacy of setting up the whole shebang- LLC, reseller license, importing from China, storing and shipping etc. It’s pretty daunting. I would buy the book that tells me how to do it.
    Where I specifically end up on the fence is, calculating the profit margin- so many variables and so little experience. The 4 Hour Work Week has a couple of examples that help get me close, but basically it looks to like a physical product would need a price point of at least $50. to warrant the effort. And then still, it would need to be a tight enough niche that the eBay guys aren’t all over it.
    I really like the BobbleHeads.com model, where value is added through personalization. I keep the hampsters up late trying to come up with a product niche /domain name combo that lends itself to that business model.
    That said, I do have ONE product that comes to mind and your post has prompted me to move forward with a test.
    Thanks,
    JohnH

  4. Joseph Slabaugh

    Reason most domainers do not do this is cause they are lazy, and that is for me too. We got into this cause of the easy money promises – spend 8 bucks, make lots more. Spending more then the 8 dollars to us is not going along with that theory, so we don’t want to put the effort into it.

    Personally I have been making youtube videos for 3 years now, and they have received millions of views, and as a YT Partner I now get paid for those users watching my videos.

    Recently YT enabled my account to also rent my videos to users, and while I am not sure how I am going to use that, but it could come in handy.

  5. Ozie Jackson

    I don’t fully agree that its better to sell products than services. It depends on the service. I am working on a mobile ad platform and I would rather have a million clients sign up on my website to have their mobile ads served than ship a million pairs of shoes.

    Also, the right service allows for residual income (monthly or yearly fees) where as few products (ex. bottled water) are consumed regularly enough that a consumer would buy it that often.

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