Everyone wants to make a profit – but that is not always the case. I have talked to a few people who bought CO domains on the second hand market and ended up losing money when reselling the domain again.
The trick is finding cheap CO domains that will result in a profit even if the final sale is not as high as expected. This takes a lot of patience and time. It has also become much harder to do since CO domains are quickly gaining ground.
Over the past few months, I have been buying many one worded and LLL CO domains. I have been picking up triple premium or repeating letters – for example: RRI.CO, DKD.CO, Shellfish.co.
When I start searching for domains, I usually create a post on Namepros. I suggest namepros or DNforum. Be aware that anytime you have money to invest in domains, you WILL get a ton of crap but be persistent – there are a few diamonds in the rough.
Anytime I find a good deal on a co domain, I usually buy it. I have no problems investing in a solid domain that has the potential of profit in a year or so. I use different places to buy domains – forums (namepros), godaddy auctions, and cax.
Over the past few months CAX.com has been a great place to find CO domains even though it seems to be flooded with crap – yes crap. I have found about 10 solid domains that I bid on and won some.
The funny thing about CAX is the bidders – I have been watching a few CO domains for weeks and nothing happened. No one placed a bid – I took the initiative, placed the high bid and quickly got an email saying I was outbid – What gives? If a domain sits on cax for a few weeks with no action, why do I get outbid right after placing a bid? It’s all about creating a “want.” Also Cax does a wonderful job marketing. If you place a bid, the domain goes into auction and then it it sent out to EVERYONE who visits domaining or subscribes to the newsletter. Even with heavy marketing and paying more than I initially expected, buying from cax is still good to do since it is mostly known about by domainers, and domainers want to sell to end users.
Another way to find CO domains for sale is through direct email. Since I initially launced zoop.co last year I have been getting about 2-3 emails from people wanting to sell their domains to me. Most prices starts high but then after a few back and forth emails the prices drops A LOT. One seller was aking mid $xxx for a 1 worded CO domain and after a few emails (and time, renewal was close) he dropped it to mid $xx. For some reason, renewals scare people.
The CO registry has hit the year mark and domains are now starting to sell. Domains that were being sold for low $xx are now getting $xxx all in a matter of a few months. I hope this continues and that 2011/2012 will have a few decent end user sales. I have been contacing end users about my 1 worded CO domains and I have interest in a few of them but nothing concrete yet.
Also, please remember – if you are interested in buying/selling CO domains check out MyCheap - It is a CO domain newsletter and I am currently building up an email list. I will have the first CO Domains 4 Sale in a few weeks!
Feel free to share your CO experiences below!