Approached by a Domain Broker

Just got a call from a domain broker who represents the owner of what is arguably the 2nd best domain in the storage auction niche, StorageUnitAuctions.com. I had inquired on the domain a few years ago; however, they were asking 50K back then. Fast forward 2 years, now they're asking a mere 40K but open to offers. 

I politely told him that I wasn't interested (at least not anywhere near that price) and gave him an earful about how difficult it would be to sell that particular domain. I let him know that this was a dying niche, that the leaders have already established themselves and that they were just too big for a new website to compete with. Not only that, every way of monetizing a website for this niche has already come to market.

Nobody is going to spend that kind of money on a domain unless they can see a return and the few people in this niche that could afford it don't need it because their sites have already been branded.

He probably should have sold it a few years ago...could have got top dollar.

He probably should have sold it a few years ago...could have got top dollar.

Like Drew did!

Like Drew did!

 

Like Drew did!

Right.    But would you rather have 20K right now or $500 a month for the rest of your life? Some people want a lump sum while others would rather have the positive cash flow. I like cash flow. About a year from now, the advertising revenue will have completely paid me back the money I invested in this forum.

I like both, and I try to set it up where I've got money constantly coming from a variety of sources......too many people have all their eggs in one basket...usually a "JOB", and then they get laid off and they are scrambling trying to survive on unemployment until they get another one.....

Investing in websites is a lot like investing in real estate...except you don't have to deal with evictions. From a financial stand point, the start up costs for investing in websites are much lower. There are websites on Flippa.com that are producing $200-700 a month in ad revenue that you can pick up for $2-10K. The key to it all is finding websites that are here to stay. You wouldn't want to buy a website about iPads because chances are the technology will be different 10 years from now. Vice versa, a website about something like tennis, as boring as that website might be, could be a lifetime income stream. Realistically, if someone were to invest 100K, they could reasonably expect a 30% or greater annual return on their investment. Beats the hell out of real estate (unless your flipping) and the stock market and it's relatively safe. The only thing you really have to worry about is a Google penalty or algorithm update that negatively effects your site. But, if you aren't doing anything shady, you don't really have to worry.

I let him know that this was a dieing niche........

This is an admission worthy of note. Not because "dying" is spelled incorrectly, but because of the source of the statement.

This is an admission worthy of note. Not because "dying" is spelled incorrectly, but because of the source of the statement.

Thanks for correcting my spelling, I knew you were good for something. 

Thanks for correcting my spelling, I knew you were good for something. 

And I knew there would finally come a point when you could acknowledge that storage auctions and everything associated with them were on a downhill run toward the bottom of their popularity.

And I knew there would finally come a point when you could acknowledge that storage auctions and everything associated with them were on a downhill run toward the bottom of their popularity.

Yeah, there are aspects of this business that are slowing. Fewer people at the auctions, fewer people searching for auctions, fewer people subscribing to auction lists, fewer people reading forums. Traffic numbers are much lower than they were a year ago but the numbers are still decent enough to make the niche lucrative for the sites that are already established. The virtual storage auction niche is still on the upswing.

Yeah, there are aspects of this business that are slowing. Fewer people at the auctions, fewer people searching for auctions, fewer people subscribing to auction lists, fewer people reading forums. Traffic numbers are much lower than they were a year ago but the numbers are still decent enough to make the niche lucrative for the sites that are already established. The virtual storage auction niche is still on the upswing.

Yep, there's nowhere to go but up despite the first five points you made in the quote above.  Optimism is a wonderful thing.

storage auctions will always be around, heck alot of us were around way before the tv shows came on. that said the new interest came and went it had its 15 minutes in the spotlight and now its back to the real hustlers and resellers. downside to that is those who know the industry dont really have to buy products or even visit forums just for knowledge its more a social thing for them if they do. probably not too many newbies to storage auctions anymore

Both replies #9 and #10 above pretty much sum up the scene as I see it today.

While great lockers still sell for big bucks in my area there are more opportunities in the lower priced lockers.

Meanwhile, of the 10 or so regular buyers in my area a good 4 or 5 out of 10 are moving along in new directions.