Mike Sullivan is a long time domain name investor who in my opinion is one of the nicest and most helpful in the industry. Mike blogs at SullysBlog.com. Below is an interview with Mike to get his views on all things domaining.
Q1) How long have you been buying and selling domain names, and what got you interested in domain names?
I bought a couple of domains in the late 90s. I didn’t have the foresight to invest in names full throttle or even grasp the future value they possessed. At the time, I was more interested in website design and found the internet a fascinating new spoke for business. I purchased a couple of names for some online business ideas I had.
After some time, there was a name I thought had some potential, so I started poking around to see how to sell it. That’s when I first came across the domain blogs and realized there was a whole industry around domain name investing.
I joined a few domain name forums and found myself clinging to the folks at Domain Boardroom for advice. They were all very kind and made me feel at home. I met some great contacts there, some who have become friends and even business partners.
Q2) Since you have been doing this a long time, are you still as bullish on domain names as when you started?
I am! Don’t get me wrong, I was almost euphoric when I started. I went crazy hand registering names by the dozen and a few early sales fueled my fire. I even picked up some after-market names before I knew what I was doing, which taught me some valuable lessons of the game. Then renewals started flowing in and I was grounded in reality.
I quickly learned it’s not a quick cash game. But as I stabilized and met other investors, interviewed premium domain owners, and networked with entrepreneurs, I started down a path of really learning. It turns out that it’s been the part I like best about domaining.
I still enjoy domaining as much today as I did when I first started. I see there is still an opportunity. Sure, it looks different to me than it does to someone like Rick Schwartz or Mike Mann. I can’t play at the same poker table as those guys, but I can still play and enjoy the game.
I just have to look for opportunities from different angles than they do. I still learn a ton from what those guys and others post every day. I learn from people who have been domaining longer and shorter than I have.
There are opportunities to learn all around. One thing that comes with experience though, you are able to differentiate those who have lessons to teach and from those who like to hear themselves talk. Some do both, which is fine. You just have to choose what you let in.
Q3) When it comes to domain names what extensions are you most drawn to?
Like most savvy investors, I love .com. But most of the best ones are out of reach. I do love the challenge have and registering a slightly less premium or great long-tail dot com for resale.
The best part about it is that the risk is low and just about anyone can afford to do it. Then the challenge is to find your buyer. They typically don’t come knocking on your door for domains at this level, but sometimes they do. If not, then you seek out the right buyers and there is still some good money to be made.
I also like .io and now .ai. I own some .io names and haven’t yet pulled the trigger on a .ai but I like to follow them. The TLD must fit though. As you know, something like GrandmaSmithApples.ai isn’t fitting (then again, you never know with AI). The second-level domain should fit well into the TLD. The beauty of .com is that it goes well with everything.
Q4) You published a book on outbound for domain sales, what has the reception been like?
The reception of the book has been great and it has been rated well. It’s called Domain Sales Emails that Work! I got the idea as I saw so many new domainers struggling to sell their names.
Once in a while, I would post some good as well as some horrible emails on my blog that I had received. I’ve been sending and receiving these types of solicitations for years and I have found little nuances that have made a difference for me.
The book contains several templates that I use in different situations and have had success with. I keep those templates current and add to them anytime I updated or make changes to them.
It’s available for free to anyone who wants it. Just enter the code FREEDOMAIN on GumRoad and it’s yours. I just ask for any feedback readers have after trying it out. I suppose I should say “free for a limited time” in case I ever decide to pull the coupon.
Q5) What are the biggest mistakes domainers make when doing outbound?
Oh, so many mistakes. The worst part about it is that those mistakes waste their valuable time, and the domainer gets frustrated and gives up.
As far as the biggest mistake… this is going to hurt… it’s sending out emails for your domain names that are worthless. I would venture to say that 97.5% of the domain names I have received emails for were just terrible.
I’m not special though, many of my names have sucked too. It’s just one of those things that you either need to learn from experience or get some help in understanding what makes a good domain name.
If you manage to get past that hurdle, not having a target audience is a big mistake. Many new domainers blindly email everyone they can and ask them to buy their domain names.
They don’t spend the time finding the right buyers that could benefit from the name. If you are selling a bakery-related name, a tire shop owner isn’t going to be interested. If you are asking full price, the domainers you follow are not going to be interested either. Figure out what you have and who might benefit from owning it.
Q6) You just started a course for beginners, what led you to come up with this new program?
I have wanted to write The Beginner’s Guide to Making Money with Domain Names for years. I spent my first few years in domaining making mistakes, struggling, and trying to learn. Most of the people I have met along the way have done the same.
There is something to be said for going through the pains of trial and error, but it doesn’t have to be that way.
Additionally, I have reviewed several domaining books that are out there and to be frank, I have to wonder if some of those authors have ever really been in the domain industry. The books are usually short, full of basic information, and in some cases poorly written and edited, with bogus claims of getting rich doing nothing.
As I started drafting my book, I got to thinking that the industry is dynamic and it changes frequently.
Also, I wanted to publish what I had put together but I knew I would want to continually add to it and update it with new information and examples.
I was tempted to just make it a long series of blog posts but that felt too disjointed to me. Publishing it as a course would make much more sense. Then I would have complete control of it.
Similar to the OutBound email book, I wanted to make it free, at least at the beginning. But I also wanted people to take it seriously because it contains good and time-saving information for new domainers and I put a good deal of time and effort into it. If I have to pay for something, I usually give it more value than if it’s free. Right or wrong.
So I decided to follow a “pay what you can” model, allowing users to pay as little as $3. I hope that the community finds it valuable and benefits from it. Again, I don’t know that it will stay at this price, but I don’t plan to raise it in the immediate future.
Q7) What are your thoughts on Web3 domains?
This is definitely an area I need to spend more time in. I have dabbled but do not consider myself an expert or even educated enough to confidently share an opinion on. There is a chapter in the course about this but more informational than experiential.
Q8) Someone comes to you and says Mike, I am brand new to domaining I have $5,000 to commit nothing more, anything else I do will have to come from profits generated from the initial $5,000. How do I spend it?
I would be the guy that answers that question with another question. “How active do you plan to be in domaining?” If their reply was “Not very,” I will suggest taking that $5,000 to an online trading platform and investing in an S&P index fund and call it a day.
But if you plan to be active, I would say spend 80% researching industries and related aftermarket domain names priced between $5,000 and $10,000 including comparable sales history and potential buyers. Then spend 10% of your time putting in offers on the best ones you find. Spend your final 10% on marketing your name.
Thanks for the interview, Ray!
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