Buying Brandable Domain Names
Buying brandable domain names can sometimes be very time-consuming, but a site like BrandBucket makes it a lot easier!
It is worth bearing in mind that as an investment a good .com is worth at least 10 x other extensions such as .net .org etc... which explains why BrandBucket concentrates on .coms, as they are much more valuable from a business point of view.
Names for example such as Vortix.com
The fact that it is difficult to find a good brandable domain name and any service that makes it easier canbe a godsend.
There are a number of such sites - BrandBucket.com, BrandRoot.com, Namerific.com,ICBrands.com - but the biggest and apparently the most successful currently is BrandBucket.com.
Michael Cyger over at DomainSherpa.com recently interviewed Margot Bushnaq the BrandBucket CEO and also Michael Krell a domainer who has sold a fair amount of brandable domain names via BrandBucket.
Interview with Margot Bushnaq
Interview with Michael Krell - how he turned a $1K investment into a $100K revenue stream!
In the interview Michael Krell from MediaPlow explains how he turned $1K into $100K selling brandable domain names through his own site or through BrandBucket
The idea behind brandable domains is relatively straightforward. You buy brandable names from a registrar such as Godaddy for prices ranging from $10 to $100 (or higher if you are feeling confident!) and then sell them on to businesses more than you paid for them! You will probably need to invest quite a lot of time to find suitable names and businesses generally just don't have this time, but they are willing to pay between $2K and $4K per name to you and to sites like BrandBucket as a trade off of time against money.
The tricky bit is finding a name that a business will find interesting and is willing to pay the price you are asking. By signing up with a site such as Brandbucket you have a ready-made audience as the site gets a lot of visitors looking for interesting names to buy. The layout of the site makes it a lot easier to find an interesting name than wading through interminable screens over at Godaddy where the interesting names are hidden within a forest of domain name dross.
Another advantage is that over at BrandBucket the buying process is made extremely easy by the Buy It Now button. The price of the domain is clearly shown and if you want it you just click on 'buy it'. There is no need to enter into time-consuming negotiations or to wait for an auction to finish. If you like a name and you think the price is reasonable then it can be yours in a couple of minutes.
Apparently most buyers do just this. Bear in mind that they may already have spent weeks looking for the right name with no success.
So what exactly is a 'brandable' domain name?
Margot Bushnaq says
typically the word brandable has been used to describe any name that is kind of the opposite of an exact match keyword. It is names that, when you land on it, you do not really know what you are going to get as a customer. It might give you somewhat of an indication. It might give you no indication, like Envato
Or you could also say that something like 'Instagram' is a brandable name, whereas runningshoes.com is a 'keyword' or 'exact match' domain name.
If you think you have or could buy some brandable domain names to offer to BrandBucket then watch the videos above as they give you a good idea of what is required.
If you sign up with BrandBucket and offer them some of your brandable names then they will check them out and let you know if they are willing to list them. At the moment this process takes around 3 weeks are they have a lot of submissions to deal with, as they are in the process of expanding their business.
The fees involved are principally, Brandbucket charges a 30% commission if they achieve a sale. They also charge an upfront $10 fee to list any name they accept, and there is a fee of between $100 and $500 to have the logo designed to market your name. But this is only paid if the name actually sells. All in all these fees seem reasonable, as BrandBucket puts in a lot of effort to find buyers.