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View Full Version : Domain Reseller Strategies


IT_Architect
08-13-2006, 08:13 PM
This thread is about reselling domains profitably. I do have and enom account, and will be asking questions about enom, but I don't want that to be the focus.

Enom thoughts and questions

I'm not an enom ETP, but I do have a $6.95 reseller account under an ETP for my own domains. I might resell for enom if it made sense, but it has been impossible to get questions answered by either their web site, by contacting my ETP directly, who doesn't know these answers, or by contacting enom, who doesn't respond to calls or emails.

It has been postulated on another thread that to maximize profitability from enom that one could could sell $8.95 reseller acounts to people. The math goes like this:
$8.95 Sell Price to reseller - $6.95 cost to ETP = $2.00 Gross Profit.
I like that arrangement as the $6.95 reseller, however, to find people willing to accept the responsibilities of being a reseller, put at least $100 into their account and get "dinged" 3%, just so they can buy a domain at or above market prices, doesn't strike me as something I could build a business on.

If as a retailer I buy the domains for $6.95 and could actually resell them for $8.95, the math goes like this:
$8.95 Sell Price - (($8.95 Sell Price * .03) - .95 Transaction Fee) = $7.7315 Cost of Goods Sold.
$8.95 SP - $7.7315 COGS = $1.2185 Gross Profit
With the $1.2185 GP you need to setup a business plan, web site, promote your sales, accept risk from those sales, purchase a telephone system, hire people for tech support, and take on an accounting burden. You are also selling other services for enom for which you receive no commissions. Is that accurate?

Questions not answered by enom:
1. Who notifies the domain owner when the domain is expiring?
2. Is there a method to get the transaction fees down to 2.7% and $.25 as with normal merchant accounts?
3. Does Enom have any kind of reseller handbook?
4. Can anybody explain the positioning of PDQ, Registry Rocket, and the API methods of selling?

Which registrar is the most profitable to promote and why?

Thanks!

Bashar
08-14-2006, 07:25 PM
1) either you or setup your account that lets enom does it , its an option there
2) yes use the API and code something or use the available softwares around such as awbs/whoiscart/modernbill etc..
3) not that i'm aware of
4) PDQ fancy management like having your own enom.com website, good for multple domain management; RR simgle, good for single domain management; API is good for advanced stuff especially if u want to integrate other stuff with domain selling such as shared/dedicated hosting etc.. and gives the power to change everything including look and feel (more freedom)

which registrar would be the least cost, perfect in technology and support IMO

IT_Architect
08-14-2006, 11:32 PM
That explains a lot

1) either you or setup your account that lets enom does it , its an option thereIs that true even if you use the API?

Thanks!

IT_Architect
08-15-2006, 08:26 AM
Has anyone looked at the Directi program in detail? They certainly have a plan for selling domains, but I have no experience with them.

milkalicious
08-15-2006, 04:54 PM
My suggestion is just that using the "mosaic" method might be the best. By that picking and choosing the best of each service may provide you with the most cost effective programs. Also in my experience the domains are not the piece where resellers make money the money is made in the ancillary services like recurring revenue from hosting, the graphic design pieces, the database development. If you can find efficient and effective ways to develop those models that is where the recurring revenue usually derives from and the domains pricing becomes less of the issue and more of a solution. Specifically I would really look at finding a provider for 3rd party merchant accounts as you have a little more leverage but your up front cost will probably increase.

IT_Architect
08-15-2006, 07:55 PM
Specifically I would really look at finding a provider for 3rd party merchant accounts

At $.95 per transaction plus 3%, that will happen.

elmister
08-15-2006, 08:43 PM
I think your calculations are wrong

Selling at 8.95$, 1.2185$ is not your profit, it's the cost of the Credit Card processing.
So for a domain sold at 8.95, you only receive $7.7315
you are buying domains at 6.95$, but you are also paying another 3% when paying enom with your credit card, that raises the cost to $7.1585

So, your profit is ($7.7315 - 7.1585) = $0.573

Not very profitable, because, as you said, you'll have to pay support staff, telephone, etc

Getting your own merchant account would help to reduce that cost