Taking the Next Step - The Domainer Conundrum

[namestrands]

Bear with me I do have a question, but a bit of background first.

Ok.. So I developed a domain name and have been working on it for a few years now. Its a Niche News and Information Site. The site earns around $40k a year now in advertising revenue without any proactive sales (advertisers approaching us directly) Rebook Rate is 100% Quarter on Quarter so I can assume that it is converting for those advertisers. Its simple enough to run as have a couple of part time editors producing daily content. All in all it takes up an hour a day to run and another hour to maintain.

Having created sites like this for others, our earnings are a mere shadow of theirs. Some of my clients are turning over $300k a year, the difference is they are pro-actively getting on the phone and selling. Most of these people work alone and outsource the website to people like me to manage.

I worked for a magazine publisher who sold ad space on magazines that did not exist yet, and I have developed sites for this same company that were abandoned because they would only take in £1/4m a campaign (4 sales people on it)

Now these sales people were talented, but not TALENTED by any stretch of the imagination, Confidence they had, but they lacked any real skill when you look at those in the banking and stock markets.

I know the concept works and I know that had I the skills to sell, I would not be on here talking about it.

Setting up our own Niche Information Site was tough, and I am not sure I could do it again even if I tried. That being said I have this domain that is screaming out for development, I know its a winner as I have no site on it, and its getting 5000 hits a month and I have had no less that 16 offers on it these past 4 months.

It has now become an industry Buzz word and it will continue to grow momentum this I am 100% sure of.

So here is the question, I know the concept works, it takes little investment to get started, more time that money initially. I do however lack the skills to pull it off, so here is the question and I am sure many domainers face this every day but at what point do you admit to yourself that the the best solution is to sell and watch another bring it to fame.

Is it feasible to seek out partnerships to pick up the areas in which you lack, or do you sell and regret...

 

[Poker]

...at what point do you admit to yourself that the the best solution is to sell and watch another bring it to fame.
Is it feasible to seek out partnerships to pick up the areas in which you lack, or do you sell and regret...

If you like the domain/site then only sell when you have to. Have to comes down to two scenarios 1) you need the money for a project that you are more passionate about, or you just need the money for bills etc.. 2) an offer is way too juicy to pass up in current or impending market conditions.

Always remain the land owner, find others to help you build on it and give them some equity in it.

 

[namestrands]

There in lies the conundrum, I invested high 4 figures 6 months ago for this latest domain knowing that it would become a buzz word as early signs showed this to be the case.

I am passionate about it as it compliments what I do.. I like most can always do with extra cash, but I am not desperate for it..

I have not really seen any effects of these market conditions, as I stopped parking domains at the beginning of the year and never looked back.

I guess what I am looking for sub conciously is as to whether or not anyone else has been in this situation and resolved it by partnering with others. Do partnerships work? has anyone done it? if so how do you go about that.

 

[Jack Gordon]

By all means seek out a partnership. It sounds like you are in a situation thousands of entrepreneurs would give their left arms to be in. If you believe in the potential, do not let it go. Find someone with good sales experience who would be able to invest in the project with you. If they have to bring something to the table besides their ability to sell, they will be more likely to take it seriously in the long run, and not bail as soon as things get tough.

Here is what I would do... seek out a small business attorney to draft a basic partnership agreement, then begin looking for someone you think you can work with. You are not offering a job, you are offering a partnership. Structure it properly in writing, get some investment capital from the partner (at least 50% of your investment, plus agreement to share costs equally going forward), then go about developing the business with you on content and the partner in sales.

And yes, I am a successful entrepreneur in the real world. This business arrangement can work well if you set it up properly on the front end.

 

[DN BROKER]

Hmmm

 

[namestrands]

@r2U - Sound Advice, basically echoing what I am thinking.

@CureCancer - I have no issue working on this for the next 10 years, its simply a case of hitting the proverbial brick wall

 

[azanmi]

Namestrands, I'd love to hear a bit more about how you found success on the news/info site. I have the perfect name for a specific industry magazine (an industry that is booming) but I'm not sure how to pull off the site.

 

[steveto]

I wish I had the luck you've had with sites. If I can only have one of my sites bring in $500/mo I would be happy. Anyway, just be careful when choosing a partner. if you can do it yourself, then I would highly suggest it, but if you have to bring in a partner, just make sure you lay everything out at the beginning as far as responsibilities go, who gets what (money) and you always need to include an exit clause just in case for both parties.