Morning Folks!!
Teem.com is a domain that keeps on giving like an ugly duckling sprouting into the Golden Goose. Last night I got another email from them. They have ANOTHER $173,000 in holdback money that I will be getting in 2019. That brings the total deal to $1,150,000. It is now my most lucrative hand registered domain name ever. $35 in 1998.
That means I doubled my money more than 15 times in 18 years. And that does not include PPC revenue over the years!
$35, $70, $140, $280, $560, $1020, $2040, $4080, $8160, $16,320, $32,640, $65,280, $130,560, $261,120, $522,240, $1,044,480, And that still leaves $105,000 and change!
And here is the complete list of things you could have put $35 in during 1998 and have a bigger return.
Stocks? NONE! Bonds? NONE! Real Estate? NONE! In fact, the only one I could find would be Bitcoin. But even bitcoin you would have had to buy it at 10 cents or below.
There was and has been no better investment and ROI than domain names. GREAT and even MEDIOCRE domain names that all end in .COM!!!!!!!!!!!!!
The domain itself was sold for less than 10% of that final figure. The remainder came from my 1.5% equity play! It also notches another 7 figure domain sale for me. I have lost count!
In 1996, I said I would never sell a domain for under $15k and I was laughed at. In 1999, my minimum number went to $50k and the laughter was louder. In 2001 my minimum for a domain was $100,000. And it has remained that ever since. With the exception of a couple domains I sold strictly for the tex benefit.
I don't quote $15,000 anymore. Not $50,000 anymore. Not $100,00 anymore. In FACT, my lowest price going forward will be $250,000. And let me state clearly, it does not matter what the domain is. It is about the demand for that name. The importance. The overall market.
To me, it's the comparable value to opening a real world business. You can't even buy the land for $250k. 10 years RENT is $250k. 10 years of employees manning the store is more than $250k. My point is even at $250k, the domain name is CHEAP when you compare. And just because many domainers are WEAK and are FOOLS and use ESTIBOT does not mean I have to be one too!
So, you want my domain? I will sell it for a PENNY! But that equity better be worth millions!
How do you do a deal with equity?? DEMAND IT!
My biggest equity stake remains Candy.com at 12.55%. The company is a monster now. I am not at liberty to tell you their volume, but it is stunning!
I also have shares of my Punchbowl.com which is now owned partly by Party City. They have been growing at a fast pace and have major deals in place with Disney.
What's next? I don't know. I will say that Homemade.com is my #1 domain for inquiries this year. I won't be selling that baby without equity! Estibot has it at $83,000. We will see who has the closer valuation in time! Here is a hint. It ain't Estibot!
But 99% of domainers would grab that $83,000 in a heartbeat. Not me! WHY???? Because I KNOW and I UNDERSTAND, VALUE! I won't leave THAT MUCH money on the table! I'd rather pass than be a fool! My money is SAFE owning domains like this. I have no problem holding a great asset!
Homemade.com was created on December 25, 1995. One day before I got my first domain. It was bought by me from a 3rd party. I paid $5500 and also got Wad.com and Rumormill.com in the deal. That's why I don't worry about selling EVER!
Lastly, I don't care if folks know what I paid for a domain name. I know many domainers do. That's from weakness. What I paid has no bearing on value or sales price. NONE!
Rick Schwartz
John
This is a really great post. I’m filing it under two categories instead of one in my favorites system, and saving a copy to disk.
Regarding homemade.com, it is a remarkable double whammy. Not only is it obviously super valuable for the most normal thing people think about, i.e. food, but it may be many times more valuable than even that for the adult industry, whether one supports that or not. But just in terms of the real world and real end user value, 7 figures is the absolute minimum. More like minimum 7 figures plus equity.
John
PS, I’ll bet that’s mainly why all the inquiries on that one too.
Rod
Congrats on making savvy investments and recogising opportunity where few others did. Your mindset allowed you to make some life changing deals that others wouldn’t have with the same names.
Mika
Congratulations. Good times keep on rolling :)
steve
what would homemade even be wanted by a company?
John
Read my comment. It’s very well known.
Paul
John, can you please pipe down. Your opinions are quite annoying.
John
You’re the person who is being silly here, whoever you are. Sorry you live in the one dimensional lazy world of Facebook where anything beyond a short clipped and sterile remark is too much to handle. I would gladly bet $10k that our host is not unhappy about what I said here, and I would gladly bet $10k the he’s also known all about why homemade.com is valuable in the manner I stated since long before I did. In fact it would be very strange if he didn’t.
So this little attack of yours was unwarranted and unnecessary.
Nonetheless, may the Schwartz be with you.
Bret
I wish I had domains like candy and homemade. That’s like owning beach front real estate.
Logan
Another wonderful post, Rick! Thank you for your investor mentality and contributions to the global domain name marketplace.
If any of your prospective buyers of Homemade.com happen to be German, we’ve got Hausgemacht.com that could be a part of the same deal you structure with a serious buyer seeking to lock up the brand name in more than just English.
Jay
To all the newbies take notes this is how to make $$$ in the DOMAIN industry. you cannot do this with the GTLD bullshit you have in your portfolio.
Jose
Congratulations, for what you have achieved in your purchases and sell as financial, where the claim of your domains (.com) are true art jewels that are on your heels those who turn to you to get, candy.com, teem.com and many more that I buy when there are only a few of you who see the business of your future.
Each one does his business with the domains (.com) what they have wanted to open a business of registrations domains, others become brokers, others do a Forum, others continue with their work and you became a financier with a high degree of profitability financial.
I value what I currently have with domains (.com) and my wishes are to return to what I did 18 years ago, I could not fulfill for family matters.
I am one of those who does not lower their heads and fall asleep on their laurels, I have several projects on the table of the creative studio of my house in my domain (.com) we will see if the New Year is more fruitful.
Happy Day. Jose.
Sigma
Mike Mann has been attacking the throne lately, but Rick remains the Domain King until Mann or someone else can beat his long term hold strategy.
Congrats again Rick; the checks keep on coming.
I hope to be able to say the same one day, so I take very good notes…
Hand Reg Domain Inspiring Stories - TLdJournal.com
[…] Above are just some of the domain names that have sold and are reported. Here is another example of a hand registered domain name that is as old as the Internet and which was registered by the DomainKing ‘Rick Schwartz’ which shares the story of this domain name here […]