What a week, what a week, what a week... time for Patron!via Twitter

The Purchase and Flip of WeddingTuxedo.com…in Less Than 6 Months

Back in June I was fortunate to purchase WeddingTuxedo.com at the Afternic Domain Round Table auction.  I had the site parked with Parked.com for a few months but wasn’t making any substantial revenue as the site was hardly receiving traffic.

 

Then in early October, I decided to test out MiniSites with five keyword enriched domain names to see how well they would do with the web design, search engine optimization (SEO) and link building.  By the end of October, WeddingTuxedo.com was launched as a minisite…

 

About two weeks ago, 11/19/09 when Francois from Domaining.com sent out his note about the first mockup of BargainDomains.com I decided to list WeddingTuxedo.com….and BINGO a few days later the domain was SOLD for more than 2X what I paid for the domain name; not such a bad ROI for a domain I held for less than six months…..thanks Francois – I will certainly be listing more of my domains soon.

This entry was posted on Sunday, November 29th, 2009 at 8:10 pm and is filed under Business Ideas, Domain Names, Entrepreneurship, Internet Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

8 Responses to “The Purchase and Flip of WeddingTuxedo.com…in Less Than 6 Months”

  1. Acro says on November 29th, 2009 at 8:32 pm :

    Andrew, I hope you leveraged several thousand dollars in this sale. Frankly speaking, flipping domains in less than a year is the worst thing a domainer can do. If you’re in the US, this means a high bracket taxation around the 30% range – versus 15% for holding domains a year and a day before you sell them.

  2. AndrewHazen says on November 29th, 2009 at 9:07 pm :

    @Acro I understand your point on the taxation issue and agree….you are saying that just like stocks, holding the domain for more than a year lowers your tax consequence and if you sell it in less than one year you have higher tax consequences…..

    I am trying to get my domain name portfolio in order so at the moment, I am still OK with this sale……the purpose of the post was to motivate entrereneurs and domainers; however you do bring up a very good business point – thanks.

  3. Acro says on November 29th, 2009 at 9:20 pm :

    I forgot to say congratulations on the sale. Mere mentioning of quick flipping sets me off sometimes :D

  4. Guru says on November 29th, 2009 at 9:21 pm :

    Actually if you are in the business of buying and selling domains, you pay tax as ordinary income, not the lower capital gains. If you audited, you’ll find out

  5. Jeff says on November 30th, 2009 at 2:51 am :

    The IRS seldom audits people in his tax bracket )

  6. Belmassio says on November 30th, 2009 at 10:05 am :

    According to my accountant, it depends what your Primary business model is regarding how you treat sales.

    If your primary income stream is PPC than you can treat domain sales as regular income. If your primary source of income is sales than you need to treat your sales as investments and that’s where the income tax brackets kick in.

    At least that is how it has been presented to me.

  7. fostertoows says on December 18th, 2009 at 6:32 am :

    Anyone heard about google money pro programm? I accidently came accro this website googlemoneypro
    author claims that this ebook can teach you to earn money with google adwords. What do you think is it real or no. Anyone bought it? I don’t want to loose money again. BTW sorry for offtopic!
    here is website I neeed your opinion

  8. AndrewHazen says on December 18th, 2009 at 11:24 am :

    I am pretty sure that this is a SCAM…..

Leave a Reply