15 yrs condensed; My thought process on buying expired domains & developing online projects:

(thread)

You essentially start with a domain name & reverse engineer.

Before I consider anything, I require the domain pass this first test:

Is there domain-founder fit? (ie. Do I have some level or interest or curiosity regarding the category/field the domain represents?)

If there is, I move forward. If not, I bail, regardless of revenue potential.

First filter:

Domain has to be .com. No alts (.co, .io, etc)
Domain passes radio test
Domain is exact match, descriptive
One or two words. I typically avoid 3 or more
No dashes or numbers in domain
I prefer a sales price below $50k

Routes:

I typically consider [b2c products] or [b2b services], and shoehorn domains into those models.

1) If domain represents niche product, I consider selling online

Q's I ask myself:
Does product have strong $ margins?
Is there ample search volume online?

Are there limited product providers?
Is it manageable to ship?
Is there re-occurring revenue opportunity?
Can I build as a solo founder? Or build, then partner with subject matter expert?
If competitors, what are they doing right & wrong.

Is this a commodity item found on alibaba/aliexpress. If so, avoid.

All Qs not mandatory, but worth considering

I try to create/sell unique products. Product like these folks: @theoldtry; @Ugmonk; @Beardbrand

Build a moat, so to speak. Domain + unique product.

2) If domain represents business category, I consider B2B development where I drive leads. Oftentimes a curated directory/marketplace.

Q's I ask myself:
How large is the category universe (how many businesses in niche)
Is category growing or contracting? it healthy?

Do biz in category actively advertise? Billboards, magazines, radio, paid search, etc
Is there strong search volume online?
Are there competitors driving leads? If so, what do they charge?

Is there re-occurring revenue opportunity?

Folks who operate this model well: Glamping,com; PodcastGuests,com; BikeTours,com

My other alt category is job boards - - it follows similar Qs as b2b.

I don't analyze exit opportunities. I only analyze solving problems with great .com domain names, bootstrapped, built by solo founders with emphasis on purpose over profit.

To share examples: some domains I've bought over the years (via expiry) to develop:

DudeRanch .com (sold)
BearSpray .com (sold)
Ziplines .com (sold)
VidaliaOnions .com
BirthdayParties .com
CallTracking .com (sold)
MechanicJobs .com

To monitor expiring domain name opportunities for yourself, consider these marketplaces (where I hang out):
Namejet
Snapnames
Dropcatch
GoDaddy Auctions

Essentially, turn yourself into a mini-VC. Let expiring domains pitch themselves to you. Turn down 99.995% of them. Wait for the one. It's out there. Save $5k or more. Keep it handy for acquisition. Ignore naysayers who say .com doesn't matter. It does. And it's wonderful.

If you need some pointers on how to sift through the 50k-100k domains expiring every day, read my essay (updated in July 2020):
https://www.deepsouthventures.com/window-shopping-expired-domain-names/

this thread was inspired by @sweatystartup and his insightful tweet here:
https://twitter.com/sweatystartup/status/1294667715492413442