Earlier today on Twitter, Rick Schwartz posted something I agree with and want to amplify – cash is king right now:
When people start buying things other people start buying
When people stop buying things other people stop buying
When people start selling things other people start selling
— RickSchwartz.com 👑 The Domain King® 👑 Since 1995 (@DomainKing) September 23, 2022
Despite the high rate of inflation that is essentially devaluing currency, having cash on hand is critically important. I think many people are going to be facing tough times in the months ahead, and having cash in the bank is important.
I am in a fortunate spot, but I have been doing a few things to batten down the hatches and fortify my cash position:
1) Bidding on fewer auctions. I am still buying names at auction, but I am more picky about what I buy.
2) Making fewer purchase offers. I like the makeup of my portfolio, and I would rather have a strong cash position than overpay for an asset that is going to sit in my portfolio for a while.
3) Reaching back out to prospective buyers. On deals that didn’t get closed, I have been reaching back out to prospects to see if there’s any interest in discussions.
4) Lowering some prices on Afternic. I don’t love constantly changing prices, but I think we are in for a fairly long recession. People will be less willing to overspend for a domain name, so I am going to reduce some inventory pricing a bit.
5) Emailing end user buyers. I don’t think my strength is end user outreach. I also don’t love the rejection it inevitably entails. However, I have been doing a bit more of it to move some inventory.
6). Turning off auto-renew on some names. With about 1,500 – 2,000 domain names in my portfolio, my renewal costs are in the ballpark of $10-15,000/year. Ordinarily, I don’t let many names expire since I tend to like them as much today as I did when I bought them. In addition, I’ve felt that even if I cull 10% a year on the far outside, the $1,000 in savings is a negligible amount of money. That said, there are some names I don’t think I will ever sell, and I have been less afraid to turn off auto-renew lately.