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
When nobody is buying & nobody is selling: As I've been saying: CASH IS KING!#Domains #DomainNames pic.twitter.com/vKSBJsMROE
— 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.
Agree with you.
Excellent advice. Thank you Sir.
Good time to buy is NOW
A pessimist sees the difficulty in every opportunity; an optimist
sees the opportunity in every difficulty.”
Those big institutions are buying houses with cash and have no effects on the high interest rates on them.
Cash is king.
Housing prices will go higher when the situation is under control.
All about timing.
When they turn off the Interwebz,…how we all gunna renew our domains?
. . . and in 2023, Crash will be King.
me too (doing similar things)
too many people still bidding up godaddy auctions…
can’t win anything unless you over pay
i don’t see a future slow down coming at godaddy auctions
if you try to sell your own domain, there are no buyers
but at godaddy auction, people bidding up garbage names much worse than yours but they still won’t buy yours at half the price
Makes you wonder….hmmmm