Buying Domain Names

Domain investing can be a high stakes business. I invest substantial amounts of money to buy individual domain names, with the hope that someone is willing to buy it from me for substantially more than I paid. When spending 5 figures on a domain name acquisition, I need to be right about my retail valuation.

Here are 5 things I usually check before making an offer to buy a domain name:

One question I am asked quite a bit is about how long it takes me to sell my domain names. This isn’t something I really track, so I usually respond by saying that it can be a week or 10 years – it can be a crapshoot and come down to how motivated I am to sell a particular domain name.

For those who are curious about how long I’ve held names in my portfolio, I did a quick analysis of my inventory this morning to give an idea. Interestingly perhaps, all of the domain names I owned in 2007 and prior aren’t domain names I would sell. For instance, I bought TopNotchDomains.com in 2006 and that isn’t for sale because I am using it for my corporate website.

Here’s an approximate breakdown of domain names in my portfolio by acquisition year:

The last week of the year is usually pretty slow for domain investors. Decision makers are traveling and people are not focused on domain name acquisitions if they are in the office. This is great because my family always heads south the last week of the year. Because it is slow for many investors, it may be a great time for startup founders and CEOs to lock in a deal on a domain name upgrade.

When I receive an offer or inquiry during the final week of the year, it usually gets my full attention. I may not be working from the comfort of my home office, but I am not balancing 20 other negotiations either. I imagine other investors also have a lull in negotiations and can be available to focus on one important deal.