To follow up with an article from earlier today, I want to share what I consider domain name inventory. Technically, all of my domain names are treated as inventory. If I had a storefront, my domain names would be the products I sell. When it comes to my portfolio, I look at names in two ways – they are either premium domain names or they are inventory.
The inventory I have are domain names that are relatively cheap to buy and replace, and I am happy to move them for a fair but profitable price. If I buy a domain name at auction for $500, I will probably list it for sale for $2,500 – $15,000 depending on a multitude of unquantifiable factors (ie gut feel). If I don’t sell it within the first year or two and I get a $1,500 – $2,000+ offer after that, I might take it just to move the inventory and get liquid. After all, these domain names are replaceable.
To illustrate what I consider to be my inventory, I will share 10 domain names I have purchased at auction or closeout in the last couple of months:
Most of these names were two or three figures. In my opinion, all of these can be replaced relatively easily. I think they will all make nice brands, and I can see a company or person paying a premium from them.
Hope that helps when I describe certain domain names as “inventory.”