My domain investment portfolio has grown from around 500 domain names to around 2,000 domain names in the last several years. Even at that size, getting consistent domain name sales is a challenge. Using a 3% annual sell through rate as a benchmark, that would equate to around 60 domain name sales a year – or about one sale a week on average.
The two most exciting things for me in the domain space is acquiring a great domain name at a reasonable price and selling a domain name for any price. Yeah, a six figure deal feels better than a $1,000 sale, but an unexpected $1,000 deal gives a nice jolt of dopamine on an otherwise uneventful day.
With my still relatively small portfolio, I don’t usually see consistent sales. I might get 3 random sales in a week and might go two weeks without a single sale. That’s the way this business has been for me for many years. I am still not adjusted to the ebbs and flows of domain investing.
A dearth of sales for of a couple of weeks is exacerbated if I am also not making good acquisitions. On average, I probably acquire 5+/- domain names a week at auction or in private, but these don’t really move the needle all that much.
When I am facing a deal slump longer than a week, it can be frustrating. Sometimes I will do some outbound marketing on a sub-$5k name to try and get the deal flow faucet running. Sometimes I will shift my focus to a family or personal pet project to take my mind off of a lack of sales.
Domain investing can be a roller coaster ride. One minute I am high-fiving (myself) when I’ve come to terms on a deal, and the next minute I am cursing under my breath because the buyer backed out or is running into problems.
This business has been consistently inconsistent for me since I started, and I have to remind myself that things have generally worked out pretty well over the mid to long term. If I hold good assets, there will be buyers, I tell myself.
If you’re running to a period of no sales, you’re not alone. It’s something most investors face.
Really enjoyed your perspective here Elliot. “Consistently inconsistent” is a phrase that describes how this industry can be. I’ve also noticed my sales have come in “feast or famine” environments where I get a cluster of sales and then …. crickets. With that being said, I still wouldn’t trade my journey with domains for anything.
As I said many times,if you raised the bar for yourself you going to set yourself to fail.
This domain investing or whatever you want to call is a stress free BS hobby for me and I am earning big money on this….no brainier
I don’t buy domains ,all my domains are hand reg (Chicken or the egg)
At cheap prices and resell for thousands.
Hand reg domains like squarely.com
Marijuanaguy.com
Marijuanadomain.com
OnlineDrones.com
CloudEngineer.com
And more and more
I hear you, Elliot
Domain Investing can be frustrating
I had no sales in 3 weeks, then woke up to a 5 figure sale via Afternic today
5 figures won’t push the needle much, but at least it gets the dopamine juicing
I have a little over 3000 domains — and I can’t say any of these domains are “liquid”; i.e, able to get market value immediately
My real estate assets are mainly liquid
Even many of my sports cards are “liquid” — e.g, a mint PSA graded Ted Williams rookie card or a mint graded rookie Jackie Robinson, Sandy Koufax, Roberto Clemente, Tom Brady, Lebron James, even a PSA graded 4 1953 Satchel Paige
but i don’t own any liquid domains like Voice.com, Sportsbet.com, Chat.com or Chat.ai — and by “liquid”, i mean putting the name on the market tomorrow and getting its intrinsic and market value
There are many domains investors who own super liquid domains, and they can sell one of their domains for mid-6 figures tomorrow, if they got in a pinch, but they also recognize it could fetch 7 or 8 figures down the trail
I accepted the first offer for 2 domains this year on Afternic — even with all my domain experience – then a few weeks later noticed both these domains were acquired by public companies with mega market cap 🙁 one in hospitality, the other in healthcare
Never accept first offer IMO.