In a public Facebook post this afternoon (embedded below), Mike Mann, founder of DomainMarket.com, posed an interesting question: “There are hundreds of millions of dollars worth of the worlds best .Com domain names for sale at DomainMarket.com but they sell too slowly, any ideas?”
In my opinion, one major issue in the domain investment space is liquidity. You and I each might have domain names that are legitimately worth 6 figures to the right buyer, but that buyer may not realize how the domain name can impact his or her business, and that buyer may not have the capital to be able to afford the domain name. Similarly, we might have domain name portfolios with significant value in them, but selling these assets takes quite a bit of time.
By nature, domain investments tend to be illiquid assets. Figuring out a good answer to Mike’s question would bring considerable investment into the space and would help solve a major obstacle to getting more people involved in this dynamic marketplace.
At the moment, I don’t know of a good answer to Mike’s question. Perhaps some people will see this Facebook post and share some of their ideas about how to bring liquidity to domain investing. What are your thoughts on this?