I am regularly asked by friends and colleagues “how is business?” Although this question is simple, the answer for someone in the domain business may be fairly complex, especially if they want to be honest and not give an “all good” response without really sharing anything.
For me, honestly answering this question can be difficult. The status of my business changes on a regular basis. I could be having a crappy month, but one large deal makes everything great. Similarly, I could be having a very good month and a few major acquisitions or expenses could give me a bit of concern when it comes to the cash flow.
The number of purchase leads can also impact my perception of how business is, but should it? The vast majority of leads who want to purchase my domain names either don’t have any idea about the value of domain names or they don’t have the budget to buy their desired domain names. I like it when I have a steady flow of leads because it can show I am on the mark with my acquisitions, but at the end of the day, if the leads aren’t qualified, they don’t really matter all that much.
There are many factors that go into making my business good. The unique thing about the domain name business is that things can change rapidly. One very large sale or acquisition can change my perception of the health of my business very quickly. I suppose this is similar for other types of businesses, but I think the domain name business is a bit more immune to outside economic conditions.
For the most part, I think people are being nice when they ask “how is business?” Most people probably care a bit, but they don’t really care about the details. When it comes to other domain investors who are asking, it can be a tricky question. Not only can the answer depend on the day or week, but my entire perception of how my business is doing can change in a heartbeat.