In 5 Years… My Perfect Portfolio

I was having a philosophical domain discussion last night about the future of the domain industry and where domain investors stand. This got me thinking about “my perfect domain portfolio” and my plans for the future. While we all tend to focus on the short-term, I think it’s important to think further out and set some long-term goals. I know this well help me stay focused on the bigger picture when dealing with present issues.
With that in mind, I would like to share what I think is “my perfect domain portfolio” in 5 years time. I cannot say whether this will still hold true in 5 years, but it is what I am visualizing at the moment.
I will have 2 fully developed city .com geographic domain names that are benefiting each community and the advertisers. I would like both domain names to be cities of between 100-150,000 people, as I believe a city of this size will benefit from a well-developed website. I think it would be much more difficult for a website to have an impact on a larger city, and as much as money is important, I believe a nice living can be made in the mid-size cities. I want to establish strong relationships in both cities, and I want each website to be well-received and beneficial to each city. I believe I have started this with my website, which is still being developed.
I will have 2 developed product/service based websites. They won’t necessarily be full businesses, but they will be in a niche that I find particularly interesting. Perhaps a wine or travel related website would be one of these. I hope this could be a fun website I will enjoy managing and be able to work on as more of a hobby than financial endeavor. Hopefully the geo-domain names will generate enough revenue to be able to do this without worrying about generating revenue on these pet projects!
I will have 15-20 domain names of friends and family. Some of my friends don’t really understand domain management, but they know they need (or will need) their domain names in the future. I am holding a few domain names for friends at the moment, and I imagine I will hold more in the next few years as friends get married or take on new challenges in life. For example, my brother is a law student, so I own a domain name that could be relevant to his law firm down the road.
I will want to own 10-20 speculative .com domain names. These are pure speculation that the topic would be of interest to someone or me down the road. These could all be names I keep in the hopper for my own development needs if I wish. They will all be in areas of interest, and I won’t be inclined to sell them.
As some people have seen, I have been selling names from my portfolio more quickly than usual. One reason I am selling them is because I acquired a large geographic domain name a few days ago (that I have been looking to acquire for over 2 months). This new name fits into my 5 year plan, and I need the funds to offset the high acquisition cost. A second reason I am selling is because I know I won’t ever get to develop the names. It’s not a matter of not wanting to develop them, but rather the time it would take.
The opportunity cost of keeping these domain names is greater than if I sell them and use the funds to pay for other expenses. Sure, I am probably getting much less than I could get down the road, but I know the funds I use from the proceeds of the sale will be more beneficial today to help position me to reach my goals in 5 years than they would be if I held on to them. As domain owners, we need to look at the costs of selling vs. the cost of not selling and see how that will affect our 5 year plan.

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn
  1. Very cool plan Elliot…I think this idea is the crest of the “wave” of the domaining future…for a while now it has been “cool” to see how many domains you can aquire…a “big dog” mentality, the more you have the more peeps respect you…all current undertones in the industry point to this reversing and those holding 100,000 names will wish they weren’t…a few great, developed names will be all a person needs to have a good life.

  2. Tim, I couldn’t agree more with your last statement. Have you ever heard of a domainer called “Zappy”. I’m a late comer in the industry and I really got inspired by Zappy’s stragegy. He and his friend own (only few) great names like,,, and 14 others well developed. These guys are raking in million$ just like that.
    Elliot is absolutely right; well developed portfolio is more lucrative. You need to read the story in this BusinessWeek article:

  3. Isn’t this an awful lot of concentration risk? The bulk of the business will be two geographic names, the rest will be hobbies, altruism, and speculation. Also, does a lot of the geographic development depend on direct sales to local merchants for banners? Some other domain development angles have to be attractive for the long run, no?

  4. I wonder if the Geo names population-size matters that much. It seems to me that the visitors/tourists-numbers is more relevant to Advertising revenue.
    Some seasonal cities / towns swell by %1,000 and that’s where the money is IMO.

  5. Elliott,
    Very good for you! Your long-range plan isn’t necessarily flawed, but agree with Frank that visitors, tourists, etc. are a very good target markets, so….you should also target that segment… People will also want to know what the city has to offer, and local advertisers will provide that content for you. You’ve made some pretty good investments in the geo segment of the domain market. Your sites are coming along and they should yield very good ROI. Best of luck!

  6. Good, I think sometimes the “less is more” is really important, if you have a lot of domain names to develop, or to admin you will not have time to do a good developement on all of then.


Please enter your comment!
Please enter your name here

Recent Posts

.Bet Domain Name Acquired for 5 Figures, Reportedly Resold for $600k

According to a tweet from Identity Digital (formerly Donuts), the domain name reportedly sold for $600,000. I have not verified or researched the...

Finalize a Deal by Connecting on LinkedIn

When I agree to a negotiated deal on a platform like Dan or Sedo, I have always held the expectation that the payment will...

Google Ads Selects Squadhelp for Case Study

If you have visited a Squadhelp landing page, chances are good that you have seen their advertising when you visit other websites that have...

Reliance is “More than Metal” Following Upgrade

Reliance Steel & Aluminum Co. has existed as a business for more than 80 years and is publicly traded under the RS ticker symbol...

What to do with an Unused Domain Name

A person who has long owned a 3 letter .com domain name reached out to me to try and sell it. It's a nice...