When I was a freshman in college, I believe it was the President of our school who, in giving some advice to us, said “keep your powder dry.” I know the saying pre-dates him by several generations, but that saying has stuck with me. As a domain investor, I think it is important to “keep your powder dry.”
This part of the more famous saying means that you should always be ready. Obviously my interpretation of it has nothing to do with firearms or gunpowder, but rather the funds necessary to acquire domain names. As an opportunistic domain name buyer, I do what I need to do to keep my powder dry.
Opportunities to buy domain names come at all times. Sometimes the owner of a domain name who rejected an offer for a domain name a couple of years ago decides to put the name on the market and asks if I am still interested. Other times, a domain name is offered for sale by a broker. There are even cases where an auction seems to come out of the blue, and having cash is necessary to make a purchase. There are too many scenarios to mention, but having the ability to acquire a domain name on a moment’s notice is key to being successful.
The takeaway with this is that people who want to continually improve their portfolios need to be in a position to do so. I am regularly reaching out to prospective buyers, negotiating with prospects who inquire, working with brokers who have clients with purchase needs, listing names for sale in auctions, and doing what I need to do to keep cash flowing. Most investors have relatively low fixed overhead expenses, but they need cash flowing in order to make quality purchases.
I can’t always afford to sit and wait for offers to be made. I need to make deals happen. Keeping my powder dry ensures that I don’t miss out on opportunistic deals.