Mike Mann posted a tweet on Twitter yesterday that seems to imply he is seeking investment capital for his domain name business:
If you’d like to make a safe bet (investment) you can bet that I will sell enormous numbers of domains at very high prices.
— Mike Mann (@mikemanndotcom) July 5, 2017
People who follow Mike on Twitter know that he regularly reports high dollar domain name sales. Yesterday, for example, he shared that he sold GeorgiaBride.com for $24,888, a domain name he acquired for $20 at the end of 1999. While sales with huge returns like these are great, the cost to run a business with hundreds of thousands of domain names must be quite high.
I believe Mike’s company owns hundreds of thousands of domain names (DomainMarket.com says it has 288,839 domain names listed for sale). I have to think that the renewal fees are into the seven figures each year. I would also imagine Mike is actively buying new domain names to bolster his company’s inventory, and that is also expensive.
Even though Mike reports getting top dollar for the domain names that he sells, the cost of renewals plus the cost of new inventory (registrations, auctions, and aftermarket acquisitions) must also be very high. When I emailed him to ask about his tweet, Mike told me that the “money would be used to buy super premium .com domains.”
Mike was the founder of BuyDomains, and he sold that business in 2005 (he wrote a brief case study about it). He has built his current company into one of the largest domain portfolio operators. Mike knows domain names better than most, and this Washington Post article about Mike from 2014 has some good background information about him and his business.
I have no information about Mike’s operating costs or revenues, nor do I know how much he is seeking to raise. As with any investment, you should do your due diligence first.