When it comes to domain investing and domain investors, there are quite a few different business models to make money. Each business model requires a different strategy and different tactics that are often divergent. Choosing a strategy or multiple strategies is an important decision to make, and a domain investor’s strategy can change over time.
Some people have small portfolios of exceptional domain names with high prices to match. They may sell infrequently and are content to wait for the ideal buyer. Some people have huge portfolios of names that churn sales regularly. They use the cash flow to grow their portfolio. Some people don’t focus on selling but they monetize their domain names in various ways. Some people have hybrid business models.
There are people who operate their business on a full-time basis. They make their living solely from their domain name investments. There are people who own domain names as a side-gig or hobby. They want to make money from domain names, but they do not rely on their domain name income to feed their family or pay the bills.
Quite a few people broker domain names on behalf of others. Some of these people are also investors who have their own portfolios.
Many people do outbound marketing to sell their domain names. Many people don’t do any marketing to sell their domain names. Most people give some indication that their domain names are for sale. Some people don’t give any indication their domain names are for sale and figure a buyer or buyer’s broker will find them.
Some investors hand register their domain names and focus on quick turns at lowish prices but nice ROIs. Some investors buy extremely expensive domain names and flip them quickly to others at low ROIs but for large profits.
What works for some domain investors would totally blow up someone else’s business model. For instance, an investor who owns a small portfolio of exceptional domain names could aggressively price and sell her domain names, but replacing them would be impossible and would be out of business. In another example, an investor who focuses on hand registrations and closeout purchases could blow up his business by buying one expensive domain name that never sells.
Things I do in my business are different than things other successful investors do. Domain investors have different business models and different ways of operating. There are many ways to make money from domain names. There are also many ways to lose money, too.
If you’re going to take domain investing advice from anyone, you need to understand their business model and how the advice could help or hurt your business model.