For my business model to work right now, I need to buy and sell a few premium domain names each month. On occasion, I will keep and develop a domain name that fits within my development plan – for example, when I buy a geographic domain name I want to build out. I don’t really have the time or inclination to operate additional websites at this point, because I look at my websites as incubating businesses that take considerable time to manage.
I frequently run into a problem when buying a great domain name. Because I tend to focus on verticals and industries in which I am familiar, I often buy names I’d love to own rather than sell. If I kept all the names I bought, I would have been broke a long time ago, so keeping everything isn’t an option. I face this predicament monthly, and I bet there are others who have the same issue.
My advice to others is to keep what you can afford, but sell what you need to sell to stay liquid. In my opinion, there isn’t much of a point to being “wealthy on paper” while being cash poor at the same time. You can frequently come back to the person you sold it to and make an offer down the road if necessary. With the funds you used from the sale of that name, you probably made better acquisitions and bigger sales, so you can afford to pay a premium for that domain name if necessary.
If you don’t want to take a chance at not having the opportunity to keep the domain name, you should think about financing options. Domain Capital and DigiLoan both offer different domain financing, and both companies are operated by domain savvy business people. With domain financing, you can stay liquid while keeping your prized domain names.