I’ve generally been an advocate of owning one name of significant value than ten domain names that cost the same as the single name. However, in thinking about my business model, I think I would rather own ten excellent domain names than one exceptional domain name that costs as much as the ten excellent names.
When selling exceptional (high value) domain names, there are often many interested parties. Companies usually want to own the exact match domain name for SEO purposes, vanity reasons, to make it easier for customers to find their website, and for defensive reasons in order to keep it away from a competitor. However, even though there have been hundreds of millions of dollars in domain name sales on the books, many companies are reluctant to spend six or seven figures on a domain name.
If you need a very high sale number to profitably sell an exceptional domain name, it might take quite a bit of time for the market to yield that. You can then spend money and time investing in a development project or business, but unless you are passionate about the topic, you could end up turning potential buyers away, tying up more cash, and wastefully throwing good money after bad money.
On the other hand, if you have ten excellent domain names in your portfolio, you can probably have better luck with sales. You’ll have ten domain names to pitch to end users, hopefully in different markets. An excellent domain name will still command quite a bit of money, but it’s probably money that can be more easily spent without scrutiny from the board of directors, venture capitalists, C-suite, or other high level decision makers that are needed for very large purchases.
For me, I think I would prefer to own ten excellent .com domain names rather than one exceptional domain name, unless I planned to build a fully operational business on it. One domain name is tying up significant funds in one investment, and I think it might be better to have a more diverse portfolio.
Would you prefer to own one exceptional domain name or ten excellent domain names?