Roller Coaster Ride of Domain Investing

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I was chatting with a friend last week, and he asked about how business has been for me during the pandemic. Thankfully, business has been fairly strong, all things considered. Discussing things at a high level, I told them business had been moderately slow for me in the early Spring but it bounced back in July. While it is unusual for me to see very strong sales numbers in July, it is not unusual to have ebbs and flows throughout the year.

I have always found my domain investing business to be a bit of a roller coaster ride. With a domain name portfolio of somewhere around 1,000+/- domain names, I have a consistent amount of small to medium sized sales. These sales tend to fuel my business and keep it running smoothly, but I rely on the larger sales to help expand my business and improve my portfolio.

It’s great when my most valuable domain names sell themselves, but that doesn’t happen too regularly. This is partly because they are expensive and difficult to replace, and partly because I do not do outbound marketing on my high value domain names (FWIW, I am not doing much outbound marketing this year). I have always been fortunate to close a decent number of high value deals each year, but while they are consistent over the course of a year, they happen in an inconsistent manner.

I don’t love sitting idle, and an average or below average month of sales combined with an expensive month of acquisitions can be challenging from the mental aspect. Even if the prior month was huge, it frustrates me when the next month is not as strong and there is more money going out on acquisitions and expenses than income coming in.

Depending on the size of a portfolio, there may be lots of ups and downs in domain investing. Some months are great and some months can be slow. Overall, things tend to even out, and the business of domain investing remains relatively strong.

5 COMMENTS

  1. I do not have a large portfolio and usually the summer months have been slow, but this year I have had a lot of inquiries during this time when many are on holiday. I expect the fall will be good for sales.

  2. during the 11 years I’ve been doing domains full time there have been a couple of times where i thought it might not work and I’d have to do something else, but I’d forge ahead and give it my all before anything else and was always able to bring things back on track. it sure is a rollercoaster.

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