Domain investors come from different parts of the world and have different backgrounds. Despite this, we all have many traits in common. We are willing to invest hard earned capital into digital assets with the hopes of monetizing them. By and large, domain investors are chasing after the same domain names as other investors. There are a few things that set investors apart from each other.
Capital or access to funding – The most coveted domain names cost a lot of money. People with more money or access to funding can spend more money on individual domain names. These people can also continue to spend money on additional domain names to improve their portfolio without having to sell assets to fund additional purchases.
Domain investment portfolio weight – Just because someone has a lot of money doesn’t mean they are willing to spend it all on domain names. Someone with many different types of investments will allocate more or less of their investment portfolio to domain names.
Risk tolerance – Domain investors tend to be less risk averse than most people. We are willing to tie up cash in fairly illiquid digital assets, and that sort of tolerance is not all that common. There are different levels of tolerance, and some people are more willing spend additional capital to secure a higher quality domain name than others. A look at high end domain names in domain auctions can give a good idea of risk tolerance.
Persistence – Great domain names can be particularly difficult to buy because tracking down an owner or the right person at a company can be challenging. In addition, a domain registrant may not be ready to sell a domain name when first contacted. Someone who is more persistent than others may have a better shot at securing domain names. Making more effort than others can or will make can set an investor apart.
All around knowledge – The best domain names are likely the easiest to spot. For many investors, selling the mid-level domain names for a lot of money is what really drives a portfolio. Having general knowledge of many topics can help investors pick up good domain names that may be overlooked by others. This knowledge can then be utilized to correctly price domain names to maximize value.
What other factors did I miss?
Investment Intent: Domain investors can have many different reasons why they choose to acquire domain names. They might be looking for a quick flip, a long-term hold, parking revenue, development of a new business, brand reinforcement /consolidation for an existing business, defensive holdings, trademark protection, lead generation, SEO advantage, domain authority, vanity purposes, or many other reasons. And often it depends on the name. We have domains which we have acquired for almost all of these different reasons.
#1 Luck
Your vision of the future.
Common sense
I would question the “hard earned capital” comment. While it may be true for some , would not say it is a trait that all have in common. This is especially true for investors that are backed by OPM
Just having a good time with my BullS
Having fun…
totally true, especially the last point.
Openness to new information and the need to quickly change course varies dramatically across the industry.