When it comes to domain investing and selling domain names, there is a wide variety of thoughts on optimizing domain name sale prices. Some people, like Rick Schwartz, will almost never sell a domain name for less than the optimal market value. As you should know, Rick has done very well with his domain investments and this strategy.
I tend to utilize a different strategy for my domain name sales. For my “inventory” domain names, which make up approximately 90% of my domain portfolio, I try to achieve as high of a price as possible, but I am content selling for a fair price and nice ROI even if the sale price is not optimal.
Luc Biggs has had considerable success selling domain names, and I believe he and I have the same investment thesis when it comes to moving inventory-quality domain names. Here’s a recent tweet from Luc discussing the sale of a two word domain name:
Another brandcentric 2-Word .Com found a new master, thanks to the reach of Afternic/GD: https://t.co/fujv6mncVv; $4,999 BIN. Could have held out for more – but those funds "right now" will generate more profit mid-term (re-invested) than $7-10K in a few years (or "never").
— Luc Biggs (@LucBiggs) June 13, 2020
One could certainly argue that Luc left money on the table with this sale, I would say that the funds can be used to buy several other domain names of the same quality – either in expiry auction or private acquisition. Subsequent acquisitions can yield higher returns that would go well beyond the funds potentially left on the table with the original deal.
I do not have access to endless capital. If I did, I could turn down all offers that do not maximize the value of my domain names. At the same time, I could continue to buy great domain names and add to my portfolio. That is not the case with my business. I rely on the proceeds from domain name sales to fund subsequent purchases. I am generally content selling a domain name for a fair price and using the funds to acquire similar inventory.
There’s nothing wrong with the strategy of holding out for the ideal offer to sell a domain name. For my business, I have always been happy to sell a good domain name for a fair price and move on to other purchases. I think Luc summed it up nicely with that tweet.