Let me say right up front that domain sales as a business model is really difficult way to try to make a living. There are some exceptions to this statement, but they are few and far between.
The problem with most domain sales is they are more a function of luck than of a carefully planned strategic decision. They happen so infrequently that for the majority of investors they don’t know when and what quantum of size the next sale will be. This makes planning in your business next to impossible.
For instance, let’s imagine you have a portfolio of 5,000 domains and during the last 12 months you sold a domain for $5,000 in January, one for $20,000 in June and finally one for $5,000 in September. This brings the total of your sales to $30,000.
This sounds great and everyone trumpets the $20,000 sale when you get together at NamesCon in January. What most people don’t tell you is the fact their renewals are $50,000 and during the last 12 months they went backwards by $20,000. Sure, this is a contrived example but I think you can get my meaning.
The dream is that one day you’ll sell a domain for $1,000,000 and all the waiting and constant reinvestment will be worth it. I hate to rain on your parade but given that only a handful of domains are sold for these sums of money each year then your aspiration will likely remain a pipedream.
The question I want to ask sales investors is actually quite simple, “What domains do you drop to reduce your costs so you’re profitable?”
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