information - Expert Exchange: How Do You Decide How Much of Your Profit to Reinvest in More Domains?

After you have sold a domain name, how much of the profit do you invest into new domain names in order to grow the value of your portfolio? It’s difficult to know whether to put 100% of your profits into additional domain names, which is why we’ve asked our gathered experts exactly what they do.

Below, our experts share their ideas on reinvesting money into domain names by answering:

How Do You Decide How Much of Your Profit to Reinvest in More Domains?

Nat Cohen (@Telepathy), Owner of Telepathy.com

I tried to reinvest as much of my profit as possible in the early years, because there were so many opportunities to acquire quality domains at a fraction of the price that I was selling similar domains for. Now, I am trying not to reinvest so much in domains because I am already so heavily invested, but it is hard to avoid the temptation to keep buying.

Shane Cultra (@Domain Shane), Domain Investor & Publisher of DSAD.com

I am fortunate that I don’t have to pay any bills from my domain revenue. So other than holding costs, I reinvest all of it.

Frank Schilling (@Frank.Schilling), CEO of Uniregistry

I don’t look anymore. We just spend when we can find value. Typically $350,000 a month.

Giuseppe Graziano (@Giuseppe Graziano), CEO of GGRG Domain Brokerage

I typically do not invest in domains unless it is something I want to develop. This being said, if I were an investor, I would reinvest a large percentage of my profits depending if domaining is my only income or not. Also, the composition of your portfolio is important. I think established investors can afford to gamble 5-10% of their portfolio with speculative investments like new registrations. If you are starting out instead, I would stick with liquid domains to minimize the risk of loss.

Mike Mann (@Mike Mann), Owner of DomainMarket.com

I go broke and then I know.

Being one of the largest portfolio owners, it’s no secret that Mike has made a considerable investment in domain names, which is why we asked Mike for more details on his response. We asked the follow-up question, "Does that mean you put 100% of the profits back into your domain name investments?"

Mike replied:

Yes and then some. Deficit financing.

Joe Styler (@Joe Styler), Domain Investor & Aftermarket Product Manager at GoDaddy

I usually invest about half my profit back into domains and half into other investments such as stock or ecommerce stuff.

Andrew Rosener (@MediaOptions), CEO of Media Options Domain Brokerage

We invest almost 100% of our profit back into domains. After expenses.

Morgan Linton (@domainflipper), Publisher of MorganLinton.com & Co-founder of Bold Metrics

I used to have a hard and fast rule, but I don't anymore. That being said, I usually invest some portion of the profits towards buying new domains to add back into my portfolio.

These responses have been edited for clarity.

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