question After holding domains for the long term...

[Kenny How]

Hi Namepros Domainers!

I have a question about unsold domains.

If lets say in year 1, I acquire 100 domains and I hold them for 10 years.

Assuming 1% sell-through rate, I would have sold 10 domains after a period of 10 years.

But what happens to the remaining 90 unsold domains? Do we let them expire and drop, or do we continue to use the sales proceeds from the sold domains to hold them indefinitely? Or do we expand the portfolio by buying new domains?

While I am early in my domain holding period, I kind of wonder what will happen after I plan to hold my domains for a decade?

Just food for thought...

 

[bmugford]

Hi Namepros Domainers!

I have a question about unsold domains.

If lets say in year 1, I acquire 100 domains and I hold them for 10 years.

Assuming 1% sell-through rate, I would have sold 10 domains after a period of 10 years.

To start with, your sell-through would go down yearly if you didn't add any domains.
For instance in year 1 you have 100 domains. After year 5, you have 95 domains.

If you have the same STR and less domains, in theory you would make less sales.

But what happens to the remaining 90 unsold domains? Do we let them expire and drop, or do we continue to use the sales proceeds from the sold domains to hold them indefinitely? Or do we expand the portfolio by buying new domains?

While I am early in my domain holding period, I kind of wonder what will happen after I plan to hold my domains for a decade?

Just food for thought...

It depends. If they are quality domains and finances allow it, you renew them.

Over time more and more end users come online.

I have a lot of domains I bought for $100 - $200 a decade ago that would probably sell for low $X,XXX on auction now. In general the pools of end users just grow over time for quality domains.

Still, I trim the fat and drop some domains every month. Then I replace them with better domains, when I can find them for the right price.

Brad

 

[Kenny How]

Thank you @bmugford for your prompt reply!

Most of my domains that I acquire, I got them at Godaddy Closeouts. My average expenditure per acquisition is around $30. But it takes time to wait for a quality domain to expire and go to the closeouts, so I have to be patient to get a reasonably good deal.

Some domains I got them last year, others this year so technically from the earliest domain that I bought, my hold time to date is 2 years. Still got a long way to go before being sold to an end user, hence I post this question...

Regards,
Kenny

 

[alcy]

there are no rules and domains take years to master. your current folio may or may not be worth keeping. without posting names people cant tell u... there is no guarantee u will sell 1% ... its just a number based on all people who sell 5 or 10 or whatever percent vs those who sell nothing or 1 percent etc

 

[AEProgram]

You need to know your names, some names you hold for life waiting for the right buyer. Most of the names you would do what experts like HugeDomains does and after a while you drop, depending on the name this can be many years. They usually will reduce the price down all the way to 995 before dropping.

 

[phaethon]

I don't thinK there is any guarantee that you would even sell one out of 100 annually, it depends on the name, the price, the circumstances.. You need bigger volume combined with quality to even achieve 1% STR

All you have to do is wait and see. Adding new names is a necessity and definitely helps because you improve the quality of your portfolio. The names you register over the first years will be pretty much worthless due to lack of experience..

 

[D Haynes]

My general strategy is to take 25 percent of any sales out of the "business" and reinvest the remaining 75 percent (this could be renewals and new purchases). Seems to be working so far.

It's hard to say if a name is worth keeping for the long term or not. I think you have to trust your instincts and knowledge. Most of the names I've sold I had for years with zero offers and then out of nowhere they sell which is great but makes me second guess any drops I'm thinking of.

For me domaining had paid for itself for a few years now which makes it easier to decide to renew a name for another year but I think I'd probably have dropped or auctioned off a few for $xx if it was costing me money as a whole.

 

[phaethon]

Most of the names I've sold I had for years with zero offers and then out of nowhere they sell which is great but makes me second guess any drops I'm thinking of.

That's pretty much standard.. law ball offers, views and broker enquiries on Afternic seem to be pointless and should not be taken into much consideration. All you need is an end user with vision and budget close to your asking price or willing to negotiate a bit.

 

[Fryo4life]

My general strategy is to take 25 percent of any sales out of the "business" and reinvest the remaining 75 percent (this could be renewals and new purchases). Seems to be working so far.

It's hard to say if a name is worth keeping for the long term or not. I think you have to trust your instincts and knowledge. Most of the names I've sold I had for years with zero offers and then out of nowhere they sell which is great but makes me second guess any drops I'm thinking of.

For me domaining had paid for itself for a few years now which makes it easier to decide to renew a name for another year but I think I'd probably have dropped or auctioned off a few for $xx if it was costing me money as a whole.

What is your annual average selling price if you don't mind to share?

 

[D Haynes]

What is your annual average selling price if you don't mind to share?

Usually between 5k and 10k total revenue for a year (current portfolio of 132 which is the most it's ever been). I'm my opinion it's a numbers game when selling domains for 1k to 5k each. My goal is to build my portfolio size but its hard to get names at good prices now. When I started 14ish years ago you could pick up names in expired auctions for 12 bucks which now get $xxx to $xxxx in the same auctions.