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.

 

[Adrigan]

experts like HugeDomains

Hugedomains are not experts. They are just like regular real estate agents, wanting to sell regardless of the price. This outfit and the idiots at afternic have no real understanding of domain name value nor are they in the business of wanting to understand value, never mind be able to express it in their prices.

Middle men don't and have never cared about value, in any market, because their focus is in numbers/turnover.
I get that your point is not necessarily about domain name value, but when you use the word "experts", you need to be clear what they may be expert in , which maybe in selling domains for the lowest price.

 

[Adrigan]

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...

You have to distinguish between commodities, like food, clothing, etc, and things which are unique. Domain names are all unique, even if some look/sound like others. Thus, each one will have a different appeal and value and so I suggest you don't think of your portfolio in a purely numbers way because this conceals the various subtleties and differences between all of your names.

I would take a buyer's view of each name you have and think about its use and thus, what price to set the sale price to. If you can't do that for any name, or the price is not much ($<100), then its probably not worth keeping and I would just let it go and move on. You could also look at domains that look/sound similar to a name that you have and see if any have sold and for how much.

GD closeouts is synonymous with "nobody wants these names" so you need to be very careful buying from such a source.

 

[alcy]

Hugedomains are not experts. They are just like regular real estate agents, wanting to sell regardless of the price. This outfit and the idiots at afternic have no real understanding of domain name value nor are they in the business of wanting to understand value, never mind be able to express it in their prices.

Middle men don't and have never cared about value, in any market, because their focus is in numbers/turnover.
I get that your point is not necessarily about domain name value, but when you use the word "experts", you need to be clear what they may be expert in , which maybe in selling domains for the lowest price.

except they arent wanting to sell
.. they are selling

 

[Jollygreen]

I would aim for a higher resell rate. If it takes 10 years to sell them, I would think they aren't that good or you are asking too much. Take a hard look at them before each renewal and drop any questionable ones.

 

[nicenic]

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...

If the domain names are not sold within a few years, you can choose to let them expire and delete them to reduce renewal fees; if you think they will be valuable in the future, you can continue to hold them; or you can buy some new potential domain names to expand your investment portfolio. In short, domain name investment is long-term, and unsold domain names may appreciate in value as the market changes.

 

[alcy]

bro
domains take years to master
best u learn for 1000hourr before buy

else u can forget str u wont sell nothing

we all start same

thinking it's all easy money first then finding out it isn't

u keep learing til u dont need to ask question like this or value of domains from others

that's how u know u ready

I know plenty here who lost money first year or two overall.

but if u buy nothing u lose nothing

wish I knew. i was lke negative 15k aftrr 3 first years overall

enjoy ride

 

[Kenny How]

bro
domains take years to master
best u learn for 1000hourr before buy

else u can forget str u wont sell nothing

we all start same

thinking it's all easy money first then finding out it isn't

u keep learing til u dont need to ask question like this or value of domains from others

that's how u know u ready

I know plenty here who lost money first year or two overall.

but if u buy nothing u lose nothing

wish I knew. i was lke negative 15k aftrr 3 first years overall

enjoy ride

Thanks for your advice @alcy! I had one retail sale of $1,788 recently in this month, looks like I am in the right track...

 

[Kenny How]

GD closeouts is synonymous with "nobody wants these names" so you need to be very careful buying from such a source.

This comment is somewhat true; however, I recently sold one name for $1,788 and I got it from the closeouts..

 

[phaethon]

This comment is somewhat true; however, I recently sold one name for $1,788 and I got it from the closeouts..

Half of my sales were hand reg, too many domainers looking in the closeouts and the quality of names is terrible..

 

[Kenny How]

Half of my sales were hand reg, too many domainers looking in the closeout and the quality of names is terrible..

I got to agree with you on this; there are a lot of trashy domains in the closeouts and perhaps too many domainers looking for deals. I guess if one wants to search for good domains in closeouts, one has to be patient...