IT.COM

discuss If you had to let go of some domain names, what criteria would you use to make the decision?

NameSilo
Watch

DDD.COM

Upgraded Member
DDD.COM
Impact
75
Many domain investors find that their portfolio of domain names grows over time, and it is not always a balanced process of acquiring and selling. Owning more domain names often means having more sales opportunities and the potential for greater investment returns. However, when the number of domain names reaches a personal threshold that is difficult to manage, it becomes necessary to seek ways to reduce expenses.

The simplest approach is to sell at a lower price or abandon the renewal of certain domain names (typically those registered manually). Some investors may find themselves in a situation where they purchased all their domain names for investment purposes and now need cash flow, leaving them no choice but to sell at a price below the cost.

If you have many manually registered domain names and are facing significant annual renewal costs, you must make choices and let go of some domain names. How would you make these decisions? What factors would you consider when determining which domain names to let go of and which ones to retain?

Here are a few personal viewpoints I would consider:

  1. Does the domain name have significant traffic?
    In my opinion, the natural traffic a domain name receives is a crucial indicator of its value. This should be the primary consideration. If a domain name generates natural traffic, it not only demonstrates its own value but also offers the opportunity to earn some revenue through parking or other means. Though the income may not be substantial, it can cover the renewal costs.
  2. Does the domain name have a corresponding brand?
    Ultimately, a domain name's destination is its end-user. From my perspective, the "end-user value" is the most important aspect of a domain name's value. If a domain name has a corresponding end-user, it should not be abandoned because you never know if someone might want to purchase the domain name the day after you let it go.
  3. Can the domain name be sold to someone else?
    If the domain name lacks end-user value, is there a possibility of selling it to other investors? As a domain name holder, you should understand your initial "intention" when registering the domain name and how you feel about it now. Does the original idea still hold up in the current internet landscape? Can it be sold to other investors?
  4. How much investment cost has been incurred for the domain name?
    Domain names in an investor's portfolio are often accumulated over time, with varying acquisition costs and renewal periods. Before letting go of a domain name, it is worth calculating how much investment cost has been put into it. Keep in mind that if you abandon a domain name, all the expenses incurred for it will go to waste.
 
4
•••
The views expressed on this page by users and staff are their own, not those of NamePros.
How much investment cost has been incurred for the domain name?
Domain names in an investor's portfolio are often accumulated over time, with varying acquisition costs and renewal periods. Before letting go of a domain name, it is worth calculating how much investment cost has been put into it. Keep in mind that if you abandon a domain name, all the expenses incurred for it will go to waste.
This may lead to a bad decision. Please read https://en.wikipedia.org/wiki/Sunk_cost
 
5
•••
1/ Traffic is great if it's organic. Many people confuse bot traffic as organic traffic. However, a domain with high traffic may not be sold at a high price to the usual end users — you'll have to either convince SEO companies about the traffic or build content sites yourself that reflects the intent of those organic visitors. Monetization of high traffic domain names are different from other types of domain names.

2/ If your domain name has exactly one end user as a potential customer, then that may actually be a bad news. If you can't convince that one user, then it's more than likely that no one else is going to buy it, ever.

3/ Investment cost has nothing to do with whether or not you should drop a domain name. One must have a set of rules that determine the actual perceived value of the domain name — whether it's hand registered or bought with $10k has nothing to do with the value of that domain name now or in the future. Cost calculation is needed for accounting and may be useful for price setting, but dropping is a different ball game all together, IMHO.
 
3
•••
Current demand and foreseeable 5 - 10 years future demand + my current cost opportunity of money
 
Last edited:
1
•••
Back