Is it really profitable having a large portfolio ?

[lknights1987]

If you own over 2000 hand-reg English dictionary 2-—to 3-word domain names, are you always in profit at the end of the financial year?
If yes Is it enough to cover the cost of living or do you have another job alongside domain investing?

 

[Eagle Domains]

I generally just distinguish between HR, close out, back order, and auction. A drop reg is a hand reg and most hand regs are probably dropped before at some point.

Well Said ! Nicely Explained

 

[Kyle Tully]

100 good names or 10,000 crap names. Your choice.

Or a few thousand decent names

 

[DrJacoby]

I generally just distinguish between HR, close out, back order, and auction. A drop reg is a hand reg and most hand regs are probably dropped before at some point.

Technically, a closeout is also an auction. It's a so-called Dutch auction if I'm not mistaken (price going down until someone buys it).

 

[Kyle Tully]

Technically, a closeout is also an auction. It's a so-called Dutch auction if I'm not mistaken (price going down until someone buys it).

True. But from a useful info pov for other investors I think it makes sense to split them.

 

[Ali Adil]

The more equities you hold in your portfolio, the lower your unsystematic risk exposure.

 

[DrJacoby]

True. But from a useful info pov for other investors I think it makes sense to split them.

I agree. And for the same reason, I think it's fair to make the same split with hand/drop registrations.

 

[Kyle Tully]

I agree. And for the same reason, I think it's fair to make the same split with hand/drop registrations.

At what point does a drop reg turn into a hand reg? How much research do you do on a hand reg to confirm it wasn’t previously dropped?

 

[DrJacoby]

At what point does a drop reg turn into a hand reg? How much research do you do on a hand reg to confirm it wasn’t previously dropped?

For me personally, I would call it a hand reg if it's still available a week after it dropped. But of course, this is highly subjective. In the end though, it doesn't really matter would you call it. The domain and the price you pay is what it is.

I always check Wayback Machine and do a black list check before hand registering a domain.

 

[Inframan]

I own more than 2K hand reg domains, but I have a reason, if you don't, then the best path is to "go grow potatoes" in a kind manner of saying, so if I was not knowing what to do without having a reason on my back, then I would be wasting my time and money.
Why, because in almost 5 years of domain investing I sold only 4 domains totaling 2500K USD but I spent more than 60K on hand regs, so in conclusion without a reason you feed the daddy Registrars, there is no profit only loses, the domains I sold are not related to my reason of domaining, that is why I tell you this.
But if you learn domaining and focus on quality over quantity you can make a profit, you would have to detect the domains which will sell for sure but not reg the ones which will be dropped for sure.
edit 1: specify domaining period.
edit 2: rephrased words to make logic.

Thank you. This is year 2 for me. I've spent $2000+ so far on 100 domains and the renewals. Zero sales. If I put this same $2K in my 401K I would have gained 6 - 10% interest.

I've also spent money on advertising.

The bottom line is I don't have a clue who the serious buyers are.

Year 3 might make or break me. I can't keep renewing 100 domains that may or may not sell.

 

[Inframan]

Oh, man. Normally, people of faith are good at monetizing it, but in your case it is leading you to huge loss. Almost $60k lost, not counting the lost opportunity cost, plus you are on the hook for another $22k/year.

I looked at your inventory and I have no clue why you keep most of those names. On top of that, the word logos don't correspond to domains at all and are just gibberish.

Show attachment 264517

You desperately need a wake up call and here is one:


WAKE UP!!!!

If these logos were created with a FREE image generating AI none of them spell words correctly. This has to be a deliberate program limitation.

Believe me I've modified the prompts a 100 different ways.

 

[Inframan]

It's 100% profitable for registrars. The bigger the portfolio the better for them.

If you want a better answer, post a link to your portfolio. Most portfolios I see are worthless. The most profitable thing the owner can do is remove their credit card from the registrar, never renew and move on in life.

 

[Kyle Tully]

Thank you. This is year 2 for me. I've spent $2000+ so far on 100 domains and the renewals. Zero sales. If I put this same $2K in my 401K I would have gained 6 - 10% interest.

I've also spent money on advertising.

The bottom line is I don't have a clue who the serious buyers are.

Year 3 might make or break me. I can't keep renewing 100 domains that may or may not sell.

Have you gotten feedback on your portfolio and pricing from other experienced investors?

100 names is a tough spot where statistically you might not sell any even if they’re good.

 

[Fryo4life]

Have you gotten feedback on your portfolio and pricing from other experienced investors?

100 names is a tough spot where statistically you might not sell any even if they’re good.

Why? I thought decent 100 names in .COM are supposed to have atleast 1% or 2% STR?

 

[Inframan]

Why? I thought decent 100 names in .COM are supposed to have atleast 1% or 2% STR?

Not all are [COM] maybe 70-80%. I have a few ccTLD's and a few gTLD's.

 

[enterscope]

2000 handregs? Doubt it

 

[Inframan]

Have you gotten feedback on your portfolio and pricing from other experienced investors?

100 names is a tough spot where statistically you might not sell any even if they’re good.

I submitted around 12 [COM] domains and 3 ccTLD's to Media Options. They declined to offer seller side brokerage. That's the extent of 3rd party feedback I've gotten.

The huge problem with some of these domain brokers they have a messenger type email system that doesn't give you a copy of the communication. So you type several domains they now know who you are without any effort. They can also deny ever receiving any communication from you.

I'm already exposed to phishing emails because .CZ doesn't offer WHOIS privacy.

 

[Kyle Tully]

Why? I thought decent 100 names in .COM are supposed to have atleast 1% or 2% STR?

That’s a rough average. But with only 100 names you can easily go a few years without a sale.

 

[Kyle Tully]

I submitted around 12 [COM] domains and 3 ccTLD's to Media Options. They declined to offer seller side brokerage. That's the extent of 3rd party feedback I've gotten.

If you’ve spent an average of $20 on a name they are not in the ballpark any decent broker cares about.

Post a few of your names in the appraisal section and get some feedback from people here.

We’re used to digging through the trash and have a better eye for what type of $20 names sell.

 

[VaibhavA]

Times have changed..

I believe, these are toughest times in domaining, based on my almost 9 years of domaining experience.

While reading the thread I came across @Inframan and @DomainNature posting about their portfolios and losses.

When I started domaining, I sold 100% of my domains in my first year of domaining. Sold 99% here at Namepros.

I sold many domains for losses initially and then some at little profits and then some for even 10x profits within a few days of hand registration.

It was a gr8 learning curve for me.

At the end of first year, with about 500$ investment, I was in profit and since then growing gradually in portfolio and profits.

So, my advice is, sell whatever you have and do not hold onto your domains thinking they are million-dollar domains.

Yes, I firmly believe, you will not get the same profits in today's market as compared to when I started, but, when you start selling, you will understand what other domainers are buying and that is the key to domaining.

To be clearer, if experienced domainers are happy to pay even 20$ for a domain that you HR, you are doing it right. Thereafter, all you need to do is rinse and repeat.

Hope it helps, best of luck!

 

[Kyle Tully]

Times have changed..

I believe, these are toughest times in domaining, based on my almost 9 years of domaining experience.

While reading the thread I came across @Inframan and @DomainNature posting about their portfolios and losses.

When I started domaining, I sold 100% of my domains in my first year of domaining. Sold 99% here at Namepros.

I sold many domains for losses initially and then some at little profits and then some for even 10x profits within a few days of hand registration.

It was a gr8 learning curve for me.

At the end of first year, with about 500$ investment, I was in profit and since then growing gradually in portfolio and profits.

So, my advice is, sell whatever you have and do not hold onto your domains thinking they are million-dollar domains.

Yes, I firmly believe, you will not get the same profits in today's market as compared to when I started, but, when you start selling, you will understand what other domainers are buying and that is the key to domaining.

To be clearer, if experienced domainers are happy to pay even 20$ for a domain that you HR, you are doing it right. Thereafter, all you need to do is rinse and repeat.

Hope it helps, best of luck!

Can you give some example of the types of names you were selling back then and prices? 100% STR is obviously pretty good.