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Here are the details:
1) What I refer to as a premium domain is a name that can be purchased for $250 in an auction and has the potential to sell for $2000-$3000. The upper bound for this name being $4000 or so.
2) The second list is a set of hand-registrations which each cost $5 and you may register 50 hand registrations for the same price. Consider a scenario where you are good at hand registrations.
The difference between the two approaches is the risk:
While in the first case, the name is a decent one, the chances of selling could be high. However, since it is just one domain, if it doesn't sell, we are looking at a multi-year hold and no cash flow.
In the second case, the risk is that they are all hand-registrations, and chances of selling such names are usually low, given the low sell-through rate of hand-registrations. However, since there are more number of names (and given that you are pretty good with hand-registrations), the risk is low in terms of having a cash flow.
However, if you have to go for a multi-year hold, the charges and the overall cost may be high.
Which one would you choose and why?
I am particularly inclined towards the hand registrations because of two reasons:
1) Potential to diversify the risk, given that at least one of the 50 hand regs may sell for $999.
2) Potential to outbound and close some of the other domains for some price.
This strategy may not exactly make the $3,000 which the one premium domain with potential can make but, chances are, that I may end up making $1500 from the hand registrations at a lower risk than $3,000 at a higher risk (if at all).
But then again, this can be argued both ways. What's your pick?
1) What I refer to as a premium domain is a name that can be purchased for $250 in an auction and has the potential to sell for $2000-$3000. The upper bound for this name being $4000 or so.
2) The second list is a set of hand-registrations which each cost $5 and you may register 50 hand registrations for the same price. Consider a scenario where you are good at hand registrations.
The difference between the two approaches is the risk:
While in the first case, the name is a decent one, the chances of selling could be high. However, since it is just one domain, if it doesn't sell, we are looking at a multi-year hold and no cash flow.
In the second case, the risk is that they are all hand-registrations, and chances of selling such names are usually low, given the low sell-through rate of hand-registrations. However, since there are more number of names (and given that you are pretty good with hand-registrations), the risk is low in terms of having a cash flow.
However, if you have to go for a multi-year hold, the charges and the overall cost may be high.
Which one would you choose and why?
I am particularly inclined towards the hand registrations because of two reasons:
1) Potential to diversify the risk, given that at least one of the 50 hand regs may sell for $999.
2) Potential to outbound and close some of the other domains for some price.
This strategy may not exactly make the $3,000 which the one premium domain with potential can make but, chances are, that I may end up making $1500 from the hand registrations at a lower risk than $3,000 at a higher risk (if at all).
But then again, this can be argued both ways. What's your pick?