opinion Quantity VS Quality

[jamaltq]

Hello guys
If you have a limit budget, what you prefer to invest in (not considering short liquid domains)?
A big quantity domains (low to mid quality), or few good quality domains.
What I think is that if you own a large portfolio domains with big variety , you have a chance to sell more than if you have a small one.
You can notice that many low quality domains sold daily for very good price, some of them selling for even thousands, while they are not really worth the hand reg. fee.
Any feedback with thanks.

 

[Kuffy]

Why not have two portfolios - an investment one of high quality names, and a trading one of usable traffic names. You never know, one of the flip names may turn into an investment name - usually just after you have sold it.

 

[Smiles76]

Truth is, you have to have both. If you look at all the really successful domainers, they own extremely high quality domains but they also own a ton of domains in general which increases their likelihood of sales.

 

[NameOmnia]

I feel like I'm better at finding value in the lower-end of the market, so I guess that puts me in the Quantity camp.

I'm not comfortable enough with my knowledge of higher reseller prices to risk all my cash on just a few names at that level. The risk I see there, with a limited budget, is that you get stuck with a few names that you can't even resell for a profit, and you end up having to (hopefully) wait for an end-user to come around.

So... mark me down for Quantity

Same here. I am not the kind of person wanting to invest thousands in one name, I would not sleep! lol

I've hand registered and kept 400-500 domains over the last few years but this year I'm dropping at least half and purchasing after market names instead. I'll still save a couple of thousand a year by dropping that many, assuming they were never going to sell in the first place This is partly due to the pound falling here in the U.K. and therefore the cost of renewals nearly having doubled in the last 4/5 years.

I honestly have done well with both hand registered and aftermarket and by aftermarket I mean closeouts or bargain sales here on NP.
Have you registered mainly new trends? Because that could explain the outcome.

If you sell your names for dollars through the name silo market place, then you can have your proceeds credited to your account, and this saves the double currency conversion costs. If you sell one that you would have dropped for $10, then that pays for a renewal or new registration.

I did not know that the sale proceeds were credited on the account, I thought they were only paid to PayPal etc.
It seems an interesting feature though, given that NameSilo is my favourite registrar.

I think though that quality over quantity is not enough of a specific parameter..I mean, outside of the obvious great domains ( which are definitely not for sale for x.xxx ) what would you / we define a quality domain?

As per quantity.. I am here reducing my portfolio and I have fewer than 500 names..I know people who own xx.xxx - xxx.xxx so what is quantity?

Very interesting conversation.

 

[mwzd]

With 10k, spread it around, buy quality names in the $300-$1000 range (yes they're available, specially in the aftermarket) to a max of $3-4k.

Spend another 1-2k on hand regs / drops / closeouts, keep balance in reserve for deals, but do your due diligence when buying these, make sure the domain has a clean history and from a reputable seller.

You really need to know what is quality and what sells to even spend $1 on a domain, else it's like buying a lottery ticket.

 

[Kuffy]

Now here is a thought -

If a name is on a drop list or an expired list, then somebody thought it was good enough to register.

 

[boker]

These are the top 50 sales from past week, from namejet and dropcatch, assuming that they are mostly domainers who buy from these venues....also, I have excluded numeric and short domains, because mostly they are traded between domainers. So this is how is supposed to look the average domainer's portofolio, with buys of xxx-xxxx? Except a few of them, I would not buy most of them, because I think that the ROI will not be high enough to help you stay on profit year by year. I don't think that aftermarket purchase equals value....sometimes a good hand reg of 8$ could bring you much more ROI than a marketplace purchase. I think your buys should be counted as wise if they bring enough ROI to make sense, no matter if they are hand reg's or aftermarket purchases.

Domain Price Date Venue
flatchat.com 1,100 USD 2017-08-10 NameJet
niaochong.com 1,069 USD 2017-08-10 DropCatch
peoplecentral.com 898 USD 2017-08-10 NameJet
btcniu.com 877 USD 2017-08-10 DropCatch
fishermedia.com 670 USD 2017-08-10 NameJet
dogrepellent.com 600 USD 2017-08-10 NameJet
sirpay.com 589 USD 2017-08-10 NameJet
cityventure.com 567 USD 2017-08-10 DropCatch
serintel.com 555 USD 2017-08-10 DropCatch
industrydesign.com 510 USD 2017-08-10 NameJet
ranova.com 496 USD 2017-08-10 DropCatch
wwtech.com 439 USD 2017-08-10 NameJet
cruisingdirect.com 427 USD 2017-08-10 NameJet
cartila.com 340 USD 2017-08-10 DropCatch
footballtours.com 335 USD 2017-08-10 NameJet
bitcointip.com 299 USD 2017-08-10 NameJet
flagfen.com 298 USD 2017-08-10 NameJet
paweb.com 292 USD 2017-08-10 NameJet
snibston.com 265 USD 2017-08-10 NameJet
brainmysteries.com 261 USD 2017-08-10 NameJet
kunban.com 259 USD 2017-08-10 NameJet
lyluxin.com 244 USD 2017-08-10 DropCatch
avtronics.com 240 USD 2017-08-10 NameJet
universalbrand.com 229 USD 2017-08-10 NameJet
glaub.com 224 USD 2017-08-10 NameJet
allprinter.com 184 USD 2017-08-10 DropCatch
itvirtual.com 184 USD 2017-08-10 DropCatch
thiskiss.com 165 USD 2017-08-10 DropCatch
biaohei.com 164 USD 2017-08-10 DropCatch
patravaditheatre.com 160 USD 2017-08-10 DropCatch
artrex.com 157 USD 2017-08-10 DropCatch
infomgmt.com 141 USD 2017-08-10 NameJet
outmore.com 3,300 USD 2017-08-09 NameJet
shabang.com 1,525 USD 2017-08-09 NameJet
antspay.com 1,402 USD 2017-08-09 NameJet
softwall.com 840 USD 2017-08-09 NameJet
kanfu.com 810 USD 2017-08-09 NameJet
copyclub.com 593 USD 2017-08-09 NameJet
youthbusiness.com 559 USD 2017-08-09 DropCatch
northbayrealestate.com 502 USD 2017-08-09 NameJet
cungcap.com 500 USD 2017-08-09 NameJet
debtflip.com 479 USD 2017-08-09 NameJet / TLDPros.com
gokom.com 450 USD 2017-08-09 NameJet
alwaysfun.com 448 USD 2017-08-09 NameJet
coineye.com 444 USD 2017-08-09 DropCatch
tongzhimen.com 429 USD 2017-08-09 DropCatch
dreamheart.com 410 USD 2017-08-09 DropCatch
phonescore.com 385 USD 2017-08-09 NameJet / TLDPros.com
fallenfootwear.com 345 USD 2017-08-09 NameJet
pvcwindows.com 285 USD 2017-08-09 NameJet

 

[NameOmnia]

These are the top 50 sales from past week, from namejet

I don't think that aftermarket purchase equals value

Agreed & Agreed...especially after knowing that domain owners, relatives, friends etc were bidding on their own names on NJ inflating the price. And especially after some big names have openly supported such practice.

 

[Kuffy]

I think there are only 2 that I would have picked up off a drop list.

pvcwindows and debtflip

Maybe I really am out of touch with the market.

 

[jamaltq]

If you check the domains daily sales report you will find that 80-90% of them, low quality domains.

 

[Kuffy]

If you check the domains daily sales report you will find that 80-90% of them, low quality domains.

So my names are too good for people to buy then.

 

[jamaltq]

So my names are too good for people to buy then.

Sure

 

[Kuffy]

I'm starting to get the idea. "tower bridge" gets lots of searches on Google, so if I registered tow-a-bridge.com that would be a premium name, and I could sell it to a motor recovery company.

 

[lock]

Put the 10k into one subject and buy out the industry.

 

[Kuffy]

Put the 10k into one subject and buy out the industry.

Let me know the topic, and I'll put together a bulk deal of " quality, premium and unique " names.

 

[imadoer]

You really need both. Obviously you are better off with quality domains over crap, but if you only have a handful of quality domains then you can face a situation where you basically have dead capital.

With quality + quantity you have more fishing lines in the water. Sales are far more likely.

The key is to know what "quality" means and how much to pay for it.

Brad

@bmugford Hit the nail on the head..

 

[hookbox]

I really think you need to spread it out. If I started all over with 10k I would definitely buy names in the $250-$500 range and also handreg a bunch of names. I would never ever take that 10k and buy just one name. You may end up sitting on that name way to long and end up having to sell it at a loss if it takes to long to sell. Spread it out. 50% spent on handregs and 50% spent on good names in the $250-500 range.

The handreg group is good for banging out $500-$1,000 sales while you sit a bit on the $500 names that could get you possibly $5,000 per name or more.

A good mix of quantity and quality works best.

 

[Zarine Khan]

- Quality is a measure of excellence or of a state of being. It describes something, either of how it was made, or how if is as compared to others.
- Quantity, on the other hand, is the extent, size, or sum of something. It is countable or measurable, and can be expressed as a numerical value.

 

[Haykay2005]

I really think you need to spread it out. If I started all over with 10k I would definitely buy names in the $250-$500 range and also handreg a bunch of names. I would never ever take that 10k and buy just one name. You may end up sitting on that name way to long and end up having to sell it at a loss if it takes to long to sell. Spread it out. 50% spent on handregs and 50% spent on good names in the $250-500 range.

The handreg group is good for banging out $500-$1,000 sales while you sit a bit on the $500 names that could get you possibly $5,000 per name or more.

A good mix of quantity and quality works best.

Exactly. That's the way to go

 

[HotKey]

Was going to start a thread on this, but lo and behold..

Quality vs Quantity.. the age old question. Superb answers by both Kate and Mugford.

Can only add, may also depend on one's commitment, naming style, and budget.

• Are you a weekend warrior, or a weekday grinder?
• Are you adept at thinking up names in your brain, or do you need scripts for bulk searches?
• Do you monitor drop lists all day every day, or do you focus on single names at a time and put in when the time is right?
• Is this a business for you, or a hobby?
• What about budget- are you looking to cover as many domains in an up and coming niche as possible and have the funds to do so, or are you forced to be picky?

I think all of these factor in to what people choose when buying domains, and whether said domains fall into a quality over quantity question. I think it is clear by the many bitcoin/crypto threads, vaccines, cannabis, vr, robots etc threads we see so many members partaking in, even just general hand-reg's not in any category, we have many members that are quite comfortable with just getting a domain that is somewhat related to said niche; others that simply won't touch an odd brandable, typo or 2-3 word descriptor-type name.

One of the key factors as well is when you came across a potential niche to invest in. Often many areas don't get attention until it is too late for investors, thus we are just playing catch-up. Doesn't mean you can't find a quality name, but at that point it does often become a quantity game over quality.

Whatever one's MO, I think it's best to use what is profitable over a given time, say a year or two. If you find yourself constantly getting into a new niche with tens or hundreds of names because it seems "hot" but a year or two later the sales just don't justify the means, than it's time to gravitate towards making wiser decisions on initial investments.

We can always stand behind a quality name. My preference and what I feel most comfortable working with is a smaller portfolio geared towards folks looking for a domain to base their business on, permanently. Thus in my mind, quality. Now, quality can be subjective of course. And sometimes a quality domain can take years to sell, whereas a quick fix kind of name can have rapid turnovers. In the end, there is probably no right or wrong method, just what works for you personally.

 

[frostify]

I think too many beginners make the mistake of choosing to have a LOT lower quality domains thinking 'one of them is bound to hit if I have to many' when this is simply not the case. You're much better off having 1 domain worth $1000 than 10 names worth $100 each for example.

$1000 domain -> Potential to flip for higher margin with $10/year renewal
x10 $100 domains -> Less margin to flip and $100/year in reneals ($10 x 10 domains).

In the example above you'd lose 10% of your portfolio value per year as where the single name would just be 1% cost per year. If you're investing in domains, I highly recommend buying quality over quantity.

I've slowly begun dropping or liquidating my lesser names to move more towards one-word domains, geographical locations, and 4L .com's.

 

[boker]

I think too many beginners make the mistake of choosing to have a LOT lower quality domains thinking 'one of them is bound to hit if I have to many' when this is simply not the case. You're much better off having 1 domain worth $1000 than 10 names worth $100 each for example.

$1000 domain -> Potential to flip for higher margin with $10/year renewal
x10 $100 domains -> Less margin to flip and $100/year in reneals ($10 x 10 domains).

In the example above you'd lose 10% of your portfolio value per year as where the single name would just be 1% cost per year. If you're investing in domains, I highly recommend buying quality over quantity.

I've slowly begun dropping or liquidating my lesser names to move more towards one-word domains, geographical locations, and 4L .com's.

In the same time, it's much harder to find the 1k buyer, than 10 buyers for $100. You could have one great domain( there are thousands for sale, some for 20 years now waiting for a buyer) and wait 10 years for a sale( or never) or you could have 10 domains you sell for $100 and use that cash to buy even more, sell again...and in 10 years you should make more than the other with a valuable name, who waited 10 years. Ideal will be to have 100 or even better 1000 quality domains or 10k-50k lesser quality, but both ways, it's hard to reach there for an average domainer.

 

[Kingslayer]

Even though he does own some quality domain names, I think there's only 1 person who as ever really been sucessful with quantity over quality and that is M.Mann.

I'd take quality any day, i would gladly own just 1 domain name like Casino dot com over 10,000 average domains and owning a single word .com like that (and making no sales) people would know your a top investor, a multi-millionaire in waiting (if not already) and would like to hear what you have to say, more so than people who make several average sales a year.

 

[boker]

Even though he does own some quality domain names, I think there's only 1 person who as ever really been sucessful with quantity over quality and that is M.Mann.

I'd take quality any day, i would gladly own just 1 domain name like Casino dot com over 10,000 average domains and owning a single word .com like that (and making no sales) people would know your a top investor, a multi-millionaire in waiting (if not already) and would like to hear what you have to say, more so than people who make several average sales a year.

I think that you are missing the big picture. Mike probably has a good few quality domains in his portofolio, but in the same time he has around 300k at most average domains, so he is playing at both sides, a few quality and lot's of quantity. Having owned only casino.com, that means that you will have to pay a big price to acquire it, because everybody who owned these type of names in the beginning, they made lot's of other lower quality sales to survive and wait for the big paycheck. So, acquiring now the domain and owning only one, will mean a big investment and in the same time not to much experience, so I'm not sure if people will follow you. At a lower scale, it's the same as the guy who invested mid xxxxx acquiring naturalbeauty.com(or something like this) and after a few years waiting, he sold at a big loss. You will have something valuable, but you will pay a lot of value to have it, so I'm not sure that you can invest millions and wait 10-20 years to make money...nobody knows what will happen in 2040.

 

[Kingslayer]

I think that you are missing the big picture. Mike probably has a good few quality domains in his portofolio, but in the same time he has around 300k at most average domains, so he is playing at both sides, a few quality and lot's of quantity. Having owned only casino.com, that means that you will have to pay a big price to acquire it, because everybody who owned these type of names in the beginning, they made lot's of other lower quality sales to survive and wait for the big paycheck. So, acquiring now the domain and owning only one, will mean a big investment and in the same time not to much experience, so I'm not sure if people will follow you. At a lower scale, it's the same as the guy who invested mid xxxxx acquiring naturalbeauty.com(or something like this) and after a few years waiting, he sold at a big loss. You will have something valuable, but you will pay a lot of value to have it, so I'm not sure that you can invest millions and wait 10-20 years to make money...nobody knows what will happen in 2040.

Hence why i said "Even though he does own some quality domain names"

 

[boker]

Hence why i said "Even though he does own some quality domain names"

Yes, but in the same time, you said: 'ever really been successful with quantity over quality'. He wasn't been successful just because of quality, he paid around 3 million renewals a year and more on acquisitions using his quantity domains and not the quality. The few quality domains are what's in front of the shop, the hard work is done by the quantity. It's the same as the shops selling cheap items just to cover the rent and wages, but they know that when they will sell the high priced items(not every day) that will be their profit.