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.

 

[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.

 

[Kingslayer]

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.

So would you say spending 3 million on renewals per year on junk/average domains (possibly to break even or make a small profit) is a great business plan and worth copying?

Well i can only speak for myself, I wouldn't copy that business plan even if i had the money and I'm sure many other of the big fish investors would say that too, infact they already have. I think M.Mann doing what he does is more because of his love and possibly addiction to domain names rather than him (hand on heart) thinking it's a fantastic business model.

Best business plan (if you have the backing) is to buy 1 or 2 real top quality single word .com domains with view to making 6 or 7 figure profit on these and if you do, put money away and reinvest in another single word .com, again.

Thousands of investors have lost money buying junk (myself included at first), few have lost money buying 'quality'.

Buying quality is the business plan which most have been successful with, so if most have been sucessful doing that rather than just handregging loads of poor to average domains, then the answer to this thread is 'quality' makes more sense than 'quantity'.

 

[boker]

So would you say spending 3 million on renewals per year on junk/average domains (possibly to break even or make a small profit) is a great business plan and worth copying?

Well i can only speak for myself, I wouldn't copy that business plan even if i had the money and I'm sure many other of the big fish investors would say that too, infact they already have. I think M.Mann doing what he does is more because of his love and possibly addiction to domain names rather than him (hand on heart) thinking it's a fantastic business model.

Best business plan (if you have the backing) is to buy 1 or 2 real top quality single word .com domains with view to making 6 or 7 figure profit on these and if you do, put money away and reinvest in another single word .com, again.

Thousands of investors have lost money buying junk (myself included at first), few have lost money buying quality.

Buying quality is the business plan which most have been successful with, so if most have been sucessful doing that rather than just 1 handregging quantity, than the answer to this thread is quality makes more sense than quantity.

No, what I'm saying is that he sells lot's of xxx.-xxxx even xxxxx worth of domains, to cover acquisitions,renewals and others cost's, so when he sells an xxxxxx or more, that's pure profit. The plan of acquiring 1-2 great 1 word domains is that over 90% of them are already owned by companies or domainers with big pockets, so you will need to pay big. To make a profit on that, you will need to wait lots of years. What seems to work, is to try to acquire quality domains from the other 10% who own them and don't have big pockets or don't know the value of them, but that's not so easy how it looks. You need to be very lucky, to contact the right person at the right time and contact thousands of people , before you can find a domain so underpriced, so that you could afford to wait years. Some are buying at 50k and sell at 100k or something like that, but I would say you could get burned many times like this. What you need, is to acquire a domain that is under priced and has a retail value of 10 times more, to make sure you are safe, but that's the hard work.

 

[King]

Quality is better but then again define quality in a domain, there are many domains some people including me would consider them garbage and not even worth the reg fee but then an end-user purchases it for a few grand.

 

[Jv1999]

Some friends of mine mention to me their portfolio makes up maximum 100 domains... yet they make regular 5k, 4k sailz per year. They said the key is just buying quality domains... and I'm not talking about AB who bought News///co for like 10k.

This friend bought hand reggae, some expiring auction wins.. catching... he did normal stuff. Nothing too over the top. He basically just knew how to pick ultra quality domains.

So i would say quality goes a long way...... but to reach that kind of quality requires years and years of experience.

I tried going the quantity route... and let me tell you... you'll make sailz, but mostly mid-xxx.