I'm still building my portfolio, currently at ~60 domains but going to drop more than half of them because I realized they are crap. Got my 1st name 3 months ago so I'm still new in this, have 0 sales in my books.
True.
OK so let's put it this way:
- 1,600 domains regged 6-7 months ago, let's say you have 6 more months before renewals.
- 30 names sold at 400 USD a piece has returned 89% of your initial investment, this makes your investment at more than 25,000 USD, meaning you buy each domain for 15 USD. But you said that you buy your domains at a discount so I guess that you're selling for lower than 400 USD. So I will disregard the 89% bit and put a 5 USD average per name. 1,600 names x 5 = 8,000 USD initial investment.
- 30 names sold, let's say you will sell 30 more names come renewals, that will be 60 names. 60x400= 24,000 USD
- Come renewals you will have 1,540 domains. If you find a registrar willing to transfer your domains for let's say $7/name, that's 10,780 USD
So by the end of the 1st year, you would have paid ~19,000 USD on regs+renewals but received 24,000 USD in sales. That's 5,000 USD in the bank and 1,540 domains renewed and polished for the coming year. Now remember those 60 names that you sold? These may be your best names and you probably under-sold plenty of them. You can only sell a name once (which really sucks) and you are left with 1,540 names that may not ever sell in the coming years.
That's based on a 1,600 names portfolio, now multiply these numbers by 6.25 and let's see if it is worth the risk.