Whether your domain portfolio is small, medium or large, the fact is you’ve probably got some domains that will never sell!
I’ve got thousands of domains – and I know for certain that I will never sell many of them in my lifetime.
We all fall in love with domains that we buy, but after the initial passion has subsided, you sometimes look back and think “why did I buy that”? š
But I don’t beat myself up about it.
There are two reasons why. Firstly, over a period of time, you get to learn from your “mistakes”. And so you become a lot more careful in being generous with your affection and dollars! Your portfolio gradually becomes that much better.
But the second reason is the most important one to my mind.
I Believe In “The Law Of Compensation”
Robert Kiyosaki (well-known author of many books including “Rich Dad; Poor Dad”) made this observation about “The Law of Compensation” :
Having been in the business for almost a decade, these are some of my observations:
- Never assume what is valuable and what is not.
- One man’s trash is definitely another man’s treasure. I’ve sold some domains for good money that I thought I would be stuck with for life.
- I have hundreds of geo real estate domains – but they’re all effectively paid for. Why? Because my average acquisition cost was less than $100 each; and I’ve sold many for 4 figures; and one for 5 figures.
- Same goes for 3 letter domains – I’ve sold many for mid 4 figures; and quite a number for 5 figures.
- We all have “diamonds in the rough”.
- Be prepared to be ruthless when it comes to renewal time. If you genuinely don’t believe that you can get your initial cost back plus a percentage, then let them drop.
- When you buy something today, ask yourself this question. “Is there definitely more than one buyer out there that will buy this domain for my cost plus a small percentage?”. If you can’t convincingly answer that in the affirmative, then don’t buy.
- Don’t pretend to yourself that value lies in developing the domain. Many of us never get around to it!
Do you have any thoughts or suggestions you’d like to share?
It is tough as regos come around quick and they can add up on costs i have regod many and thought why did i get that , many years ago i regod topshelfpo*n.com and thought why had it for 11 months then sold it for $5000 pounds so you never know , but i do clean out the rubbish as people say it is only $10 but times that over alot of names it adds up and takes away form the profits of the good onesĀ
“We all fall in love with domains that we buy, but after the initial passion has subsided, you sometimes look back and think āwhy did I buy thatā?”
Oh man, I have been doing a LOT of that lately. If you see any good .net and .net.au’s dropping in the next few months, they were most probably mine. And yes, I know using the word “good” with the words .net and .net.au is an oxymoron. Which is quite fitting, because you have to be a moron to buy a .net or .net.au – but you don’t realise that in your first few months of theĀ domainer learning curve.
Now thatĀ my first year has passed, I have beenĀ dropping around 5 names a day. This will continue for another few months, I’m sure. So I am only left with the cream, and names I REALLY plan on developing.
@Robert
I do believe there is an exception to this rule! Yes, that’s me saying it. š
If you hold a premium .com.au domain name, and you see the .net.au come up, then my advice is to grab it (if you can get it reasonably cheaply). That way; if and when direct registrations are introduced; you should be in the box seat when it comes to having first dibs on the .au.
That’s assuming of course if some priority of rights to existing holders is agreed on!
And before any asks me the likelihood of that, your guess is as good as mine!
Another good article Ned. I bought lots of .net.au domains and wish I hadn’t. Starting to learn the ropes now.
@Scott – possible exception to the rule. Read above.
Letting domains expire is honestly one of the hardest things for me. I haven’t come to terms with this one yet, I may never…
You can compare it to a professional stock trader. He/she knows they are going to loose x% of their trades and even budget in some bug losses. You need to train your self to expect these (as hard as it is).
@Jack – good points.
The fact is, if you’re a domainer, you have to have stock so you can have a good display.
And just like any other seller of goods – be you a retailer or wholesaler – some things just won’t sell for any variety of reasons. That’s called “shrinkage”. š