Ebbs and Flows of Domain Investing

My domain investment portfolio has grown from around 500 domain names to around 2,000 domain names in the last several years. Even at that size, getting consistent domain name sales is a challenge. Using a 3% annual sell through rate as a benchmark, that would equate to around 60 domain name sales a year – or about one sale a week on average.

The two most exciting things for me in the domain space is acquiring a great domain name at a reasonable price and selling a domain name for any price. Yeah, a six figure deal feels better than a $1,000 sale, but an unexpected $1,000 deal gives a nice jolt of dopamine on an otherwise uneventful day.

With my still relatively small portfolio, I don’t usually see consistent sales. I might get 3 random sales in a week and might go two weeks without a single sale. That’s the way this business has been for me for many years. I am still not adjusted to the ebbs and flows of domain investing.

A dearth of sales for of a couple of weeks is exacerbated if I am also not making good acquisitions. On average, I probably acquire 5+/- domain names a week at auction or in private, but these don’t really move the needle all that much.

When I am facing a deal slump longer than a week, it can be frustrating. Sometimes I will do some outbound marketing on a sub-$5k name to try and get the deal flow faucet running. Sometimes I will shift my focus to a family or personal pet project to take my mind off of a lack of sales.

Domain investing can be a roller coaster ride. One minute I am high-fiving (myself) when I’ve come to terms on a deal, and the next minute I am cursing under my breath because the buyer backed out or is running into problems.

This business has been consistently inconsistent for me since I started, and I have to remind myself that things have generally worked out pretty well over the mid to long term. If I hold good assets, there will be buyers, I tell myself.

If you’re running to a period of no sales, you’re not alone. It’s something most investors face.