I’ve sold $4,000 in domain names in the past two weeks.
That’s three, count them three domains for 4 grand in 14 days.
I hold about 600 at the moment with development plans for 50 of them. And when I say development, I mean making businesses or web properties of them.
So if I’ve got all this other stuff going on, why do I keep scanning JustDropped? Why do I peruse Godaddy Auctions late at night before I go to bed?
Exposure to Crazy Upside/ROI
Because good domains are worth money and they can make you a ridiculous ROI if they sell. In other words, I like the exposure and ceiling they give me.
I can’t do this in the stock market. Between the fees and the price of actually buying of the stock, it’s super expensive to get in the game – and even if I could plop down $10k to play the stock market, how do I know if a company is going to float or go? I have no clue.
But with domains, if I pick out a bunch of good looking Easter eggs in my basket, odds are at least one of 50 is going to make me all of my initial investment back and then some.
Passive Income Tumbles In
And beyond the time spent searching, domains are mostly passive income for me. They just sit in my Godaddy account (or Name Silo, Namecheap, Name.com, or wherever) and hopefully attract eyeballs from my Godaddy auction and premium listings.
Occasionally, I am motivated to sell and move inventory but the sales that come from me outbound emailing have never reached $1k (I think $800 is my highest outbound) and don’t come close to comparing to when I get the email of interest ($5,000 is my largest single dollar sale and I’ve hit it twice).
A Mild Addiction
I’ve mostly broken free from the enslavement of domaining but I can’t help but be wired to think of registering a domain when I think of a good one or am just exploring marketing options for businesses and/or websites I plan to work on.
And every now and then, I’ll have a JustDropped spree where I find a handful of gems that fell through the cracks.
It’s a little like opening a pack of baseball cards used to be.
Those are the three primary reasons I keep buying domain names. If you can figure out what makes a commercially viable domain, it makes sense to build a 50-75 domain portfolio and leave them priced to sell on Godaddy, hoping someone comes along and snags 2-3 a year.