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”? 🙂
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?