Back when new .com registrations were plentiful, it was exciting to compile lists of new domain names to register. All those combinations of keyword-rich possibilities; you never knew which one could turn into a big moneymaker if resold to the right buyer or even just to hang out to and earn a passive income through parking. There were so many options for ROI or for varied exit strategies.
Fast forward to 2013… According to the Domain Tools’ Whois Source, there are over 108 Million .com domains registered; and the count increases daily. With so few new registrations left, those with value at least, and fierce competition in the aftermarket, how can domain investors realize a return on their investment these days? It’s time to consider a new domain investment strategy.
There are many business models that are serving domain owners well in this changing market. Just like you would speak with a real estate agent before initiating an investment strategy in that market, consider speaking with a domain broker like Media Options. Any active domain broker will be aware of real time, current buying trends and values. Seek out a domain broker with strong ties to not only other domain investors, but also a broker who also has strong relationships with domain-savvy marketing firms and corporations. Media Options has a proven track record successfully brokering domains to these types of end users and more.
Today we would like to discuss one perspective we recommend to some investors. This might be right for you or might not, but it’s worth your time to review. Here’s a challenge: Reconsider (read as “downsize”) the size of your domain portfolio, while increasing its valuation by purchasing better domains.
Now, the term “better domains” may be arbitrary for many people. In this instance, if your focus were on fashion-related domains, then “Styles.com” would be a category killer. Single-word premiums like these come onto the brokerage market often as sellers change business strategies; you could score yourself a great domain like this with branding and development potential, and multiple options for monetization. In some cases, just letting the bottom 10% of your portfolio expire instead of renewing the domain could pay for the cost of a single premium name that goes straight to the top 1% of your portfolio.
Do you think that a single-word premium domain is out of your price range? Well don’t make the assumption that you can’t afford one. Look at your current portfolio, and assess which domains you are thrilled about and which ones you’re not. Are there some that you bought on a whim, and that no longer interest you? Some that you could let expire, or that Media Options might be able to broker for you in order to free up some capital?
As you look towards buying a higher quality investment, make sure that you are honest with your domain broker, who will do his best to negotiate for a domain that suits your budget. If a single-word in your vertical is not available, then consider some great two- and three-word domains that target a more specific audience and could prove lucrative for you. Partner with your broker to access the best domains for your budget and goals.
For the price that you would have paid for a whole list of new registrations, you can probably find a single great domain in your niche around which to build a viable business or purely for investment purposes. From development and monetization, to resale with a profit, you have more options, advantage & momentum from the start with a strategy built around a strong domain name than with a list of untested new registrations. You also have more options when you partner with a broker for an honest, experienced perspective of the current industry.
Let us know what you’re looking for, or sign up for the domain broker newsletter to receive the newest offerings in the domain aftermarket. You could find one that inspires you!