A (relatively) overlooked data point when looking at domain name sales

When I first started buying and selling domain names I used the current top domain sales as my inspiration. I saw some nice two-word .COMs that were selling in the five figure range and went to town. Of course I quickly learned that I had bought a bunch of junk, it wasn’t just all one-word .COMs or two-word .COMs, it’s the quality that matters. But with quality comes the understanding that to get top dollar your time horizon has to be a lot longer than most.

And this is where new domain name investors get confused when they’re looking at lists of domain sales. Yes – the sales numbers are real, but the data you’re not seeing is the amount of time the domain owner was willing to say no, be patient, and wait for the right buyer to come along. Mike Mann for example usually hangs onto a name for more than five years before it sells:

(One thing to remember is that Mike Mann needs to sell about $2.5+ million worth of domains per year to break even and that he is NOT a flipper. The average holding time for his sold domains is usually more than 5 years.) (Source – OnlineDomain.com)

So here’s what happens. People look at domain sales, try to buy very similar names, then get frustrated a year or two later when “they haven’t sold yet!” What you have to realize is that you might have bought a great name, but the right buyer isn’t there for it now…the question is did you buy the name initially with the idea of waiting five or more years for a buyer?

If not then you might not be completely realistic when you’re trying to industry pros are doing. Rick Schwartz, the Castello Brothers, and many other top industry veterans are known for waiting for the right buyer and not looking for a quick flip when it comes to their top sales.

The question is, are you being realistic with yourself when you buy a domain that looks “almost exactly” like a domain that sold for a small fortune last week? Most people are not, especially in the beginning, and I know I wasn’t being realistic for years.

What do you think? Should domain name investor be paying attention to how long someone had a domain before it sold when looking at domain sales?

{ 2 comments… add one }

  • Joe November 13, 2017, 8:23 pm

    I understand the great domainers who can wait more than 5 years to sell their best premium domains, what we do not know that each month sell 1000 domains at $ 1500 or so and not give news that the market and the domain industry does not arrive to think that they only sell less than 5, 6 and 7 $ figures each domain for what they have us used to sell.

    I, like you and many like mine and those of your generation, have to move every month looking for the buyers believing that by very interesting domain of 4 numbers they will give you $ 6 figures if it ends in 99 and give 5 $ figures and you very good, they after two months receive more than 6 $ figures the same domain, what has value in every market is the name of the person who sell domainer.

    I have 4lelectriccar.com and byethereum.com, offer as evidence to large investors to 6 $ figures and I must sell to 5 $ figures so that they later with their name on the front pages of the news always sell for 7 $ figures, The buyer believes that it is more real than ours that our same premium domain name.

    Reply
  • John November 14, 2017, 11:23 am

    We recently bought Wkii.com obviously because of Wiki.com but we think it will have future value. We’ll see.

    Reply

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