When I first started selling domains I had all these weird rules for myself. I told myself things like, “I’ll never sell a domain name for under $1,500 because someone out there can definitely afford at least $1,500, and heck that money isn’t going to change my life in any way.” After a while, I realized those rules were actually pretty stupid, since domain investing wasn’t a full-time business I was running, it was an investment vehicle I was using instead of your typical investment vehicles – real estate and stocks.
Fast forward to today and I honestly don’t have any hard and fast rule except that I need to at least double my money on every sale I make. Anywhere else that would sound like the greediest statement in the world, but in the domain world I think most people would say I leave a lot of money on the table…and at times I probably do, but I’m ROI focused.
I’m not a domain expert, and as someone that doesn’t spend my time focused on domain names…I’ll probably never be an expert. What I can do is try to be a good investor and hit the goals I set out for myself, and hopefully also exceed the ROI I’d make in real estate or stocks. I just sold a domain today for $5,000 (around $4,200 after Sedo’s commission) and a friend of mine in the industry told me I could have sold it for 3x that. But I paid $99 for the domain, and including renewal fees I’m all in for around $200…so at over 20x ROI, I’m okay leaving that money on the table to make the deal happen now.
What do you think? Should you focus on getting top dollar for your domains or instead focus on getting a good ROI? I want to hear from you. Comment and let your voice be heard!