I was talking to a friend today who is looking at buying a portfolio of .IO domain names. We’ve all seen .IO domains command higher and higher prices over time with domains like Jackpot.io selling for close to $50,000 this year and one-word .IO’s going for over $1,000 at Park.io every day.
While a premium one-word .IO domain can sell in the $10,000+ range, once you have a bunch of them together in a portfolio, the price goes down. Of course this is true for any domain extension not just .IO. I know many investors that have bought and sold .COM portfolios and on a per-domain basis, names sell for a lot less than they would individually.
I’ve heard some people say that when you sell domains as a portfolio you essentially take a 1/10 haircut, i.e. you’ll sell the domains individually for a tenth of what you normally would at retail. That being said I’ve seen ranges from 1/5 up to 1/20th so it’s hard to know if there is really one magic number.
Assuming a portfolio has mostly premium one-word names, what do you think a per-domain price would be in .IO? Since it’s not fair for me to ask the question without answering myself, I’d say somewhere in the $750 – $1,500 range per domain, so a 100 domain portfolio would sell for $75,000 – $150,000. This is just a guess, and no there really is no right answer here, it depends so much on the specific names in the portfolio.
Portfolio sales can be a great win for a domain investor, but it all depends on what they pay per domain and what their expectations are around both price and timing. Most people I know who buy portfolios usually find a handful of names in the portfolio they really like and buy the whole portfolio expecting to turn a profit on those specifically, the rest are gravy.
Okay – that’s my two cents. What do you think? What is the wholesale per-domain price on a .IO portfolio?