I saw this tweet from Domain Investor Josh Reason yesterday and thought it was so spot on I’d feature it in a post. What Josh brings up is a topic that has been talked about a lot, but IMO, cannot be emphasized enough.
Sometimes people try to give advice that applies to all domain investors, which never makes any sense to me. It’s like trying to give advice to all stock market investors, it’s impossible because you’re missing a key piece of data, time horizon.
While there are a lot of different factors that go into investment decisions for domain investors, a main bifurcation of the domain investor market is people who invest part-time, don’t need the money now, or anytime soon, and those who do this as their primary business and need to generate cashflow.
Here’s an example. If you have a day job and don’t rely on your domain income for any of your livelihood, you can have a zero revenue month and not miss a beat. Maybe you turn down a few offers that you could have taken but you didn’t because you don’t have to. On the flip side, if your livelihood is dependent on domain names, having a zero revenue month is a fail (in most cases) and would mean you need to play catch-up next month.
This would be a great topic to do a deeper dive on, I might ask Josh if he wants to share more and put it in a separate blog post because I think he has some good insights here!