Quick flip vs. waiting for the perfect buyer, when it comes to selling domains, which do you prefer?

Yesterday I wrote a post about a pretty awesome sale that domain investor Josh Reason made, MarketInsider.com for $7,910, a domain he purchased a week earlier for $700. As far as I’m concerned, that’s a great sale, over 10x ROI in a week, yes – I’ll take that.

There were some good comments on my post yesterday but one caught my eye and inspired me to write a follow-up post because I think it brings up an important issue:

There’s part of what Bob is saying that I agree with, and part that I don’t. I was going to respond in the comment section of the last post but since this is something I think is incredibly relevant to most of my readers I thought I’d share my thoughts in a post.

So I do agree with Bob that someone like Rick could sell this name for more, I’m not sure about $100k, but I’m interested to hear what Rick thinks he could have sold it for if he waited for the truly optimal buyer to come along.

Where I don’t agree is that Josh didn’t use good negotiation tactics or exercise patience. Making 10x on your money in a week makes you a badass negotiator in my book, and without any more data we have no reason to think this particular buyer wouldn’t have walked if he held at $10k or higher.

I think that there really is no right path here, it all depends on what kind of investment strategy you follow, and like most things in life, it’s different for everyone. For me, if I can make 10x today, I’ll take that over maybe making 20x or higher five years from now. While I do have a handful of domains in my portfolio where I’m willing to wait for the perfect buyer in most cases, I want to lock in a good ROI as quickly as possible to feed more money back into my business to buy more names, and lock in a profit.

One of the domains that I got heat for selling too cheap is Summon.com which I bought for $3,500 and sold for $17,500. A few domain investors told me that they think I could have sold the name for six-figures if I waited. They were probably right, but a $14,000 profit for me in a short period of time was worth it then. Now, eh, I’d probably hand onto this one longer and wait for a higher price, but my life and finances have changed over the last seven years so my investment strategy has changed a bit with it.

That being said, I’d say 90% of the domain in my portfolio I would happily sell tomorrow for a 10x profit and not look back. 10% of names in my portfolio, sure I’ll wait longer for the perfect buyer. If I were in Josh’s shoes, I would have sold MarketInsider.com for the exact same price, then I’d re-invest some of the profits in one or two other names and keep the rest.

Just like we probably all invest in the stock market or real estate differently, we also all invest in domains a bit differently. The question is – are you a bird in the hand kind of investor or, like a championship fisherman (or fisherwoman – that’s a thing right?) do you want to wait until you get top dollar for every single domain you own?

You know what I think, now I want to hear from you. Comment and let your voice be heard!

{ 7 comments… add one }

  • John May 2, 2019, 1:08 pm

    Summon.com is not a great domain, so you did quite well. Summons.com is not even great.

    In all modesty (lol), people should see my comments there too. Especially where I said what I believe should be the subject of a big blog post on multiple blogs.

    I’m sorry (not), but the “10x” concept to call the sale of MarketInsider.com good here just does not work. I’m not saying necessarily the seller made a mistake or that it makes no sense for everyone to have made that sale, but I am saying (and agreeing) that particular domain is just really very good and worth much more than what it went for. So the bottom line is that a higher sale was not just desirable, but for one like that also realistic.

    Everyone’s situation is different of course.

    Reply
    • John May 2, 2019, 1:12 pm

      PS, and come to think of it, here we have a classic textbook example of where a longer two word domain is WAY better and more valuable than a one word domain, i.e. summon.com vs. marketinsider.com.

      Reply
  • bob May 2, 2019, 7:00 pm

    Thanks for following up on my comment Morgan.
    I think this is an important topic.
    This is a special case because of the QUALITY of that domain – marketinsider.com

    Josh did great for Josh. But someone like Schwartz or a domainer who recognizes the high quality of that domain and was Patient could have done a lot better.

    As a former trader, I immediately recognized the value of that domain. That asset is perfect for Any big league financial journal type: CNBC, Wall St. Journal (News Corp.) or any well-known financial journalist (Josh Brown, Jim Cramer, Maria Bartiromo, etc.). Investors Alley got an incredible bargain and stole that domain from under Wall Street’s cocaine dusted nose. Congrats to them.

    I believe Josh may have needed the money so good for him. Perhaps, he couldn’t afford to be patient. IF that is the case, no harm and no foul and well done. $700 for that pick up was almost a criminal act. Kudos to him for spotting a super deal.

    Personally, I feel that both sales are a tragedy because marketinsider.com is worth so much more. The domainers out there really need to up their games and demand more for their assets, especially high quality ones. Stop giving them away for pennies on the dollar.

    Do you have any idea what it costs to advertise on Wall Street????

    Reply
  • Snoopy May 2, 2019, 7:13 pm

    Summon.com definitely too cheap, very good name and John doesn’t know what he is talking about. Not sure sure about 100k but 17k is a more the reseller value.

    Reply
    • John May 2, 2019, 9:43 pm

      John does know what he’s talking about and summon.com sucks.

      Reply
  • David T Michaels May 3, 2019, 2:13 am

    $8000 is probably the upper limit price of a domain the almost matches a registered trademark.

    Josh claims to sell about 3 domains per month. But what are his inventory carrying costs? How many domains does Josh own and will most of them sell at these prices?

    Josh might not be making more than $80,000 per year, after you subtract his domain renewal fees and afternic expenses. If his domains don’t sell in a week, they should get landing pages with generic or non-infringing content, complete with carefully selected third party advertising.

    For super premium domains, we domain owners should file trademark applications. It costs $225. A trademark registration is good insurance against a UDRP.

    While I think that Market Insider is a better name than the registered Markets Insider trademark, it still could be argued that it’s a typo domain.

    Markets Insider is a USPTO registered trademark for

    Providing online news in the field of finance; Providing online news articles in the field of finance; Providing a website featuring news in the field of finance; Providing information, commentary and advice in the field of finance; Providing an interactive website featuring commentary in the field of finance; and Providing an interactive website featuring news and information in the field of finance
    International Class(es): 036 – Primary Class

    Reply
  • urlowner May 11, 2019, 2:49 pm

    When you talk about flipping – what channels do you use to sell names you pick up at auction?

    Regards,

    Carl

    Reply

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