When you buy a domain, how long do you think you’ll hang onto it before you sell?

time horizon

It’s something many people don’t think of when they buy a domain, but more people should – when do you realistically expect to sell? This question is tied to an equally important question – what do you want to sell it for?

If you look at some of the top Domain Investors, the people who have made millions selling domains (and nope, I’m not one of them), you’ll notice that they have no problem holding onto a domain name for five, ten, even fifteen or more years until the right buyer comes along.

The reality is, if you do have enough time to wait for the perfect buyer, you will get top dollar for a domain, if it ever sells of course. The question is, how long is that and are you comfortable turning down solid offers along the way? I imagine that Rick could have probably sold Porno.com for a few million dollars years before selling it for $8.88M, but waiting for the right buyer likely put an extra $5M or more in his pocket so was it worth the wait…you tell me?

Here’s the challenge. In many cases you can’t spend five-figures on a domain name and wait ten years for it to sell, or maybe it takes twelve years, or longer. You need liquidity in some reasonable amount of time. So you should be thinking about this when you buy a domain and know the trade-offs.

If you buy a domain for $10,000 and want to sell it in two years, maybe selling for $20,000 or $30,000 makes sense. At the same time, if you’re buying a name for $10,000 and hoping to get $250,000 for the name – setting a goal of one to two years might not be realistic. You might need to wait ten, which means you need to decide if you’re actually ready to spend that $10k now.

For me, I don’t buy domains for $10,000, most domains I buy cost less than $500 and I’d expect to sell a domain I buy today within 5 – 10 years from now. If it sells earlier, great, but nothing I’m buying today am I looking at as money I’ll be able to spend in the next five years. I wouldn’t say I’m a long-term investor in this case, but I certainly wouldn’t call myself a flipper.  So here’s the question – when you buy a domain name, what is the typical time horizon you’re looking for when it comes to selling?

{ 7 comments… add one }

  • AbdulBasit Makrani October 15, 2017, 10:06 pm

    Nice question Morgan and thanks for sharing your way of doing.
    My focus is to hold low-medium of domains for 2-3 years and and 5+ years for high quality names which I’m sure can fetch decent 5 and 6 figures in future. As selling them in short span of time isn’t usually possible.

    Reply
  • Jonathan October 16, 2017, 3:33 am

    Much depends on the language / culture the word / term is. I have a top European country portfolio and have held for 17 years and still expect to hold for another 2.
    India has yet to develop its B-C demographic before India centric business can develop.
    China require greater competition from with the Chinese centric markets before generic 2/3 word terms are used via baibu as apposed to direct search. It is tough unless you have the 10 / 20k to buy in flip or hold regularly

    Reply
  • Joe October 16, 2017, 10:41 am

    I like what you write in this post.

    I did not get over $ 1500 sales so far.

    Before meeting you Morgan, read a post from a domainer of this market that buying a bulk 250 domains at a cheap price recorder, two months domain parking and the third month selling all at a figure agreed with a domainer ie 4 times a year buy and sell many domains.com and got at the end of the net year $ 300,000 from 7 years ago to be able to live, I think that well earn this in a year after paying taxes.

    It has been days on Twitter that enginef1.com, seousd.com, menfly.com, heyadwords.com, nayuama.com, nakaty.com, doubleclickcpc.com were available. 4lby.com, 4ldo.com, aof2.com, aof3.com. iall1.com, adultdate.org, dieseles.com and nobody of you respond, just answer a broker and an investor who knows to know deals domains is from an arab country where being the gas and petroleum is capitalism pure and hard.

    Maybe I’m lucky or not this market is unpredictable, it’s like the weather in the state of California is burning everything and in the autonomous region of Galicia in Spain yesterday 60 fires of destructive fires today remain the same, it is estimated that to continue like this 50% everything will be burned by the hand of the human being within two years these burned places will be built houses with pool etc., it is the real estate speculation.

    The domain market is the same as in real life.

    To continue to survive, I will sell what I have to premium or normal numbers, then do as the first domainer to buy 250 new domains (.com) and cheap price of the registrar parking domains, and sell at three months price agreed with another domainer, there are we live within our possibilities the best possible.

    Reply
  • THCNames October 17, 2017, 10:15 am

    1 hour. 😉

    Reply
  • Will October 25, 2017, 9:47 am

    This is sometimes a tough decision, I always hear selling now is always better than selling later but you have to be able to know how valuable your domain is and be able to pull the trigger on a profitable offer and when to hold off.

    For me if I get an offer for 10 times what I paid for the name and I know I have not received much inquiries I will pull the trigger. Of course I aim higher closer to 50 times my investment or higher and this strategy has helped me pull the trigger even when I didn’t want to.

    – Will

    Reply
  • Nicco Schaal December 27, 2017, 5:13 am

    I believe most domainers do not have a choice to decide on how long to hang on or when to sell a domain.

    Unfortunately, the addition and expansion of hundreds of (new) extensions, took the exclusivity away from dot-coms.

    It takes forever for a buyer to find your domain, but the cost of domain accumulation, renewal, auctions, and promotion always raises and demands a hefty toll while building up and maintaining a portfolio.

    Yes, of course, that one USD 100,000+ Sale allows you to cover expenses and maybe even live comfortable for a little while, but how often does that happen?

    Today domaining is for deep pockets or domain seniors, oldtimers, that started out a long time ago. Sorry, but history will not repeat itself here.

    I love domaining, and I think that at least a few of my domains are perfect for start-ups or to link to another website.

    Unfortunately, nobody else seems to think so. At least they have not been discovered yet. So the question is not when to sell, but if they will sell. Ever.

    Reply
  • Jose December 27, 2017, 1:11 pm

    The offer of 60 domains, many of them with a single word, will not work out at USD 450 either.

    Well I have changed the registrar I will look for domain rentals to give more money every month, also Rookmedia.net accepted me for my domain names in domain parking.

    Good one-word premium in search of a brand startups through Brokerage: Nataky.com example. from $ 250K Images of nakaty electric car, .and nakaty electric cars.

    I am going to dedicate myself more deeply to my projects of Artificial Intelligence, Virtual Reality, I am very eager to return to undertake a path that I left behind years ago, it is possible that part of this is possible and I am happy, I will not look for the difficult thing since take many years and I am not to wait years soon to make 65 years of age I must take care more what I eat, health, and listen to music that gives me more rhythm summarizing my body. It’s different and my mind every day works with the rhythm of Blues Rock music etc. is very good.

    For example, today, in just one afternoon, you can find 150 one- and two-word domain names (.com), register and rent and domain parking and live making passive money every month.

    Reply

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