Heard a great quote today from a stock market analyst on what to do the rest of the year. With China, impeachment talk, 2020 Election, Interest rates and the global economy all representing real or perceived risks, what is an investor to do?
His comment was don’t try to grab on the the end of the FANG trade of hot internet stocks. Don’t try to figure out, along with billions of other dollars whether Netflix or Tesla or Bitcoin has more to go on the downside. Don’t sell everything because of Trump. But he shared its ok to keep your capital deployed, or de-risk a little, Hug Your Benchmarks and stay active.
So one of the risk some domain investors make, is to MAKE money, they have to go buy more names. If i could only buy a name today, thats worth 10-100x. True, but the way to get 10-100 x is to wait for the right buyer, or do outbound. Are you doing outbound? Have you been successful getting value sales, or end user sales? If you want to flip names you just bought, flip something you already own. Do it today. Then you know if it works, If your cut out for it. How to make a good contact list. How to do the right email.
So for me, Hug Your Benchmarks mean stay close to the thoughts, parameters and strategies that have worked for you in the past. If your buying one word domain names from end-users or auctions, and waiting to sell: keep doing it. Find exactly where you have had success, and keep doing it. And just because a strategy has worked, don’t over buy more. Just assess how to find the benchmarks and discipline you used in buying that paid off with profitable sales, and do it again.
So especially when there is no sure thing out there, stick with what has worked for you. And be honest, what are the sales you have made in the past 18 months? How did you buy them? Do more. And conversely, where are you dropping names? Where did you buy them? Stop.
Find what isn’t working in your portfolio, before it expires and try to get some liquidity. I would recommend to reduce prices below market, all the way to closeout. Make an immediate turn away from mistakes, either in strategy or specific names. I’ve taken over 500 names down from my dream retail of $2400 – $3400 to $399 as a buy it now, and even lower on forums and newsletters. I want to put that liquidity to work in areas i am making money. Dot just say I WANT TO sell a domain. You can’t make that happen.
Domains are illiquid. Either do the dreaded outbound or drop prices to where you would buy it right now, thats where another domainer will buy.
I think the biggest trend now is buying expired names with high valuations on godaddy, and flipping to end users. But there is a lot of competition for the best names, and your best sales won’t come for 2-5 years. This area has liquidity because of the appraisal tools.
So if you buy and list brandables on specialized marketplaces, and its working. Keep it up. Try to manipulate your portfolio to drop the bottom 20% and add on the top, based on what you now know
Its boring to work on what has worked in your portfolio. You want the quick pop, the fast hit or flip. But the investment most domainers make money off is is time, and luck. You bought a domain name when it was offered for sale or available, with no other buyer. And you wait for a specific buyer, or trend to mature. In the meantime, don’t force something you don’t know has worked for you.
If you don’t have anything that working find one of the tracks I mention above, and start very very small, and phantom trade some names. Or broker good names for other investors. There is nothing like the education of talking to buyers about what they want, without any capital outlay, to help you be a better domain name investor.