Building a strong domain portfolio is the ultimate goal of aspiring domain investors. It does not happen overnight, and it's a process that requires commitment, hard work, and making intelligent investments.
Buying and selling domains is not exactly the same as domain investing; what's often known as "domain flipping" is a process that seeks to achieve quick profit without maximizing the domain asset's return on investment.
Diversification of domain assets is one such ROI maximization strategy utilized by domain investors. It's a healthy approach to targeting different niche markets, such as dictionary words, brandables, geodomains, short domains, and more.
Building up a diversified domain portfolio is the ultimate goal that protects investors from individual market collapses. Just like stocks, some domain niches can be viable in the short term, while others last considerably longer.
A diversified portfolio consists of different niches that have to be independently perfected.
If your individual domain niche markets aren't holding up, your entire portfolio is not going to hold up either. By finding and perfecting your domain niches, you are keeping every piece of the puzzle in its expected position.
Finding a domain niche can become a time-consuming and costly adventure, however, so here are some tips on how to best locate, build, and sustain your domain niche portfolios:
Avoid going all out in a niche that is not proven. For example, registering or acquiring a bunch of domain keywords that are tacked onto a product or service extracted from current news or trends. You can easily spend a lot of money accumulating domains that offer nothing to a potential buyer because odds are that only 10% of that group of domains truly makes sense to keep.
Are you easily "psyched" by news and trends in the media about new technologies, remedies, and what's considered "cool" at the given moment? This can cost you a pretty penny, by leading to registration upon registration and acquisition upon acquisition of domain names that have a very short lifespan. While there are true gems that can be acquired or registered, it's good to consider the cost of your overall acquisition before you embark on such spending.
Remember: Domain investing is all about strategic placement of your funds on domains that will return a healthy profit—it's not about getting every single square on the chessboard populated!
Some domain niches can be more costly than others, even at a minimum. For example, three-letter .com domains, are notorious for being treated as "coinage" by investors, and as a highly desired domain for corporations to own. When investing in such a niche, consider the qualities and characteristics of these LLL .com domains, such as the type of letters you're investing in, popularity of the acronym, and number of potential meanings. Expand the list by identifying the potential buyers before embarking on a shopping spree just to get a three-letter .com.
Emotional acquisitions are also not a demonstration of a smart investment. Do not treat your domain portfolio as a comic collection that you should be getting all the issues from 1 to 100. Be emotionally detached from your domains in order to sell them at a great price when the opportunity comes. Double-check the reasons for getting a particular domain that fits into your domain niche, and record these reasons for future reference.
While new domain niche markets are tempting, sticking to traditional ones should ensure attaining a strong domain portfolio with a growing value. Such niches include single- and two-word .com domains, real estate and financial terms, geographical destinations, and short domain names in quality TLDs.
Lastly, review comparative domain sales data ("comps") that can support your choice of a particular domain niche. Make sure that data is recent, and not from an era when that particular domain niche reached its peak.
Conclusion: By building domain niches that are independently strong, your entire portfolio becomes a powerful passport to your future wealth. You can always find quality domain names listed for sale at the Uniregistry Market.
The information contained in this blog is provided for informational purposes only and should not be construed as an endorsement, advice, or opinions from Uniregistry on any subject matter.