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Blog Series: From Entry to Exit, An Approach on How to Level Up Your Portfolio with Grit!


This is a four part series designed to help domain investors make good decisions on building a portfolio, marketing domains for sale and reallocating profits. We have identified one Grit Factor for each section that is a key to domain investing success.

Parts in this series:

* Proper Entry - Make good acquisitions, Grit Factor: Discipline

* Once you have a solid portfolio, what next? - Where/how to sell, Grit Factor: Research

* Outbound Marketing and Dealing with Buyers - Patience and Persistence

* Reallocating profits - Rinse and repeat or level up? Grit Factor: Calculated Risk

Part One - Proper Entry - Making Solid Acquisitions, Grit Factor: Discipline


Beginning the journey as a domain name investor is not an easy task, just ask the hundreds of ‘domainers’ that have jumped in and started buying domain names without fully understanding domain name values or what kinds of domains sell. Too many times, this ends up badly with an investor sitting on a pile of names they are not able to sell. So, it sounds like the Grit Factor for this piece should be Research. As important as that is, the most important part of assembling a quality domain portfolio is using Discipline when making acquisitions.


It seems really easy to come up with a lot of cool sounding domain names but before you register (or buy a domain on the aftermarket) it is important to consider many different factors:


  1. Does the domain have obvious trademark issues? (see trademarkia.com)

  2. Is the domain easy to say, spell and remember and how many other extensions is it taken in? (see DotDB)

  3. Are there multiple potential buyers for the domain? (search Linkedin and Crunchbase)

  4. Do you understand the wholesale (liquid) value of the domain VS the retail potential? (use NameBio and DNJournal to see previous sales).

  5. Due diligence - are you buying from the rightful domain owner? is it a stolen domain or has there ever been any litigation filed against previous owners of the domain for how they used it? Has the domain been used for spam previously and now banned in Google? (use DNProtect.com to check)


The discipline aspect really comes into play at the crucial moment when you decide to buy or pass on the opportunity to buy a domain name. It is extremely important to remember that while domains are essential for anyone doing business online, 95% of domain names are not liquid assets (meaning you are not likely to be able to sell it for even what you bought it for right away if needed). Your objective should be to acquire domains that are undervalued and once acquired, they will likely take some time to appreciate to the point you will be able to profitably sell. There are plenty of domain flippers out there and some do very well, but I can guarantee that they did not get good at it without a lot of practice, making mistakes and ultimately learning how to make extremely disciplined buys.


One tip when buying that has helped many domain investors I’ve talked to over the years is when you are ready to buy a few domain names, it is a good idea to put them all in a list first. Once you have the list set, put it aside for a few hours! When you come back to it, go back through and use the 5 steps above (again) to remove at least half of the domains that you were considering buying. You’ll be surprised at how easy it is to find ones in that list that don’t make the cut when you revisit after a break.


For readers that are looking to acquire specific domains on the aftermarket but are not having luck tracking down the owners, we at Grit Brokerage have helped domain investors and many businesses alike acquire domain names at almost every price range. Whether buying domains for only a few hundred dollars or helping businesses acquire their dream domain name, either way, Grit Brokerage is here to help.




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