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Level Up Your Portfolio with Grit, Part 2

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 - Making Good Acquisitions, Grit Factor: Discipline

* Once you have a solid portfolio, what next? (Below) Grit Factor: Research

* Outbound Marketing and Dealing with Buyers - Patience and Persistence

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


Where & How to Sell Domains, Grit Factor: Research


Now that you have made some solid domain acquisitions, you’re probably ready to get them in front of potential buyers. There are dozens of domain name aftermarket websites, brokers and platforms where you can market your domains for sale. Not every domain investor has the same time horizon or expected profit margin from their domain investments and it is important to figure out your domain sales strategy before placing them for sale.


Doing proper research before listing your domains for sale will save you time and get you better results, faster. When pricing your domains, it is important to look at resources like NameBio.com, DNJournal.com and to read blogs like JamesNames.com or others to see what similar domains are selling for. Every domain investor would love to get massive profit from a single sale, however, by over-valuing and placing too high of a price on your domain(s), it could prohibit a buyer with a realistic budget from being able to acquire or even make an offer on your domain. You can also underprice a domain and accidentally sell it for far less than what it might be worth.


If you are looking to flip domain names quickly then using marketplaces like NamePros or social media sites like LinkedIn (domain groups) may get you a few sales. However, your audience in these places will mostly be made up of other domain investors, so your returns will likely be limited. The benefits from using Namepros or LinkedIn for selling domains is that you can expect a fairly quick transaction, and there is no commission to pay anyone if you get a sale. *You always want to do your due diligence before transacting with someone you don’t know, Namepros has a trader rating system in place for this reason.


For domain acquisitions that an investor has a much higher expected return for (which generally require far more patience) then there are many options available and this is not an exhaustive list. To start, platforms such as Sedo.com or Godaddy/Afternic.com are large domain marketplaces that attract a lot of eyeballs. When placing your domain for sale on these platforms you will want to factor in a 15%-20% commission. The biggest benefit in using these marketplaces is that your domain will likely appear in the registration path on the registrars like Godaddy.com. So, if buyers type the domain in to find out if it is available, it may show up with a premium price. Buyers are confident transacting on these sites as they are well known companies. The downside of relying on these platforms for sales is that your domains are mixed in with tens of millions of other domains for sale on these same marketplaces, so you’re really only relying on the perfect buyer to find your domain on their own.


Another option for selling high quality domain names is to submit them for consideration to a domain broker. Domain brokers will not accept every domain name that is submitted, so you want to choose your best domains to send in. Most domain brokers also have a 10% -20% commission rate and some require a retainer upfront. If your domains are accepted for brokerage, you can expect a much more personalized experience. From the outset, brokers will look to get on the same page with the owners regarding the potential sale price of their domains so that the price is realistic and the name has a chance to sell.


Domain brokers, like us here at Grit Brokerage, specialize in outbound marketing. This is the method of researching and reaching out to contact the best potential buyers for the domains on the sellers behalf. Domain brokers may also handle inbound leads for clients that prefer not to negotiate their own deals. If you have one or more high quality domains, there are several benefits to utilizing a domain broker. First off, many top domain investors feel it’s important to remove themselves from the negotiation process. The reason for this is actually quite simple, if you own the domain name, you are most likely to have some sort of emotional attachment to it that will come through in a response to an inquiry or low opening offer. Domain brokers are experts at negotiating and are trained to keep an even keel, which is a huge factor in working through high value sales. The best domain brokers are also good communicators, persistent, well informed on nuances/industry trends and are as transparent as possible.


If you own valuable domains and prefer to have a hands off approach but still want to know your names are getting exposure, then seeking representation from a domain broker may be your best option. That said, domain brokers require exclusivity while working on selling clients domains, so you would need to de-list the domains from other sale platforms that a broker is working on. Some domain brokers will only work on ultra premium, one word .COMs while others may also be willing to take on words in other TLDs and solid two word domains.


Whether you are looking to cash in on quick flips from your domain names or are holding out for a big payday, it is always important to do your due diligence before listing your assets for sale. Research your domain's value ahead of time, look at the different platforms available to you and find out other domain investors' experiences with them. If you are looking to find a suitable broker, see if they are available to speak in person on a phone call or Zoom. Overall, it’s always a good idea not to try and rush domain sales but to take a methodical approach. Remember, every domain is different, so one method may work better for some domains than others.


Grit Brokerage is a team of domain brokers with over 25 years of experience, so if you are looking for someone to help with your portfolio, feel free to contact us.




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