Bigger Isn’t Better
Of course I am referring to the size of your domain portfolio. Some people may think that because they have 1,000, 5,000, 10,000 or 20,000 domain names, they are better off than others. I really couldn’t disagree any more, unless you happen to have an unbelievable portfolio (meaning you spent many sleepless nights over the past several years researching and cashing in on money making domain names).
I saw a post where people were asked how many domain names they own, and I was pretty surprised at the amount of people who owned hundreds of domain names. Additionally, I’ve received emails from many people who have asked me to appraise their domain names, and they’ve sent a list of hundreds of mediocre domain names to evaluate. I really believe a person can go broke quickly by registering hundreds of new domain names. Technology and data mining scripts have gotten to the point where it is nearly impossible to hand register domain names that will pay for themselves in PPC revenue, unless a trend or event happens that makes the names relevant. I would like to suggest that people focus on quality and not quantity.
One trend I’ve noticed is that some people believe that because they have an entire portfolio of hundreds of similar names, the set has more value. For example, if someone owns 12345Golf.com, 12345Shopping.com, 12345Travel.com, 12345Sex.com…etc, the names aren’t more valuable simply because almost every 12345 domain name is owned by them. Unless someone else wants to build a huge network of websites using that idea (doubtful), the set is a $7.50 X x,xxx annual drain. One thing to think about is why would someone pay your premium, when they could come up with an idea that is similar and hand register the set (123456 for example).
There is nothing wrong with owning a large portfolio of domain names if you are generating enough revenue to support it, or if you are making enough profit in sales that you can incur the renewal costs with no problem. However, I have seen people become overwhelmed with renewal fees, and it can be difficult to watch some domain names drop because of it.
My advice is to keep your portfolio as trim as your budget will allow. Instead of buying dozens of new registrations, it might make more sense to buy one quality name.
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