Why Development is Now a Critical Aspect of My Business
Despite the economy that seems to be on a roller coaster ride, good domain names are still fetching very good prices. This is important for me because selling domain names is how I make a majority of my income. However, development has become an integral part of my business, and I’ll tell you why.
Domain names aren’t selling as quickly as they once did. A few years ago, it was very common for me to buy a name and sell it within just a few days. Other domain investors had a great appetite for descriptive domain names, and it was far less common for me to hold a name for more than a couple of months than it was to flip it quickly.
From my perspective, the “hold” time on my personal domain investments seems to be longer. I am more focused on selling to end user buyers than relying on the once very quick flips. While the quick flips are still there (and still have the same excitement), they occur less frequently than previous years.
With my developed websites (dog sites, city .com sites, my blog, and a few miscellaneous sites) generating significant revenue, I have a greater ability to hold high value domain names without the pressure to sell them. I can be much more selective when it comes to selling my names, and I am in a far better negotiating position. For instance, if I receive a $10,000 offer on a name I think is worth $25,000, I can turn down the offer, even if I paid $5,000 for it and a sale would yield a profit.
From my perspective, I believe you should develop your best domain name into a revenue generating website rather than spreading yourself too thin and building many sites. Once that site is generating significant revenue, then you can branch out and build the next one. Don’t take on too much at once, but do build one revenue generating website.
Having another revenue stream that brings in consistent income will reduce the pressure on your domain sales/flipping business.
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