Domain investors are entrepreneurs looking to acquire domains and profit from their short or long-term holding. By selling a domain that was acquired at a certain price point, a domain investor aims to achieve a return on investment (ROI) that sustains his entire operation.
A single domain sale means nothing to a venture's operation, if the cost of the long term holding—renewals—of an entire domain portfolio leads to a loss.
That's why it's important to not only target domains that are affordable to acquire, but those that have potential to sell at acquisition cost multiples. If you pick one or two great domains and the rest of your domain portfolio consists of riff-raff, then you might as well start giving your funds away.
What's also important is to pick a price range for your domains, that will elevate your entire domain portfolio. Truth be told, not everyone can claim to be in possession of an entire cache of domains that are valued at six or seven figures a piece. But it's very feasible to achieve the same level across the board in the four and five figure range.
The goal is to be consistent: target domains that can keep up with the rest of your domain portfolio, and don't compromise on quality, potential, and value. If a domain leaves you with a "hmmm" feeling, then don't pay money for it regardless of price. It's like gambling, you might win but you probably lose most of the time.
A domain portfolio that follows the same price range valuation is elevated as a whole and can be liquidated as a single entity. Imagine being a real estate investor, acquiring mid range condos with very little upkeep cost. Would you buy a home in the bad part of the city, even if it were a bargain?
I sure hope you wouldn't!
Beginners in the domain investing game can most definitely find their bearings by aiming at the most affordable ranges, three figures and up.
Once you hit that first $1,000 dollar sale, the sensation of elation is unforgettable. The same when you reach $2,500 or $5,000 dollars in a single sale; just keep in mind that domain investing is not a race: Sometimes, you may find yourself holding domain names for a long, long time. That's why it's important to aim for quality as much as keep the acquisition cost low.
In a nutshell: No matter which price range you begin your domain range with, it's a marathon and not a sprint. Focus on sustaining quality across the board, never compromising your standards. You can most definitely find incredible deals on the Afternic inventory and use the Uniregistry Market to promote, monetize, and sell your domain portfolio.