Today, I’d like to ask you to imagine the following scenario: what if there would be a let’s say 5 year ban on domain sales? In other words, if you were not allowed to sell your domains to anyone (domainer or end user, doesn’t matter) as of today for 5 years?
One of Warren Buffett’s most famous quotes is this:
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
Since we’re talking about the Internet which has its particularities for sure, let’s replace 10 years with 5 years.
What would happen to your portfolio after those 5 years?
Would the domains still be valuable?
Would they be more valuable?
Would they be less valuable?
Under which scenario would your domain(s) go up or down in value?
… asking yourself questions like these can be a pretty interesting experience because it puts your portfolio into perspective.
I say this on DomainingTips pretty frequently: hope for the best but prepare for the worst.
The 5 year ban scenario is *extremely* unlikely but not impossible. Maybe something else could happen that would render the domain market as we know it useless for a certain period.
Perhaps a black swan event if you remember the post I wrote back in December?
Now I’m not telling you this with the intention of scaring you.
Not at all.
In fact, I’m 99% sure something like this won’t happen but imagining how such a scenario would unfold can be an extremely interesting experience for domainers in my opinion and I think you guys might be able to draw some pretty useful conclusions.