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The “Legendary Domainer Portfolio” Paradox

Posted on 21 April 2014 by Andrei

As we all know, “legendary domainers” or in other words the domain investors everyone knows about own some amazing gems, no question about that. However, I’ve noticed an interesting paradox when it comes to their portfolios. Yes, they own some truly amazing gems but on the other hand, they have considerably more low to very low quality inventory than I thought.

For example, everyone knows a thing or two about Yun Ye’s portfolio and about the sale to Marchex. Quite a few of his domains would without a doubt make even the pickiest investors drool but even in that portfolio, there were lots and lots of awful domains. For example lots and lots of long numerics which are basically worthless. Don’t get me wrong, NNN and NNNN dot coms have done remarkably well lately but *long* numerics have been, are and always will be worthless. This is just an example but the bottom line is this and I encourage you to do some research yourself: even the best domainers have considerably more low quality inventory than you’d expect.

There are of course explanations. One of them would be that since they’ve done so well and are in such good financial shape, they’ve been tempted to go on “quantity over quality” buying sprees every now and then. All in all, they’re in great shape but in my opinion, talking about “the portfolio of legendary domainer x” as if it should be treated as a whole would be a mistake. Instead, it’s better to acknowledge the fact that the portfolio in question actually consists of multiple portfolios with varying characteristics and treat it as such.

Again, I encourage you do to some research and I’m sure you’ll agree with me that pretty much all popular domain investors have not a couple but quite a few “head scratchers” in their portfolios. Blindly copying their strategy in a “legendary domainer x owns abcdefghijk.com, so it must be a good domain” manner would be a huge mistake. Legendary domainers can afford to loosen their domain choice criteria every now and then, most people however cannot :)

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3 Comments For This Post

  1. AbdulBasit Makrani Says:

    I agree with you but have you noticed those veteran domainers are sometimes buying whole portfolio which will consist of some crappy names and you have to buy that as a package. They don’t purposely buy those but it is bundled in a package and is included if you want to buy those great domains.

    So all in all, it makes the whole portfolio buying cheaper but it depends on the buyer of leaving it on expiration date or keeps renewing as we have seen some rubbish LLLL domains getting sold for five figs which we won’t buy for $xx at domain forums…

  2. Konstantinos Zournas Says:

    Sorry but I don’t agree with this.
    You only have one example, Yun Ye, that his portfolio was always about size and not quality.
    Check out Rick, Anything.com, Original.com and many other domainers that have plenty of great 1 word .coms. Frank has some great domains and a lot of average but that is what you can expect from that quantity. There are no 100,000 top quality domains to be owned.

    And of course noone can own only top quality domains. They will have second tier domains that are for sale, keeping the best.

    And picking the worst domain name of each domainer to copy is no strategy, no matter how many people do it. But I don’t think they are copying anyone, they are just being themselves! :)

  3. Savio D'Silva Says:

    Excellent post. Always dig deeper. That’s the lesson to be taken home from this article. Never assume that the so-called big domainer made it only on a few good names and a select few giant sales. There are many ways to go about selling domains and I always choose the path less walked on since it’s essentially turns into a little goldmine.

 
 
         
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