We all see the sales come through, a domain that looks like it may be worth $10 but one of the “big boys” sells it for $50k and we are left scratching our heads wondering what we’re doing wrong. You’re doing nothing wrong and you should not attempt the big boy strategy and here’s why…

There are big domainers out there (“big” relative to portfolio size and not body weight) who price everything for five figures or higher. They also own 50,000 or 100,000 or more domains. And a lot of those domains I would not value beyond the reg fee if that. But what these big boys also own is some premium domains and a healthy number of middle of the road domains. By owning some really top notch domains they are earning solid parking revenue, and this parking revenue allows them to cover their renewal fees. In fact, I’d guess that the 90/10 rule would apply here, where 10% of their domains earn 90% of their parking revenue (and it may be more skewed then that). Since the parking covers the renewal they can afford to ask an arm and a leg for every single domain they own because their expenses are covered, they have no exposure. They are essentially fishing and they have a TON of lines cast out in the ocean. And yet we don’t hear about hundreds or thousands of these big sales for low quality domains happening each month, we hear about 5 or 10 if that. If it takes a portfolio of 100,000 domains to generate between 1 to 5 head scratcher sales per month, do you think that you and your portfolio of 100 or 1,000 domains is going to succeed with this strategy? It’s just not going to happen for you.

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