Saturday , March 25 2023

My Sell Through Rate is Too High

A little while ago, I shared a bit of information about my domain portfolio sell through rate, and I want to add some commentary here. So far this year, I have sold a little more than 3.6% of the domain names in my portfolio. I have fewer than 2,000 domain names in my portfolio. One other fact is that I have acquired almost 3 times the number of domain names as I have sold.

I achieved these sales with a mix of closing deals via inbound inquiry, DAN and Afternic BIN sales and offers, and some highly targeted outbound email efforts.

The 3.6% figure would be decent if I was writing this article in December at the end of the year, but I think it is very high for a mid-year number. If I am being honest with myself, the number is probably much higher than it should be optimally.

Here’s the issue I have. In January, I have no idea how things are going to go. Even if February through June, I don’t really know how it will go. Last year, business was pretty crappy until the late Spring when things got really hot.

I make a living from the domain name business. I also grow my portfolio with the revenue I generate from domain name sales. This means I need to continue to sell domain names to generate the revenue needed for more domain names and to pay myself. Without domain name sales, I can’t do either in a comfortable way. It’s also boring as heck to not sell domain names (in my opinion).

Depending on various circumstances, I might be more aggressive about selling domain names depending on the time of year and how things have been going. Things might be slow in February or May, so I will sell for a less than ideal number. Things may be fantastic, but I just spent 6 figures buying domain names or paying taxes, and I want to drive revenue.

When looking at my stats for the year, things have gone pretty well. However, I think my sell through rate indicates that I am not pricing my domain names optimally.

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