Here’s a question that I’ve seen come up a lot over the years and just came up again from a new reader so I thought it was time for a fresh post about the topic. What I’m talking about is how long you expect to hold a domain name before selling it, hopefully, at the target ROI you’re looking for.
Now before I share my answer to this question I’ll note that there really is no right answer here, but like most topics, there are plenty of opinions and well, this is my blog so where better to share mine right?
Most of the domains I sell move in the $2,500 – $7,500 range and I’ve typically found the average hold time for these is around five years. While I think you probably could set a lower hold time for yourself, you’d likely also have to lower your pricing a bit, my guess is you could cut that time in half if you decided to focus on the $1k – $2k range.
Of course, this data isn’t that useful unless we share the type of domain, and for me it’s two-word .COMs, that’s been my focus for years and I don’t see it changing anytime soon. Over the last 5-6 years I’ve added .IO and .CO to the mix along with a few .VC names here and there but I can’t say I have enough data to really know what the true hold time is for names in those extensions.
I do think the hold time for a domain investment varies based on two critical factors:
- The domain itself
- Your expected ROI (and floor)
Investors I know with one-word .COMs will often hold for 10+ years before selling a domain whereas people I know that want a quick flip will go for two and three word .COMs priced in the $100 – $200 range. There’s no winning formula for domain investing, just different paths you can take.
All that being said, I’m curious to know if there is some overall number investors have in mind when they buy a domain when it comes to liquidity? I feel like I’ve been settled on the five year mark for a while now but I know I could change that in one direction or the other if I changed the type of domain I invest in and the ROI I’m looking for.
So now I’ll hand the mic to you – when you buy a domain, how long to you expect to hold it for before you sell it? I want to hear from you, comment and let your voice be heard!
Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.