Names to Maintain Cash Flow — Selling Domain

Domainers turn to sales to maintain cash flow.

At the last TRAFFIC conference in Orlando I had a conversation with one of the more successful domainers. We chatted regarding parking and the drop in parking revenue, and also discussed sales. He told me he is starting to sell some of his portfolio:

“With domain parking down, I’m selling a couple domains a month to maintain the same cash flow I had last year,” he stated.

Of course, parking revenue is very different from sales revenue. Parking revenue is rent, whereas selling domains is akin to selling the houses that earn rent. It’s not “revenue” to many people; it’s an asset sale. Over time you have to replenish your housing inventory if you wish to maintain your parking revenue. But most sellers in this market are being opportunistic. They sell domains that don’t make much parking revenue when the right end user comes along. Even if it’s just a $5,000 sale, that’s not bad if the domain earns $100 a year.

And there are buyers out there, especially modest and medium businesses. NameMedia has told DNJournal that its sales numbers are better than ever.

What are you doing in this down market? Are you selling some of your domains to keep cash flow steady? Are you buying at the same time?