What is the Ideal Domain Portfolio Size?
It’s interesting how many domain investors are cleaning up and downsizing their portfolios right now. I think this trend reveals something important about domain investing: you get better at spotting quality domains the more you do it, plus the market itself evolves over time.
The 10,000 Domain Benchmark
Reading about AbdulBasit’s approach, he’s currently around the 10,000 domain mark with an average of 10-11 sales per month. During lockdown, those numbers were even higher. But here’s the key point: 10,000 unsellable domains won’t help anyone. It has to be a mix of quality and quantity.
As AbdulBasit notes:
With 10K domains, I was selling 15-20 domains monthly at Afternic as per the monthly reports I’ve shared on my blog. Also, more than 99% of my domains are not hand registered by me. Currently my domain portfolio is 11,000+.
The Symphony.com sale appears to have been the breakthrough he needed to scale to that level, though there may have been other funding sources too. Capital for investment is absolutely essential at that scale.
The Hand Registration Debate
One interesting detail from his approach: he never hand-registers domains. I’m mixed on this stance. I’ve definitely been able to sell hand-registered domains, though not at the top levels. You could argue that every domain was a “hand reg” at some point in its history.
The reality is that hand-registered domains rarely achieve the same premium valuations as aged domains with established history and authority.
The Four Pillars of Domain Success
Based on what I’m seeing in the market, successful domain investing requires:
- Time: It takes decades to build real expertise and a quality portfolio
- Capital: You need significant investment funds to acquire premium domains
- Domain Eye: The ability to spot domains that will actually sell
- Patience: Building a portfolio and waiting for the right buyers takes time
Finding Your Sweet Spot
I’m not at the 10,000 domain level and don’t plan to be. For my personal circumstances, the right portfolio size is 500-1,000 domains. This gives me the right balance of renewal fees and average sales volume that works for my situation.
The key is finding the portfolio size that works for your capital, time, and risk tolerance. For some, that might be 100 domains. For others, it might be 5,000. The important thing is focusing on quality over quantity and building a portfolio you can actually manage effectively.
What’s your ideal portfolio size? The answer depends on your goals, resources, and how much time you want to spend managing domains.