Reasons to Exit Domain Investing

Domain investing is often compared with the real estate business. And, because of its lucrative nature – it draws the attention of many investors who see domain investing as a viable source of solid returns. But, sometimes existing investors may want to take an exit from domain investing due to the following reasons: Personally, I am still into investing but with a limited focus. So, here are some Reasons to Exit Domain Investing

  1. Heavy competition: Domain investing has become a competitive place. For one particular domain name (a good one) there are many bidders competing against each other. Gone are the days when a backorder was successful without the need to bid against someone else. And, with less and less inventory of quality names. Many bidders are finding it difficult to acquire decent domain names for a good price.
  2. Good Names are Gone: The inventory of quality domain names coming to auction over the years has drastically decreased. Good domain names are not that often dropped. It seems many end users have realized the worth of a good domain name. And, are holding onto it. Even though they may be not using that for business. But, they are capitalizing on the traffic it is producing. And, this is also a reason domain names appearing on various auction houses are lacking the quality which domain investors generally love to see in that particular domain name.
  3. Time Requirements: Domain investing requires a solid amount of time. Learning, buying, selling, and managing. Which I say Four quadrants of domain investing – takes a lot of time. You may well spend 2 hours a day. But, over the years it adds up substantially. And, if you’re not learning it right (like me) you will end up in a situation where it will be difficult to generate good revenue.
  4. Not constant income: Domain investing income is not a guaranteed one. You may have one sale. Then no sales at all for months. Especially if you are an investor who relies more on inbound leads. This is also a reason when an investor feels like wasting time. With monthly renewals ticking the clock – cashflow concerns are quite important.
  5. Too many TLDs: Onlne domain names are now not just limited to .com, .net, or a .org. With global expansion – internet too opened the doors for new generic top-level domains such as .club, .online, .site, .web and many more. This means – businesses now have many opportunities to get the name they desire. And, this has slowed the demand for the mainstream generic top-level domains.
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