The concept of innovation is an important part of any business. It simply means bringing something new. Doing something new. Wikipedia has a page that defines Innovation as the “carrying out of new combinations” that include “the introduction of new goods, … new methods of production, … the opening of new markets, … the conquest of new sources of supply … and the carrying out of a new organization of any industry. When it comes to domain names innovation lies in adding new and better names and dropping bad ones. Certainly, there is the magic of adding new domain names to one’s own portfolio.
The domain investor has to consider the innovation aspect of the business. Irrespective of the portfolio size – the domain investor must look for new goods (new domains) and update his inventory. In the process leaving some old goods (dropping domains) is also a part of keeping the innovation aspect of the business alive.
We have seen that many domain investors constantly add new domain names to their portfolios. And, sometimes drop or sell off some of their domain names from their existing portfolio. As a result of this activity – the investor makes more profit. Or, maintains a healthy average of his domain name business profits.
Recently, I was reading a sale made by very experienced domain investor Abdul Basit at his blog where he discussed about converting into a sale a recently added domain to his portfolio. He said ”
If you see it’s the fastest flip – it just took him 5 days. The point of my post here is not the fastest flip. But, the aspect of continually looking for new domain names and upgrading one’s inventory of domain names. Had he just relied on his existing portfolio for sales – he would have not unlocked the value which comes from adding new domain names.
Here are some of the advantages of innovation:
- Keeps business: When you constantly look for better domain names and replace those with existing ones that are mediocre or of lower quality. You keep yourself ahead of others. And, you keep yourself in the race. Those who not add new domain names miss opportunities that are limitedly available. For example, KODAK didn’t realize the value of digital cameras. And, as a result of not moving with innovation and new technology, it went bankrupt.
- Increases Profits: The addition of new domain names keep the sales register ticking. Although, it’s not a guarantee. But, investors who add a better domain to their portfolio may experience more quick and profitable returns. Even, without any end-user sale – their portfolio value increases.
- Portfolio Value: A new and better domain always increases the portfolio value. If you look at your domain names from a wholesale value perspective. You just simply need to add the new value a particular domain is bringing to the pool of your existing domain name values.
- Saves Cost: Innovation in domain names is not just adding new domain names. It also involves removing domains that you see are no longer moving. Or is currently out of market requirements. Most of the investors either drop such domains or put them for sale at auction. And, once it’s out – means the cost is saved on further renewals. Further, it increases the average price values of your existing domain names at wholesale or retail values.
- Flexibility: Innovation brings flexibility. And, frees a business owner from conducting his business in a rigid manner. A rigid business owner fears change. And, keeps experimenting with his already produced or traded goods. This is not a good sign especially if one really wants to grow his or her business. So, flexibility is must not be ignored. Business is all about losing and gaining. And, over a period of time – gains offset losses by a huge margin for those who keep innovating.
- Trying luck with new domain names: We have seen this many times. One investor buys from another investor in some domains. And, the domain gets sold. The previous owner may have been waiting for years to sell that domain. But, when the domain gets transferred to a new owner – it sells off quickly. (Not all cases). But, it’s important to keep trying your luck with new domain names.