Most quantity-based domaining business models (in other words hand registering lots of domains or acquiring a large quantity of cheap domains) end up failing due to the domain renewal variable, so itís literally something which can make or break your career. When it comes to quality-based business models (investing in a few really good/expensive domains) however, domain renewals are less of a burden because percentage-wise, compared to the acquisition costs, they can be considered pretty much insignificant..

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Most domainers such as Joe know right off the bat that renewals are going to add up.

Am I saying we can be 100% certain Joe will fail? No, definitely not, he may very well do ok with his business model. However, the numbers donít look good at all. Just to break even, Joe would need ten $1,000 sales. In other words, heíd have to sell 1% of his inventory each year just to break even and while 1% may not seem like a lot, it would be a pretty optimistic number for a portfolio which consists exclusively of hand registered domains..

In 2015 and beyond, domainers are better off focusing on quality-based business models in my opinion. Owning 5 domains (Brianís situation) may not provide as big of an ego boost as owning 1,000 (Joeís situation) but since when is domaining supposed to provide an ego boost? Weíre all here to make money and therefore owe it to ourselves to choose whichever business model is more likely to generate high returns, never lose sight of that..

To do well as a domain investor, you have to be pragmatic and understand what youíre up against.

Most of the end users youíll be in contact with will be shoestring budget operations that can hardly afford to pay a fortune for a domain. And even if you do occasionally deal with a large company or even a huge corporation, you need to know that even in such cases, the budget theyíve allocated towards domain acquisition is frequently less spectacular than youíd expect. .

Staying informed is of the utmost importance if youíre serious about doing well as a domain investor.

Keep a close eye on documented sales prices, stay in touch with other domainers in order to share data and so on. Whatever you do, just donít make the mistake of assuming that whenever an end user comes along, you can say goodbye to all of your financial difficulties. This doesnít mean you should be a grumpy pessimist as of this point, it simply means you should expect the best (because yes, the domaining industry is without a doubt amazing and may very well prove to be life-altering in your case, as it has for me) but plan for the worst (even the most amazing journey can occasionally get bumpy). Fair enough?.

In 2015 and beyond, a lot of domainers will most likely end up dropping quite a bit of filler inventory.

What's filler inventory, you might ask? Simply put, I'm referring to domains which are average at best, let's say medium or even downright mediocre ones. As much as an ego blow it might be, let's face it: there's no such thing as a perfect portfolio and at one point or another, pretty much all investors will end up dropping some domains..

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Which domains should you drop? Well, there are basically two things which make a domain desirable: revenue on the one hand and its sales potential on the other. If your domain doesn't generate enough revenue to earn its keep (or cover its renewal fee, in other words), you've owned it for a decent amount of time and are scratching your head when trying to assess its sales potential, I'd recommend letting go.
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