What percentage of your portfolio should be in liquid domains?

Here’s a question I find myself pondering all the time – what percentage of your portfolio is (or should be) numeric domains? As I’ve pointed out many times before, numeric domains are selling for five figures all the time at Go Daddy auctions, and the prices only seem to be getting higher.

Numeric domain names have a nice bonus built in – they fall into the category of “liquid” domains which means they can actually be sold when you want to sell them vs. having to wait for the “perfect” buyer.

Okay, now all that being said – the challenge with liquid domains is that while they are liquid, the multiples that you sell them for are often significantly less than with generic .COMs. While you can buy a two-word .COM and sell it for 10x what you paid for it, liquid domains might sell for 1.2x or 1.4x (just examples – don’t hold me to these exact numbers).

I’ve always believed that some percentage of your portfolio should be liquid domains, say 10% – 15% – since at some point you might need money, now, and this will allow you to get that from your portfolio without taking a major haircut.

As for building a portfolio that’s balanced more towards liquid domains, I’d say that’s undermining the wonderful thing about domains which is the incredible ROI they offer. But that’s just me, and what do I know.

So now I want to hear from you. Do you have liquid domains in your portfolio? If so, what % of your portfolio do they represent?  I want to hear from you – comment and let your voice be heard!

Morgan Linton

Morgan Linton