Lately I have been thinking about decreasing the ROI that I look for when I sell a domain to align closer to what I would be more than happy with in any other investment vehicle. What got me thinking about ROI is a conversation I had with two different friends, one is a real estate investor, the other invests in stocks.
My friend in the real estate business was bragging about how well he had done over the last four years – his ROI, 3x. My other friend who invests in stocks was teasing him and bragging about her ROI, she had seen a 4x ROI over the last four years.
When I sell a domain name, my target is 10x or higher, has been for over a decade…but this conversation got me thinking, I wonder what would happen if I lowered my ROI expectations? The strange thing about being a domain investor is that you start to become comfortable with insanely high ROI numbers. Sure, some people got lucky with crypto, but your average investor looks for a much smaller ROI and 3x – 5x is an absolute home run.
So I was thinking, what if I lowered my ROI expectations to 5x rather than 10x? Would my liquidity increase, if so, maybe that’s worth it since it’s still an incredible return. What do you think? What ROI do you set for your domain names?
I want to hear from you, comment and let your voice be heard!