Should I Mitigate Value Risk for My Domains ?

Dot Com’s have been the king of the mountain for a long time and continue to be registered in great numbers. First mover advantage also applies in the domain industry however there is always a risk the strength of brand for .Coms is diluted. So if you have a financial portfolio it’s likely that you have a range of investments covering growth, cash and speculative.

It’s also likely that you mitigate some of your financial risk by rebalancing your portfolio as market conditions change or if you’re more sophisticated may use various hedging strategies such as put/call derivatives such as options. If you are serious about domaining and spending cash for domains makes it very real, it would be diligent to mitigate the value risk to your domain portfolio.

It depends on your circumstances and your portfolio mix however it would be wise to review your portfolio and current market trends and consider the following:

  • Should I sell some of my domains and take some cash off the table
  • Should I purchase some of the new TLDs that are trending right now
  • Should I allow a number of domains to drop that have a low liklihood of growth, cash generation or sale opportunity
  • Should I change my domain aquisition strategy – eg instead of handreg, purchase domains on the aftermarket
  • Should I create a business plan for my domain business
  • Should I create a specific budget amount for domain aquisitions and what is my appetite for risk of loss
  • Do potential domain buyers have access to my contact details to discuss sale opportunities
  • Do I have the right tools to manage a domain portfolio and business

 

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