Washington Post article provides more data on about domain name portfolios.
The Washington Post wrote about domain name investor Mike Mann yesterday, and the article sheds more light on the economics or large domain name portfolios. Really, it applies to all domain portfolios, even if you have a small one.
According to the Washington Post article, Mann’s company DomainMarket.com owns 350,000 domain names. He grosses $4 million a year from selling domains from the portfolio.
Right there, you can see a problem. The renewal fees alone on the portfolio are close to $3 million.
Then you consider the costs of building the portfolio. Mann told WaPo he spends $3 million a year buying new domain names. Suddenly, it makes sense that he is $2 million in debt.
Mike Mann frequently posts tweets like these:
Some domain investors grasp at resale stories like these for inspiration. But in many ways, they’re like lottery tickets. As you can see from the numbers above, for every domain Mike resells for a 2000x return, he has many domains that don’t sell. For a long time, if ever.