Let’s say you hand register a domain today, something invented, off the top of your head. And you attempt to sell it to another domainer. They’ll probably laugh at you. Or maybe they’ll take pity on you and offer $12.00 (and that’s being generous). If you take the same domain and try to flip it to an end user, you’ll probably get a similar reaction. Why? The end user is becoming savvier. Heck, even my Mom can spot a decent domain out of a pile of garbage ones.
My point being, if you want to convert your domains to cash as quickly as possible, you’ll want to focus on quality names vs mediocre. If you’ve got time to spare, and/or you’re taking a long-term investment approach, sure, you can speculate on lower tier names. They might increase in value over time, but they might not. They might become worth less than zero..
You might even get lucky on occasion, but as far as an actual strategy for success, you really want to limit your percentage of invented, or mediocre, average quality names, to 5%-10% of your portfolio. Otherwise, you’re throwing money away. Of course, this is just my 2 cents, gleaned from a few years of experience.
You might be wondering, “how exactly do I tell quality vs garbage?” Well, do your research. Look at what’s selling. Price accordingly. And price to your strategy. Cashflow or long-term investment? You might be happy with a relatively quick doubling or tripling of your investment. Maybe you want more. Pick a strategy and keep at it for a while. Make adjustments as necessary. Good luck and Godspeed. It’s a wild world we’re living in these days!