Domain name investing is a numbers game and some numbers are more important than others.
There are two key numbers when you consider the economics of domain investing: your average sale price and your sell-through rate.
The sale price is self-explanatory. The sell-through rate, however, is a bit more complicated, and a very small change in the rate can have a big impact on a domain investor’s bottom line.
Let’s take a look at these two numbers and how you can use this information to your advantage.
Sell-through Rate Defined
The sell-through rate is the percentage of your portfolio that you sell in a year. Someone with 1,000 domains and a sell-through rate of 1% sells 10 domains per year.
That might seem like a small number but it’s a typical sell-through rate for a domain investor that holds a large portfolio of domains.
Using 1% as a baseline, a small change can have a big impact. Moving the needle to 1.5% is a 50% increase in sales for the year.