Oswin

In the last couple of weeks, I’ve been getting this question (in different forms) in my DMs: “How do I become a full-time domain investor?” Here’s my honest answer… You probably don’t. At least not unless you have a significant amount of capital to invest and plenty of time to build a solid portfolio. The truth is that buying good domains at auction and eventually selling them for a healthy ROI isn’t that difficult. I’m not saying anyone can become a successful domain investor overnight. But it’s not rocket science either. The real challenge isn’t knowing what to buy. It’s having enough capital to build a portfolio large enough that sales start happening with some regularity. And if you don’t have the capital, you’ll need another resource instead: time. A lot of time. Time and patience. But don’t just take my word for it. Let’s do the math. Let’s say you want to become a full-time domain investor and you’ve set aside $5,000 to buy domains. You find 200 decent names at $25 each and buy them all. That’s your entire budget invested. Now let’s say you price each domain at $2,495. And let’s assume you’ve done an excellent job selecting names, giving you an annual sell-through rate (STR) of 2%. That’s actually a very respectable STR for most investors. With 200 domains and a 2% STR, you’d sell about four domains in your first year. At $2,495 each, that’s roughly $10,000 in sales. After marketplace commissions of around 25%, you’d be left with approximately $7,500. But remember - you also spent $5,000 acquiring those domains. That leaves you with a net profit of roughly $2,500 for the entire first year. That’s just over $200 per month. I don’t know what your monthly living expenses are, but I’m guessing they’re higher than $200. And remember… You also need to reinvest part of those profits into new domains to keep growing your portfolio. So your actual take-home income is even lower. My point is simple: If you don’t have a meaningful amount of capital and several years to build your portfolio, don’t set your expectations unrealistically high. That said, you absolutely don’t have to be a full-time investor to enjoy this industry. Invest what you’re comfortable investing. Make a little money here and there. Learn. Build. Grow. And most importantly… Have fun. I wish you the very best of luck. 🍀