Diversification and domain investing strategy – DNW Podcast #504
Oct 14, 2024
auto_awesome
Nikul Sanghvi, an adept domain investor renowned for his strategy with .co domains, shares insights on diversifying investments. He discusses the transition to newer extensions like .io and .so while navigating risks associated with country-code domains. The conversation includes the evolution of domain sales strategies, emphasizing how loading times greatly impact purchasing success. Nikul also tackles the influence of aftermarket platforms and the critical role of optimizing landing pages for enhanced sales performance.
Nikul Sanghvi emphasizes the importance of diversifying domain investments beyond .co to include various extensions like .io, mitigating risks and capitalizing on growth potential.
He discusses the evolving domain sales landscape, highlighting the complexities of tracking sales metrics and the need for careful evaluation due to recent market changes.
Deep dives
Diversifying Domain Investments
Nicol Sangvi discusses his strategic shift in domain investing, moving from a heavy reliance on .co domains to diversifying his portfolio with other extensions like .io and .so. He highlights that while .co previously comprised around 90% of his investments, this has now dropped to roughly half. This transition reflects a broader trend in the domain market, where Sangvi has begun focusing on repurposed country-code top-level domains (ccTLDs), which he believes offer strong potential for growth. His focus on higher-quality .com domains has also increased, though they still represent only about 5% of his overall portfolio.
Sales Trends in .co and .io Domains
Sangvi notes that the market for .co and .io domains has seen fluctuations over the past few years, especially after a strong surge during the COVID-19 pandemic. He believes that while sales in lower ranges (around $2,000 to $7,000) for .co have remained relatively stable, high-end sales have seen a marked decline. In contrast, .io domains have fared somewhat better, despite also experiencing challenges. This decline is attributed to the rising popularity of .xyz and .ai domains, particularly among startups and companies within the tech industry.
Sales Strategy and Marketplace Dynamics
Sangvi describes his sales strategy, which involves using various platforms like Afternic and Dan.com to reach potential buyers. He emphasizes the importance of understanding the split between sales generated through his landing pages versus those sourced through the Afternic network. Recent changes in the domain sales landscape, including the merging of platforms and changes in commission structures, have made tracking these sales metrics increasingly complex. There is a growing concern among investors about the impacts of such changes on overall sale visibility and the efficacy of different landing page options.
Navigating Challenges in Domain Registrations
Sangvi expresses some concerns regarding the stability of certain ccTLDs, such as .so, given the geopolitical instability of Somalia. He notes that while he has found success with hand registrations at lower prices, investing significantly in volatility-prone domains could expose investors to greater risks. The conversation highlights the importance of carefully evaluating potential investments in less stable ccTLDs while balancing the overall risk profile of a domain portfolio. This cautious approach guides his investment decisions, reflecting a need for due diligence and strategic market positioning.
Nikul Sanghvi talks about diversification, Afternic Boost and more. My guest this week is domain investor Nikul Sanghvi. Nikul made a big entranace to domain investing with a successful bet on .co domains, but has since diversified his portfolio. However, .com remains just a small sliver of it, proving that there are ways to make […]