Here is the dilemma domainers face on a daily basis. When registering or even just buying a domain name, would it be more worth it to sell it at a reseller value a few days later? Or might it be more worth it to keep the domain name for a few months, maybe even a couple of years, and hope an end-user comes along, willing to pay you much more then reseller value for the domain, and buys the domain from you then? Well, there are a couple of different ways you could look at this, because there are pros and cons for each technique, or ways you choose to deal with your domains.

We all like making some fast cash. And I think that’s why a lot of us do like reselling domains quickly, rather then being patient and waiting for that end-user to come along and pay a lot more money then you would get reseller value. I know I am guilty of reselling domains fast, and just feeling good I made profit at all. Personally, I believe the reason I do get rid domains so quickly is sparked by the low-point in the economy. For example, when the stock market crashes, a lot of people tend to sell their stocks as fast as possible. Now by no means am I trying to say the domain market has crashed, all I am saying is we are at a low-point in our economy, which does often scare people like myself. Others reasons for reselling quickly may be sparked for various other reasons.

While reselling domains for $10 or $15 is easy, and puts a smile on our faces knowing we made some quick, easy money, you need to look at the flip side of this entire situation. For example, lets say I register a domain name, and hold onto it for a while. Now I have had it for a year, and an end-user comes along, offering me $2,500 for my domain I registered for $7 only 1 year ago. That profit I would make off that transaction would definitely put more of a smile on my face then the $10 or $15 I would have probably gotten had I resold it right away after I had registered it.

I know this might be getting a little confusing at this point, but we need to look at another flip side to this situation. Lets say I register a domain name, and hold onto it for about 4 years, waiting for an end-user to come along and make me a fair offer. And now, for this situation, lets say that throughout the 4 years I’ve had this domain, not one end-user inquires about it. Then I would be looking at 3 years of renewal fees, adding up to about $30, along with the original registration fee for the first year of $7, which totals $37. One may look at $37 as nickels and dimes, but lets face it here folks, money is money, and it’s never good to lose money. I know I don’t like to take $37 of my hard earned money and flush it down the toilet. So now you are going to have to either A) wait longer and hope an end-user will eventually come along, while taking into account you are spending about another $10 per year for each additional year you keep the domain or B) resell your domain at a reseller value beating your original investment for the domain of $37, which could be very complicated to do, especially in the low-point in an economy, and very cheap buyers out there.

Now, in my personal opinion, I think there is more money out there in long-term investments, and holding out for that end-user to come along and offer you a 4 or 5 digit amount for your domain. At the same token, there is absolutely nothing wrong with buying a domain for $5 on the forums that you know has a high reseller value, but might not be as good for an end-user, and you just resell it for $20 or $25. All I am saying is I think it’s worth it to keep a lot of your domains, especially the ones you paid more then reseller value for (which isn’t very smart to do a lot of the time), and wait those couple of months or years to see where that takes you.

I would love to hear your comments on this, and what strategy you guys think is better. I hope you enjoyed the article and my opinion! Good luck domainers, go out and make some big money!