Is Your Domain Portfolio Actually Profitable?

Every domainer knows their best domains. The ones that get inquiries, the ones they're holding out for the right buyer, the ones they brag about at conferences.

But here's a question that keeps coming up: Is your portfolio actually profitable?

Not your best domains. Your portfolio. All of it. The winners, the hopefuls, and the ones you've been renewing "just one more year."

The Math Nobody Wants to Do

Note: This analysis focuses on ongoing profitability - whether your portfolio can sustain itself through sales minus renewal costs. Total ROI would also factor in acquisition costs, which vary wildly (hand-reg at $10 vs. aftermarket purchase at $5,000). For most domainers, knowing if the portfolio is self-sustaining is the critical first question.

Portfolio profitability comes down to a simple formula:

The uncomfortable part is the Sale Through Rate (STR) - the percentage of your portfolio you'll actually sell in a year.

Industry estimates vary, but here's the reality:

• 2% STR - Aggressive pricing, active marketing
• 1% STR - Balanced approach (industry baseline)
• 0.5% STR - Premium pricing, passive selling

For a 500-domain portfolio, 1% STR means selling 5 domains per year. That's it.

Where Portfolios Go Underwater

Let's say you have 500 domains worth an average of $1,000 each (total value: $500,000). At 1% STR, you'd sell $5,000 worth per year.

Now subtract renewal costs. At $10/domain average, that's $5,000/year just to keep the lights on.

Net profit: $0.

And that's with optimistic numbers. Many portfolios are quietly underwater - renewal costs exceeding realistic sales projections - and the owner doesn't realize it because they're focused on individual domain values, not portfolio math.

The Value Distribution Problem

Portfolio health isn't just about total value. It's about distribution.

A portfolio with:

• 50 domains worth $5,000+ each
• 100 domains worth $1,000-$5,000
• 350 domains worth under $500

...has a very different profitability profile than one with evenly distributed value. Those 350 low-value domains might cost $3,500/year to renew while contributing minimal realistic sales potential.

Running the Numbers

We built the Portfolio Analyzer specifically for this. Drop in a list of your domains and it calculates:

• Value distribution - How your portfolio breaks down by tier
• Profitability projections - Three scenarios (aggressive, moderate, passive)
• Renewal cost analysis - What you're spending vs. projected returns
• Actionable recommendations - Where to focus, what to consider dropping

The goal isn't to make you feel bad about your portfolio. It's to replace gut feelings with data so you can make informed decisions about renewals, pricing, and where to focus your energy.

The Hard Conversations

Sometimes the analyzer tells you things you already suspected:

• "Your renewal costs exceed projected revenue at moderate estimates"
• "X domains valued under $100 cost $Y/year to maintain"
• "Consider focusing marketing efforts on your top 20% by value"

These aren't fun to hear. But they're better than discovering it when the renewal invoice arrives.

Try It Yourself

If you've got appraised domains on Appraise.net, you can run a portfolio analysis right now:

1. Go to Domain List and paste your domains
2. Save the appraised ones to a list
3. Open Portfolio Analyzer
4. Select your list and click Analyze

For more details on reading the results, see our help articles on using the Portfolio Analyzer and understanding the profitability analysis.

The best time to know your portfolio numbers was before your last renewal cycle. The second best time is now.