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Here it is – my interview with Giuseppe Graziano on investing in liquid domains

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Many of you already know Giuseppe, but in case you don’t, he’s one of the top minds in the liquid domain space and publishes quarterly reports on the liquid domain market at GGRG.com[1]. He actually just released his latest report this week which was highlighted in DNJournal[2] yesterday.

As I’m looking at shifting my own investment strategy to focus more on liquid domains next year I really wanted to pick Giuseppe’s brain. Then I thought, why not turn it into an interview that I can share with all of you? Huge thanks to Giuseppe for taking the time to answer these questions, first a quick disclaimer and then onto the interview!

Disclaimer: The minimum entry tickets, prices indications, and advice in the interview are for information and illustrative purposes only. Any of the information mentioned in the interview should not be regarded as investment advice or as a recommendation regarding any particular domain purchase or course of action. 

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1. If an investor is looking to build a liquid portfolio, would you recommend numeric domains, letters, or a combination of both?

 

There are 2 ways to answer this question based on 1) how much money you can invest and 2) if you are a buy-and-hold type of guy versus a trader who likes quick flips.

 

Let’s look first at #1, the entry tickets. If you are starting out, I would definitely go for the least expensive liquid categories like the 4 letter .com (4Ls) domains, the 5 number .com (5Ns) domains and the 3 characters .com (3Cs) domains. These categories have a $100+ entry ticket and are accessible (and recommended) to most newbies. When you graduated from the low ticket items, you can move up the ladder to 3Ls, 4Ns, and 2Cs, which have a $10k+ entry ticket. These categories are less liquid because of their steeper price. Finally, for the high-stakes pros, there are the premium items like the 2Ls, 2Ns, and 3Ns, with an entry ticket of $100k+. 

 

About your investing style: if you prefer a buy-and-hold strategy, (i.e. you buy a domain and then you are comfortable waiting for an end user), I would look at the most developed categories, which are the ones with the highest percentage of end-user ownership. We call that percentage “development index”. According to our latest LXDO report (which we publish quarterly in collaboration with Escrow.com, Intelium, and ShortNames, and which you can receive for free by signing up for our newsletter at ggrg.com[3]) the most developed categories are the 2 letter .com (35%), followed by the 3 letter .com (28%) and, finally, the 2 characters .com (26%). If you are looking instead at making frequent trades with smaller margins, I would look at the most traded categories like the 4Ls, 5Ns, and 3Cs. These are the categories which register a quarterly turnover higher than 0.5%. What does this mysterious quarterly turnover number mean? It means that the market for those domains is very active (thousands of transactions per quarter) and it is easy for you to resell your domain if you want to.

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Categories:3L Domain Buyers

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