I was watching The Profit the other night and it was the episode where the guy was running a car dealership, yet he had no good inventory. What he had was not what people wanted, and as a result, it was old inventory. Marcus told him he had to slash prices, and even perhaps take a loss to stop the monthly losses from the dealership and find some new cash to buy inventory that the market actually wanted.
Today as I looked at my domain portfolio, I realized that I have a problem. I have lots of inventory. I have old inventory. I have domains that I thought should bring more money than the offers they were getting. I have domains that I have paid too much for and others that I have spent too much developing. I even have several domains where I have turned down offers that I would welcome today.
What I Learned
- Sometimes it’s better to have cashflow than an “asset”, even if it means taking a loss. According to Robert Kiyosaki, it’s not an asset if it doesn’t make money anyhow.
- If I sell a domain name for less than what I am asking I am not really taking a loss because I already took the loss.
- It feels good to move inventory.
Domains are Online Real Estate
Realizing that domains are simply a form of online real estate, I know that “price cures everything” so I decided I would liquidate a handful of project domains and dormant domains.
So thanks to Marcus Lemonis (“The Profit”) I have discounted many of my domain names for liquidation. Many of these are seasoned domain names, some have websites attached to them, and some used to be very profitable businesses.