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GlossaryPortfolio and economics

Portfolio sale

A portfolio sale is the sale of many domain names in one transaction, usually to another investor or fund at a wholesale price per name, rather than selling each name to an end user.

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Also called bulk sale

Portfolio sale, explained

Buyers price a portfolio on evidence: its sales record, inbound inquiries, the renewal bill and how value is spread across the names. A few strong names usually carry most of the value, while the long tail mostly carries renewal cost. Sellers prepare a list with extensions, registrars, expiry dates and sales history, then close through escrow, with names pushed between accounts at the same registrar or transferred in bulk.

For an investor, a portfolio sale is the fastest way to exit or recycle capital, but it is priced well below the names' combined asking prices. Expect buyers to cherry-pick; selling only the whole lot, or pricing the best names separately from the tail, keeps you from selling the winners cheaply and keeping the renewals. As a buyer, check every name for trademark issues and renewal pricing, because the seller's problems become yours. Time transfers around expiry dates and registrar locks so nothing lapses mid-deal.

Example. An investor leaving the business sells a few hundred names as one lot to another investor, pricing the ten strongest names separately from the rest.

Go deeper How to Sell a Domain Name: A Seller's Guide

Education, not financial, legal or tax advice. Domain investing is speculative and most domain names never sell. Read the disclaimer.

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