What Is Liquidity? Domain Glossary

Why it matters

Short, clear .com names tend to be more liquid than rare extensions or niche phrases. Liquidity affects pricing. A seller who needs cash fast must accept less. A seller who can wait can hold out for an end user. Check your sell-through rate to see how liquid your portfolio is. A common mistake is valuing an illiquid name at a high price and then being surprised when no buyer appears.

Source: en.wikipedia.org

Where we use this term

Related terms

Sell-through rate (STR): The share of a domain portfolio that sells in a year. For example, a 1% rate on 1,000 domains means about 10 sales a year.
Carrying cost: Carrying cost is the total expense of holding a domain over time, mainly yearly renewal fees plus any listing, parking, or management costs. Owners count it against the expected sale price.
Wholesale value: The price an investor or reseller would pay for a domain to resell it later. It is usually well below the price an end user would pay for the same name.
End-user value: End-user value is what a domain is worth to a business that will use it, not to an investor who will resell it. It is also called retail value and is usually higher than wholesale.
Portfolio sale: A portfolio sale is the sale of many domain names in one deal, often by an investor who is exiting or by a company that is cutting its holdings. The price covers the whole set.

All 205 terms

Why it matters

Where we use this term

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