--- title: "Blog Series: From Entry to Exit, An Approach on How to Level Up Your Portfolio with Grit!" description: "A four-part series for domain investors on buying, selling and reinvesting. Part one covers five acquisition checks and why discipline matters most." url: https://gritbrokerage.preview.multisites.ai/post/blog-series-from-entry-to-exit-an-approach-on-how-to-level-up-your-portfolio-with-grit publisher: Grit Brokerage contact: https://gritbrokerage.preview.multisites.ai/contact offer: https://gritbrokerage.preview.multisites.ai/inquiry --- [Domain guides](https://gritbrokerage.preview.multisites.ai/blog?topic=domain-guides) # Blog Series: From Entry to Exit, An Approach on How to Level Up Your Portfolio with Grit! This four-part series guides domain investors from buying to reinvesting, with one Grit Factor per part. Part one, on proper entry, argues discipline matters most when acquiring domains. It lists five checks, from trademark issues to due diligence, and notes 95% of domain names are not liquid assets. By Grit BrokerageSep 10, 20213 min read ![Four-part blog series on building a domain portfolio from entry to exit with Grit](https://gritbrokerage.preview.multisites.ai/_astro/a53ed9_9ff977269b3141a7b7e5f2aa2ebf6065.9P5AHliV_30jD5.webp) _This is a four part series designed to help domain investors make good decisions on building a portfolio, marketing domains for sale and reallocating profits. We have identified one_ **_Grit Factor_** _for each section that is a key to domain investing success._ **Parts in this series:** \* Proper Entry - Make good acquisitions, Grit Factor: Discipline \* Once you have a solid portfolio, what next? - Where/how to sell, Grit Factor: Research \* Outbound Marketing and Dealing with Buyers - Patience and Persistence \* Reallocating profits - Rinse and repeat or level up? Grit Factor: Calculated Risk **Part One - Proper Entry - Making Solid Acquisitions, Grit Factor: Discipline** Beginning the journey as a domain name investor is not an easy task, just ask the hundreds of ‘domainers’ that have jumped in and started buying domain names without fully understanding domain name values or what kinds of domains sell. Too many times, this ends up badly with an investor sitting on a pile of names they are not able to sell. So, it sounds like the Grit Factor for this piece should be _Research_. As important as that is, the most important part of assembling a quality domain portfolio is using _Discipline_ when making acquisitions. It seems really easy to come up with a lot of cool sounding domain names but before you register (or buy a domain on the aftermarket) it is important to consider many different factors: 1. Does the domain have obvious trademark issues? (see [trademarkia.com](http://trademarkia.com/)) 2. Is the domain easy to say, spell and remember and how many other extensions is it taken in? (see [DotDB](http://dotdb.com/)) 3. Are there multiple potential buyers for the domain? (search [Linkedin](http://linkedin.com/) and [Crunchbase](http://crunchbase.com/)) 4. Do you understand the wholesale (liquid) value of the domain VS the retail potential? (use [NameBio](http://namebio.com/) and [DNJournal](http://dnjournal.com/) to see previous sales). 5. Due diligence - are you buying from the rightful domain owner? is it a stolen domain or has there ever been any litigation filed against previous owners of the domain for how they used it? Has the domain been used for spam previously and now banned in Google? (use [DNProtect.com](https://dnprotect.com/) to check) The discipline aspect really comes into play at the crucial moment when you decide to buy or pass on the opportunity to buy a domain name. It is extremely important to remember that while domains are essential for anyone doing business online, 95% of domain names are not liquid assets (meaning you are not likely to be able to sell it for even what you bought it for right away if needed). Your objective should be to acquire domains that are undervalued and once acquired, they will likely take some time to appreciate to the point you will be able to profitably sell. There are plenty of domain flippers out there and some do very well, but I can guarantee that they did not get good at it without a lot of practice, making mistakes and ultimately learning how to make extremely disciplined buys. One tip when buying that has helped many domain investors I’ve talked to over the years is when you are ready to buy a few domain names, it is a good idea to put them all in a list first. Once you have the list set, put it aside for a few hours! When you come back to it, go back through and use the 5 steps above (again) to remove at least half of the domains that you were considering buying. You’ll be surprised at how easy it is to find ones in that list that don’t make the cut when you revisit after a break. For readers that are looking to acquire specific domains on the aftermarket but are not having luck tracking down the owners, we at Grit Brokerage have helped domain investors and many businesses alike acquire domain names at almost every price range. Whether buying domains for only a few hundred dollars or helping businesses acquire their dream domain name, either way, [Grit Brokerage](https://gritbrokerage.preview.multisites.ai/contact) is here to help. ! ## Questions this post answers ### What should a domain investor check before buying a domain? The post lists five checks: trademark issues, how easy the name is to say and spell, whether multiple buyers exist, wholesale versus retail value, and due diligence on the seller. Due diligence includes stolen domain history, litigation and past spam use. ### What are the four parts of the series? Part one covers proper entry, with the Grit Factor of discipline. Part two covers where and how to sell, with research. Part three covers outbound marketing and buyers, with patience and persistence. Part four covers reallocating profits, with calculated risk. ### Are most domain names liquid assets? No. The post says 95% of domain names are not liquid assets, meaning you are unlikely to resell one for what you paid right away. It advises buying undervalued names that may take time to appreciate. ## Terms in this post - [Due diligence](https://gritbrokerage.preview.multisites.ai/glossary/due-diligence) - [Aftermarket](https://gritbrokerage.preview.multisites.ai/glossary/aftermarket) - [Domain name](https://gritbrokerage.preview.multisites.ai/glossary/domain-name) - [DNJournal](https://gritbrokerage.preview.multisites.ai/glossary/dnjournal) - [Trademark](https://gritbrokerage.preview.multisites.ai/glossary/trademark) - [NameBio](https://gritbrokerage.preview.multisites.ai/glossary/namebio) - [.com](https://gritbrokerage.preview.multisites.ai/glossary/dot-com) ## Keep reading - [Part Four - Reallocating profits - Rinse and repeat or level up? Calculated RiskPart 4 of the domain investing series covers reallocating profits after a sale. Investors should weigh holding time, carrying costs and taxes, stick with what worked, decide between one premium name or several, and stay picky because the average investor sells only 2% to 4% of their portfolio annually.](https://gritbrokerage.preview.multisites.ai/post/part-four-reallocating-profits-rinse-and-repeat-or-level-up-calculated-risk) - [How Much Is My Domain Worth? Domain Valuation ExplainedA domain is worth what a specific buyer will pay for it. Start with comparable sales of similar names, then adjust for length, extension, keywords, and brand fit. Treat automated appraisals as rough guides. The same name can be worth far more to an end user than to an investor.](https://gritbrokerage.preview.multisites.ai/guides/domain-name-valuation) - [Domain Names and Trademarks: UDRP, Cybersquatting, and How to Buy SafelyThe UDRP is a fast, low-cost ICANN process that lets a trademark owner ask a panel to transfer a domain name. The owner must prove three things: the name is confusingly similar to its mark, you have no legitimate interest, and you registered and used it in bad faith. Owning a brand word alone is not enough.](https://gritbrokerage.preview.multisites.ai/guides/domain-trademark-udrp-risk) - [How to Negotiate a Domain Name Purchase Without OverpayingSet a walk-away price before you write. Open below your target, but not insultingly low. Use comparable sales as evidence, keep your identity and budget private, move up in small steps, and close through escrow. If the price passes your ceiling, walk away.](https://gritbrokerage.preview.multisites.ai/guides/negotiate-domain-purchase) - [LLL, NNN, and 4-Letter Domains: How Short Domains Are ValuedA three-letter .com is usually worth what a corporate acronym buyer will pay, not a fixed multiple. Public sales run from under $20,000 for weak letter sets to well over $100,000 for strong ones. Value depends on the letters, whether they form an acronym or word, and how many companies could use them.](https://gritbrokerage.preview.multisites.ai/guides/short-domain-value) - [A Brief Overview of .io Domain NamesThis guide explains the .io domain extension. It is reserved for the British Indian Ocean Territory but open to anyone. Tech companies favor it because IO means input/output. The post covers high prices, safety tips such as two-factor authentication and private Whois, and wordplay options like Pistach.io.](https://gritbrokerage.preview.multisites.ai/post/io-domain-names) ## Buying or selling a domain? Call, text or email. Responsiveness is our trademark, and a broker answers, not a form robot. [Talk to a broker](https://gritbrokerage.preview.multisites.ai/contact) [Call (442) 500-GRIT](tel:+1-442-500-4748)