--- title: "Part Four - Reallocating profits - Rinse and repeat or level up? Calculated Risk" description: "Part 4 of Grit Brokerage's domain investing series on reallocating profits: weigh carrying costs, stay in your niche and avoid rushed buys after a big sale." url: https://gritbrokerage.preview.multisites.ai/post/part-four-reallocating-profits-rinse-and-repeat-or-level-up-calculated-risk 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) # Part Four - Reallocating profits - Rinse and repeat or level up? Calculated Risk Part 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. By Grit BrokerageMay 13, 20223 min read ![Domain investor reviewing profits to reinvest in a domain portfolio](https://gritbrokerage.preview.multisites.ai/_astro/a53ed9_eeed6cc1fd1f4217aed27ad09172ac7d.CbzD4su3_ZEdfzx.webp) _This is the last part of our 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](https://gritbrokerage.preview.multisites.ai/post/blog-series-from-entry-to-exit-an-approach-on-how-to-level-up-your-portfolio-with-grit) \* [Once you have a solid portfolio, what next? - Where/how to sell, Grit Factor: Research](https://gritbrokerage.preview.multisites.ai/post/level-up-your-portfolio-with-grit-part-2) \* [Outbound Marketing and Dealing with Buyers - Patience and Persistence](https://gritbrokerage.preview.multisites.ai/post/part-three-outbound-marketing-grit-factor-patience-persistence) \* Reallocating profits - Rinse and repeat or level up? Grit Factor: Calculated Risk **Part Four - Reallocating profits - Rinse and repeat or level up? Calculated Risk** You’ve figured out how to acquire solid domains, a strategy to market and sell them and have made your first sale, great! Assuming the sale was profitable, you’re likely to start looking for additional domain names to acquire. It can be a good idea to consider reallocating some of the proceeds from a domain name sale to increase your portfolio size. But before jumping right into more acquisitions, it is important to consider how long it took you to sell that particular domain to get the realized return, how many other domains you have sold in that same time period and how much you will need to set aside for the annual carrying costs that come with holding your portfolio and other fees, taxes, etc. Once you’ve decided on a reasonable percentage that you are ready to re-allocate back into new domains there are several calculated risk factors to consider. 1. What brought you success in your previous sales? A lot of successful investors focus on one or several specific types of domains (one word, short, geographical) and/or other niches. Everyone has a hobby, skill or profession that they have insight into and many domain investors naturally acquire great names specific to their interests and areas of expertise. Try not to stray away from what worked for you in the past by chasing a fad or allocating too much into an unknown niche. 2. Should you reallocate into one spectacular name or a few nice domains with solid resale potential? Scaling up into higher tier domains is usually a smart move but it’s important to understand that even premium domains are not highly liquid assets and the best returns usually come with a lot patience. If you make a large acquisition, be sure you are ready to have that capital in the domain for a while or that you are buying it cheap enough to get liquid without taking a loss. 3. Ok, you landed a nice sale and have some fresh capital to deploy. Time to go straight to the marketplace and hunt down some deals or check TechCrunch for the newest trend and register a bunch of new names…right!? Many inexperienced investors can be too trigger happy and buy names quickly with less research after their first sizable domain sale. Remember that most domains are not liquid and the average domain investor only sells 2%-4% of their portfolio annually. Stay picky and make disciplined acquisitions as we discussed in part one, rinse and repeat. We hope you’ve enjoyed this _Entry to Exit, An Approach on How to Level Up Your Portfolio with Grit!_ Blog post series. As always, if you have any domains you need help with or are in need of acquiring a domain name you can [contact](https://gritbrokerage.preview.multisites.ai/contact) any of our brokers directly. Happy investing! ! ## Questions this post answers ### What should I consider before reinvesting domain sale proceeds? Consider how long the domain took to sell, how many others sold in that period, and how much to set aside for annual carrying costs, fees and taxes. Then choose a reasonable percentage to reallocate into new domains. ### Should I buy one premium domain or several smaller ones? The post says moving into higher tier domains is usually smart, but even premium domains are not highly liquid and the best returns usually take patience. A large purchase means being ready to leave the capital in the domain for a while. ### How many domains does the average investor sell? The post says most domains are not liquid and the average domain investor sells only 2% to 4% of their portfolio annually. It warns inexperienced investors against buying quickly with less research after their first sizable sale. ### Why stick to what worked before? Successful investors often focus on specific types of domains, such as one word, short or geographic names, or niches they know. The post advises not to chase a fad or put too much into an unknown niche. ## Terms in this post - [Domain name](https://gritbrokerage.preview.multisites.ai/glossary/domain-name) ## Keep reading - [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.](https://gritbrokerage.preview.multisites.ai/post/blog-series-from-entry-to-exit-an-approach-on-how-to-level-up-your-portfolio-with-grit) - [Level Up Your Portfolio with Grit, Part 2Part 2 of a four part series for domain investors explains where and how to sell domains. It compares quick flip venues like NamePros with marketplaces such as Sedo and Afternic, which charge 15 to 20 percent, and brokers who charge 10 to 20 percent, require exclusivity and specialize in outbound marketing.](https://gritbrokerage.preview.multisites.ai/post/level-up-your-portfolio-with-grit-part-2) - [Part Three - Outbound Marketing - Grit Factor: Patience & PersistencePart 3 of the domain investing series explains outbound marketing for domains. Investors can hire a broker or contact buyers themselves by email, phone or LinkedIn. The post stresses patient, spaced follow-ups over a month, transparency, useful data and closing through a trusted third party like Escrow.com.](https://gritbrokerage.preview.multisites.ai/post/part-three-outbound-marketing-grit-factor-patience-persistence) - [.com Price Increase November 1: What Owners Should Do NowVerisign raises the wholesale .com price 7%, from $10.26 to $10.97, on November 1, 2026, plus ICANN's 20-cent fee. Renewing or transferring before then postpones the rise. You can renew up to 10 years. Verisign may add up to 7% in each of the next three years.](https://gritbrokerage.preview.multisites.ai/post/com-price-increase-november-2026) - [Grit.org Podcast #37 with Grit Brokerage now live!Grit.org Podcast episode 37 features the Grit Brokerage team on closing deals and planning for 2024. Maureen Sullivan shares two acquisition stories, including CannabisTravelAgency.com. Brian Harbin explains three goal planning mindsets, and Michael Law describes his domain investing journey. The recurring theme is that grit drives results.](https://gritbrokerage.preview.multisites.ai/post/grit-org-podcast-37-with-grit-brokerage-now-live) - [.com vs .ai vs .io vs .co: How to Choose a Domain Extension.com is still the safest default because buyers, investors and email systems expect it. Choose .ai if your product is AI and you accept higher renewals. Choose .io for developer tools with some registry risk. Choose .co mainly as a cheaper fallback. Whatever you pick, try to own the .com too.](https://gritbrokerage.preview.multisites.ai/guides/com-vs-ai-vs-io-vs-co) ## 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)