To build a profitable traffic domain portfolio, it is important to keep an eye on registration costs vs accrued parking revenue. The goal is to become cashflow positive each month when combining parking revenue and sales. A typical monthly cash flow positive portfolio would consist of no more than 50% domains for resale and ideally 70% traffic domains, 30% domains for resale.
When deciding which domains to keep and which to drop there are a few points to consider:
- Does the domain make a profit?
- If so, set the domain to auto-renew or auto-bill for more than 1 year if it has been continuously profitable.
- Has the domain received sales offers in the past 36 months?
- If so, set it to auto-bill.
- Does the domain receive consistent monthly traffic and is this valid traffic? i.e. not bot/spam traffic? A typical threshold would be domains that receive more than 30 or 60 views per month.
- Review for sales leads.
- Does the traffic derive from potential users looking to purchase the domain? Can you see similar domains in use?
- If so, set the domain to auto-bill.
- Is the domain underperforming?
- Before deciding to ‘drop’ the domain, is it worth renewing the domain for a further year with a view to optimizing the domain, for example, setting relevant terms when irrelevant terms are being shown?