Short acronyms are very liquid domains. It means they are in high demand and they change hands very often. This generates a lot of activity in the aftermarket from the domainers we call flippers.
On the other hand, acronyms also represent a huge potential of high revenues so another type of domainers simply refuse to sell their domains cheap and are asking for a very high price. They are called the long-term holders.
Let’s have a deeper look at both kind of domainers.
This type of domainer is not looking for a home run return on investment. He his driven by fast smaller profits. His business model is based on volume. He must buy as many domains as possible and immediately try to find a buyer to dispose of them. He usually don’t accumulate a large inventory.
Even if he knows he might be holding to a great domain, it is not important for him, he will still flip the domain at an affordable price and restart the process. Any profit from 10% and up is satisfying.
This business model is extremely demanding. The domainer has to deal with a lot of different people and a lot of domain transfers. But it is a very profitable technique.
The long-term holder
This type of domainer acts in a completely different way. He is not looking for small profit, he his ready to wait for as long as it will take for the right buyer to show up. His business model is based on high margin.
He usually acquires high quality domains and ask for a super premium price.
It requires much less effort. A single sale by this domainer could bring more profit than a hundred sales from the flipper, but there is a risk that the big sale might never come.
What kind of domainer are you?