Sell-Through Rate in Domain Investing
Sell-through rate (STR) is the percentage of a domain portfolio that sells in a given period, usually a year — sell 6 names out of 300 and your annual STR is 2%. It is the single most important operating metric in domain investing, because it converts a static pile of names into an expected cash flow.
What a normal STR looks like
Sell-through rates of roughly 1-2% per year are commonly cited in the domain community for retail-priced portfolios, with higher rates generally coming at lower average prices. The two trade off directly: price aggressively and more names move; price for the end-user premium and fewer do. Neither is wrong — STR times average sale price, minus carrying costs, is what matters.
Using STR to run the numbers
STR makes renewal decisions quantitative. At a 1% STR, the average name waits many years to sell, accumulating a renewal fee every year it waits — so a name only earns its keep if its realistic sale price covers that accumulated cost with margin. Tracking your own STR requires clean records of listings, sales, and dates; portfolio tools like Sourdough compute sales analytics from the acquisition and sale data you already log.
Frequently Asked Questions
What is a good sell-through rate for domains?
Community discussion commonly treats around 1-2% per year as typical for portfolios priced at retail, but there is no audited industry statistic. The better question is whether your STR and average price together beat your renewal and acquisition costs.
How do I increase my sell-through rate?
The levers are pricing (lower BINs move more names), distribution (landers plus multi-marketplace listings), and inventory quality. Raising STR by cutting prices only helps if the portfolio stays profitable per name.