Portfolio ROI can look very different from the return on a domain that sells. Names still held have acquisition and renewal costs, even when their appraisal estimates appear promising.
Measure completed proceeds against the defined portfolio costs for a stated period. Keep remaining inventory visible without treating modelled values as money received.
Define the basis consistently
For the examples here, proceeds are after selling charges. Net cash result is those proceeds minus acquisition, holding and attributable research costs. ROI divides that result by the same costs committed before the sales.
Selling charges are deducted once from proceeds. They are not added again to that stated denominator. Use a clear consistent convention when comparing your own records.
Identify the observation period, included names and other expenses excluded from the illustration.
A hypothetical twelve-name portfolio
Assume twelve domains cost £50 each, all receive a £10 renewal before any sale, and attributable research costs £60. The defined commitment is £600 plus £120 plus £60, or £780.
Two domains then sell for £500 each. Assume purely for illustration a 15% selling charge on both transactions.
| Item | Illustrative amount |
|---|---|
| Total gross sales | £1,000 |
| Assumed selling charges | £150 |
| Net proceeds | £850 |
| Defined portfolio commitment | £780 |
| Net cash result before other expenses or tax | £70 |
| ROI on that commitment | Approximately 9.0% |
| Remaining unsold names | 10 |
These are hypothetical transactions and costs. Sedo publishes service charges; substitute the actual terms of your chosen route.
Why sold-name results are incomplete
Considering only acquisition and renewal costs of the two sold names would omit money committed to the other ten. Those names may later sell, but a future possibility is not completed proceeds.
This does not establish that the unsold names have no market value. It separates observed cash results from unresolved inventory value.
Keep any valuation opinion and credible offer in another record with date, evidence and confidence.
Test another holding period
If the ten remaining names receive another hypothetical £10 renewal and no further sale occurs, £100 is added. The defined commitment becomes £880 while net proceeds remain £850.
The net cash result is then negative £30, or approximately negative 3.4% on £880. The same earlier sales now sit within a different cost period.
Use this kind of scenario before renewal rather than assuming a positive completed deal funds the portfolio indefinitely.
Link acquisition limits to buyer evidence
Research usable wording, relevant completed sales, rights and current purchase terms. An authority score does not establish market demand or future income.
Our resale evaluation guide supports the buying case. Our renewal guide connects costs with retention decisions.
Maintain the ledger and review
Record each acquisition, renewal, sale and attributable expense with dates. Avoid double-counting fees or assuming development costs will be recovered in a registration-only sale.
Our ROI guide develops the wider method. High portfolio ROI is an outcome to measure, with sale timing and remaining commitments preserved instead of relying on advertised prices or guarantees.