Swetha's STR is low, the most sales she ever had in a year was 141 which works out to about 0.5%. That means if you own one xyz, the expected time to sell is about 200 years.
At her average selling price of around $20k, renewals would have to average less than $100 just for her to break even.
Yours was $540 per year, so statistically you should expect to pay $108,000 in renewals before it would sell, on top of the $6k acquisition price.
Even if you were hoping to sell it for $114k (almost six times Swetha's average) that would just be a break-even expected value.
This was essentially a very expensive lottery ticket with no burn-down value to the wholesale market due to the renewal.
I don't even think it's a good empty vessel for a brand, not many companies call themselves just "Luxury." It's too generic and more commonly an adjective than a noun, which begs people to react with "luxury what?" not "wow, nice brand". Look how the .com is used.
But the larger issue is that you didn't pick something which would work well for crypto and Web3, which are the types of companies that adopted the TLD. Luxury relates well to the physical world (cars, apartments, fashion, travel) not intangibles like crypto, NFTs, or other blockchain projects.
People need to understand that Swetha is playing a large numbers game with standard renewals, and as long as her average selling price is more than $3k she's guaranteed to win. Nobody else can play that game now because premium renewals will eat you alive. Negari cut out the middle man, which is all of us... let him.
Other investors who had random sales despite doing it on a small scale stacked the odds in their favor as much as they could. They had low acquisition cost and renewal prices, owned enough of them that they could reasonably expect a sale in their lifetime, took the time to understand the buyers and what they might demand, and then got very lucky on top of it.
That's my take on it anyway, as someone with no skin in this TLD.
Built with Insider.email