New domain investors are being fed a load of crap.
I love when new domain name investors get hooked on domains. They discover the excitement that many DNW readers have experienced for years. Domain investing is fun and can be lucrative. But it’s also full of pitfalls.
Which brings me to what’s happening on Clubhouse, a fast-growing app akin to live call-in radio shows.
Last week, I wrote about how Clubhouse is driving a surge in registrations for .club domain names. Over the past several days, I’ve listened in on several discussions and researched to understand exactly what’s happening on the app. It’s been disturbing.
It seems that a large portion of the surge in .club has come from people who think .club is the hot new investing opportunity. Someone brought up the idea of .club domains gaining value because of Clubhouse several weeks ago and it caught fire. People started hand registering .club domains and buying up premium domains.
It’s fine to come to your own conclusion that Clubhouse’s success will lead to companies and people registering .club domains. It certainly won’t hurt .club. It’s also fine to make bad domain investments — we all have.
What’s disturbing is the amount of questionable advice being doled out by people who are either brand new to domain investing or trying to make a buck off of it by peddling a $2,000 course that’s still under development.
Some of the people doling out this advice are also very defensive, with some trying to discredit those that want to help new domain investors avoid mistakes.
In a call yesterday, one person said that the reason domain investors are telling people to be careful with their investments is that those domain investors are busy snapping up all of the .club domains and don’t want others to get in on it. There’s also a lot of classic bubble talk about landrushes, getting in early, etc.
It’s a problem when so-called experts give people unrealistic expectations about their hand-registered 99-cent domains. When they mislead them into making more bad investments. And when they tell people not to listen to the “naysayers” who are only trying to help.
Last night I listened to a couple of people talking about how they jumped in headfirst this month. They regretted spending so much money on domains before getting their head around it. One of them mentioned how they got their siblings in on it too, and they’ve been registering domains nonstop. They now realize they wasted a lot of money.
This regret is a right of passage in domain investing. But it’s troubling when people push new investors down this path.
Look, we can disagree about the best way to invest in domains. NamePros (and heck, the comment threads on DNW) are full of debate. That’s OK. What’s been happening on Clubhouse is different. There’s a lot of snake oil and it has caused many people to lose money.
There is good news, though. Many domain investors have joined Clubhouse in recent days. This morning, two concurrent sessions are going on with domain investors answering questions. I’m currently listening to Adam Strong suggest tools people can use and how to optimize for sales. Josh Reason is in another room answering questions.
These guys are setting realistic expectations. They’re not trying to sell anything. They’re trying to help people out.
So I encourage all domain investors with peoples’ best interests at heart — join Clubhouse. Let’s help new domain investors rather than send them down the wrong path.