Readers share things they wish someone told them before they started investing in domains.
Last week I asked on Twitter, “What’s one thing you wish someone had told you before you started domain investing?”
We all wish we knew then what we know now. Here are some of the responses.
Frank J wrote: “Maybe I read it but the best to do at start is to manage a virtual portfolio Beside a tiny real one with low value names”
This seems like a difficult task because tracking when domains are sold and for how much would be hard. However, one way to test the investing waters without putting your own money at stake is to use Squadhelp and submit domains that aren’t registered yet. Here’s how that works.
Theo from DomainGang wrote: “That $100 dollars for 2 years was still worth it at a time when lots and lots of single word .com domains were available.”
Theo passed on this opportunity in the mid-90s. I feel his pain. I was in college in the late 90s and registered domains when they were $70 each. That was a lot of money for a college student. I should have registered many more.
Tehyah aka Deborah Thomas wrote: “Estibot gives exaggerated valuations for new gTLDs.”
I followed up to ask if she registered domains based on these appraisals, and she said she did. It wasn’t just Estibot. At least early on, GoDaddy appraisals were super high for non-.com domains.
Edwin Hayward wrote: “Don’t buy IDN. Just don’t.”
Ouch. I remember talking to at least one person who invested a substantial amount of money in IDN .com domains on the theory that they would explode in value when you could get the matching IDN.transliterationofdotcom when those became available. That didn’t pan out.
Todd Ryan wrote: “That 95% of domain investors are not profitable, and, of the 5% who are, less than 1/4 of them make more than 10k in profits per year. Less than 2% of domain investors find it financially worthwhile. (Of course these numbers are hard to verify but real domain investors know it’s true.)”
Todd obviously pulled these numbers out of the air, but I think the premise here is fair. Many people never get into positive cash flow. Even some of the people who brag about their big sales don’t mention that they have negative cash flow. There are easier ways to make guaranteed money than investing in domains. But it’s not as much fun!
Neil McCarthy wrote: “Trust in what you already know from your own life experience rather than trying to emulate what others know from having 20 years more experience in domaining which will never come around again. The loudest voices are not always the most wise.”
This is a good one. The advice of someone who bought a bunch of domains in the 90s isn’t as relevant to you as a newer domain investor who has figured out how to play the game in the past five years. You don’t have a time machine.
There were also several responses about if you should buy a lot of domains or focus on just a handful of really good ones. I fall into the first camp. If you have limited funds, I would choose volume (while still looking for decent quality) rather than buying one or two great names. But that’s a debate that will never be settled.
Perhaps the best advice is something that doesn’t have anything to do with domains. Page Howe wrote:
buy 100 shares of
amazon
google
facebook
nvidia
Bought 100shares of Starbucks home Depot Microsoft Amazon Tesla in 2000..thank you for all the splits.
Those so called domain experts domain Pro domain investors are fakers, bogus craps
NOs , failures and REJECTIONS are the best MOTIVATION in life
Domain investors don’t have time machines but the lessons of domaining are, for the most part, timeless. If you don’t learn or respect the “wisdom of the ages” – such as cash flow management – the odds are you won’t go far in the domain game. There’s a price that is paid for the learning. It’s the learning that leads to lasting.
Assuming that you have a day job…Rick’s strategy of collecting solid dot-com names is the best way to go. You do need a lot of patience, though.
Totally agree. MUST have a day job (unless you are wealthy) … then try to acquire good names.
Wish I started domain investing sooner.
But going all in on .COM since new gTLDS came out has paid off.
Limited funds or not I still think buying the best one or two word .com’s you can afford is the best way to go. Don’t expect to get rich quick or generate a residual income on a small budget. Just buy and hold the best you can afford. You are better off being that guy who owns shakes.com or the like vs that guy who owns 100’s of bleh domains.
True domain investors are few and far between and they risked their money on a conviction of an uncertain future and smiled at their tenacity with big sales.
What I learned from Morgan Linton my online mentor, I didn’t do it in several years and I regret not having listened.
I had to change and go back, risky in expired auctions and I have taken advantage.
Selling end user domains is difficult but you get used to it, the result is optimal if you know how to be patient.
I’d rather have 50 expired domains purchased at auction than have a portfolio of 3000 domains, I only have 15%, that’s a lot for me.
I first tried selling domains part-time in late 2016 and 2017. I read everything I could find on domaining, from (practically all of) Schwarz’s blog to Namepro posts etc. That first year I spent about $950 and made about $8000. I stopped in 2018, when GDPR went into effect; it was more difficult to get emails for outbounds. As someone who has had a business for 30 years, the idea of buying something and waiting for someone to come and buy is nonsense to me; it’s like playing the lottery. I’ve decided to get back into it, trying some new things. What I will not try is buying expensive names and wait to make money.
lol