When is it okay to take a huge leap?

NameTrader.com · 09-05-2007, 05:27 PM

I'm not talking about for instance getting a name that you can easily afford or even barely afford. I'm talking about figuring out a way to get a name you pretty much CAN'T afford because you are SO SURE of its potential for resale or development.

It's safe to say we all sometimes see names way outside our limits and go "man, if I had the money, I'd get that in a heartbeat". So I guess the question is, what if you could via credit/loans/VC/quick sales of your domains/etc. get that money to get that name and while you'd have to put up with maybe some fiscal discomfort or possible regret of quick sales or whatnot for a while, you'd have this amazing name that would either net you an amazing quick profit OR be the foundation for a successful developed website you want to make. How would YOU determine whether or not to make that leap?

It's one thing if it was a million dollar name and you didn't even have $100,000 total in money and liquid value in your domains because that's pretty much a pipe dream, but what if you had $100k total in money and liquid value in your domains and were eyeing a $150k - $200k domain?

stub · 09-05-2007, 05:37 PM

Interesting thoughts. I did this on a MUCH smaller scale about a year ago. Spent 12K on a domain which is still languishing in my account with little traffic. I think I made a mistake.

If you are spending that kind of money, then I'm not so sure you could make a quick flip. You'd probably need to develop the domain (more money) and hold.

NameTrader.com · 09-05-2007, 05:51 PM

Quote:

Originally Posted by stub

Interesting thoughts. I did this on a MUCH smaller scale about a year ago. Spent 12K on a domain which is still languishing in my account with little traffic. I think I made a mistake.

See, I've done that kind of leap. I mean really, any time you spend more money than you've ever spent on a domain, it's a leap because it's more risk than you've ever taken on. Poker.in was a leap for me, more than twice what I had spent on a domain up til that point. Granted it took 2 years to finally get it sold, but 2,000% in that 2 years. That kind of leap vs. what I'm talking about are 2 different beasts altogether. I mean I know this kind of thing can work out (i.e. the GolfCourses.com guy putting a mortgage on his house to buy that name), but you never hear about the cases when it doesn't. :O

**Spade** · 09-05-2007, 05:53 PM

Steve,

I hear your plight, and am experiencing something on the same level. I dont have the capital or the stability to attack a $100,000 + domain name, however I am looking at targeting a low xx,xxx domain name.

I took out a loan (thanks to good credit!) and extended the payments out to the max, giving me nice expendable capital, with a very small monthly payment. My hope, to acquire a domain name that generates at min, the same amount of rev per month, it is costing for the loan....

Justin

cache · 09-05-2007, 07:41 PM

Since the domain business is not as liquid, you should not take that big gamble and
wait for many years.

Michael · 09-05-2007, 08:40 PM

You seem to have good instincts... I would trust them.

James · 09-05-2007, 09:05 PM

I think you need to have the guts to pull off the huge leap in the first place.

you shouldn't go in full speed but you should have 85%+ confidences that this is the right move and be able to live it tough.

Personally i'd buy a big revenue name and hold onto it and then sell it and look into another or afew more names. You got to make sure you can cover it if something goes wrong though. you don't want to be left trying to scrap up pennies to pay the bills for the month.
Its all about planning and making sure you got a back-up plan

Smiler · 09-05-2007, 10:46 PM

Quote:

Originally Posted by knivesforapro

I think you need to have the guts to pull off the huge leap in the first place.

you shouldn't go in full speed but you should have 85%+ confidences that this is the right move and be able to live it tough.

Personally i'd buy a big revenue name and hold onto it and then sell it and look into another or afew more names. You got to make sure you can cover it if something goes wrong though. you don't want to be left trying to scrap up pennies to pay the bills for the month.
Its all about planning and making sure you got a back-up plan

I definitely agree with knivesforapro. You've got to have plan B and C before approaching plan A. You know you can actually put that money on a down payment for a nice house in San Diego right now. Its just a suggestion. Well, good luck with your decision and I hope that it all work out for you.

TheLegendaryJP · 09-05-2007, 10:55 PM

It's not always what you know but also who you know. Invest big for a big flip you say, to whom ? Only a handful of people in the WORLD would pay you 6 figs . Better know them or most of them NT. If a flip is what you are looking at.

**mellowmasher** · 09-05-2007, 10:57 PM

Ok first off Steve Ive seen your posts around and your comments and... nobody knows everthing but you appear to have a solid knowledge and good gut feeling about the domain world..

I have got a feeling that if you are not already a profitable full time domainer, ... you will be

James · 09-06-2007, 12:39 AM

Quote:

Originally Posted by Smiler

I definitely agree with knivesforapro. You've got to have plan B and C before approaching plan A. You know you can actually put that money on a down payment for a nice house in San Diego right now. Its just a suggestion. Well, good luck with your decision and I hope that it all work out for you.

Well if you look at it as a income you could pay off the domain loan, still work and still put down a payment for a nice house, you just need to think every aspect over before jumping into it

Lenz · 09-06-2007, 03:16 AM

My 2c: With the rapid appreciation of domain names we see these days (and have seen for several years) you can't go wrong. Now or never. In ten, fifteen years the 100%+ yearly appreciation may be over.
If it won't mean financial problems on a day-to-day basis and if you have a foundation (income from parked / developed websites) you can fall back upon, don't hesitate.

VirtualT · 09-06-2007, 06:44 AM

IMO theres a difference between taking out a loan for a good name, and liquifying most of your portfolio to do so.
Ive got too much blood sweat and tears invested in mine

Michael · 09-06-2007, 09:48 AM

It is definitely good to have a diverse portfolio, so I'm not sure if I would sell off most of my names to get one. I would probably go the loan route instead.

SharonTucci · 09-06-2007, 09:53 AM

Or take on a partner

RogueWriter · 09-06-2007, 09:55 AM

Cash flow kills more businesses than one can count. Key thing is not to get to a point where one event, such as an unplanned medical bill, accident, etc., can disrupt your cash flow and knock the dominoes over.

It's okay to take sane chances, but save enough bucks back to cover 'issues'.

NameTrader.com · 09-06-2007, 12:12 PM

Quote:

Originally Posted by Smiler

You know you can actually put that money on a down payment for a nice house in San Diego right now.

FYI Smiler, I already did that. :P Have been living in the new place for a few months now and the money down helped me get a ridiculously good loan on it.

I guess the tough part about getting increasingly more expensive names is that it's being part of the mix on them vs. being on the sidelines. It's easy to say that I've seen how they do in sales and whatnot and would KNOW when something is too good to pass up, but I haven't dealt with 6+ figure names, so there's that added risk. That market is wholly different than low 5-figure and lower. Like JP said, the market is greatly limited by the level of money.

john645 · 09-06-2007, 12:13 PM

Nametrader, I know this might be weird for you since we don't know eachother, but I do have the capital to invest, and would consider going halves or even 60/40 if you have any interest. Of course I'd need to know the domain name. Pm me if you have any interest at all.

accentnepal · 09-06-2007, 08:45 PM

Do you really think the % ROI is much better for this name than for smaller price names that you can buy without disrupting so much?

Leverage and:
"you can't go wrong. Now or never. In ten, fifteen years the 100%+ yearly appreciation may be over."
thinking are signs of a bubble. I have not seen a lot of that up to now, but it is a concern.

A year from now I bet you could buy at this level with stability.

cache · 09-06-2007, 09:25 PM

this is a good question. I would think the mid-level names are better
than high-priced ones.

Quote:

Originally Posted by accentnepal

Do you really think the % ROI is much better for this name than for smaller price names that you can buy without disrupting so much?

Leverage and:
"you can't go wrong. Now or never. In ten, fifteen years the 100%+ yearly appreciation may be over."
thinking are signs of a bubble. I have not seen a lot of that up to now, but it is a concern.

A year from now I bet you could buy at this level with stability.

TheLegendaryJP · 09-06-2007, 10:36 PM

Quote:

Originally Posted by accentnepal

Do you really think the % ROI is much better for this name than for smaller price names that you can buy without disrupting so much?

Well I could buy 10 $100 names and sale each for $200 and make $1000 ( doubling my investment ) OR buy one for $30000 and sale it for $40000, choice is yours

You have to have real confidence in your evaluations. I KNOW what I can get therefore I proceed, if I did not hit my target price I am sure there is enough room that eventhough I miss it I still make out ok. I cannot stress how important it is to know buyers ho regularly spend 5-6 figs a name. Some of my clients spend million(s) a month. I can run names by them first, alot of trust is involved . Spending big 5 figures blind and not being where I am now is a scarey prospect.

I am always willing to evaluate big purchases for anyone, I am 110% trustworthy and give honest opinions.

**Spade** · 09-06-2007, 10:46 PM

Quote:

Originally Posted by SharonTucci

Or take on a partner

If only such a partner existed?.... =)

Damion · 09-07-2007, 02:53 AM

Steve, with that kind of money involved the development angle is very important, the monetization aspect and the growth of the website to attract direct advertisement deals and affiliate program options, some sort of way to maximize the monetization aspect of a domain that would cost you that kind of money.

With the right domain, the right development strategy and most importantly the right niche you can generate a instant online cash machine as traffic is already rolling in, potent traffic may i ad because of the type-ins.

Personally i wouldn't buy a domain for that kind of money to park it and wait it out to have it appreciate it in value, grow a business on it. Not saying that would be your final strategy, but just saying you know

better to develop the domain and receive residual income that has the potential to grow to something that can help you build a business around that domain alone.

verbster · 09-07-2007, 03:01 AM

Quote:

My hope, to acquire a domain name that generates at min, the same amount of rev per month, it is costing for the loan....

Interesting strategy. Let's say your loan costs $300 or so per month...what kind of domain would you buy to make that in a month, and how much do you think it would cost?

advaita · 09-07-2007, 03:27 AM

An interesting problem to have - I'm still trying to work out where to sell domain names in the first place ! I've got names listed with Afternic and Sedo and parked with a coupe of parking cos. bu so far no-one has shown any interest in any of them ! It seems to me you need a lot of patience in this domain name game.

09-05-2007, 05:27 PM	#1 (permalink)
NameTrader.com n/\m€ t\|2a\|)oЯ Join Date: Aug 2005 Location: San Diego, CA, USA Posts: 2,844 363.50 NP$ (Donate)	When is it okay to take a huge leap? I'm not talking about for instance getting a name that you can easily afford or even barely afford. I'm talking about figuring out a way to get a name you pretty much CAN'T afford because you are SO SURE of its potential for resale or development. It's safe to say we all sometimes see names way outside our limits and go "man, if I had the money, I'd get that in a heartbeat". So I guess the question is, what if you could via credit/loans/VC/quick sales of your domains/etc. get that money to get that name and while you'd have to put up with maybe some fiscal discomfort or possible regret of quick sales or whatnot for a while, you'd have this amazing name that would either net you an amazing quick profit OR be the foundation for a successful developed website you want to make. How would YOU determine whether or not to make that leap? It's one thing if it was a million dollar name and you didn't even have $100,000 total in money and liquid value in your domains because that's pretty much a pipe dream, but what if you had $100k total in money and liquid value in your domains and were eyeing a $150k - $200k domain? __________________ Domainate.com - Find out about our upcoming services! Domain Names For Sale \| Nametrader Twitter Free Samples \| Freebie Twitter

09-05-2007, 05:53 PM	#4 (permalink)
Spade NameBio.com Founder Team Leader Join Date: Sep 2006 Location: Tempe, AZ Posts: 7,410 12,579.82 NP$ (Donate)	Steve, I hear your plight, and am experiencing something on the same level. I dont have the capital or the stability to attack a $100,000 + domain name, however I am looking at targeting a low xx,xxx domain name. I took out a loan (thanks to good credit!) and extended the payments out to the max, giving me nice expendable capital, with a very small monthly payment. My hope, to acquire a domain name that generates at min, the same amount of rev per month, it is costing for the loan.... Justin __________________ Read my Blog! NameBio.com - Search The Domain Sales Index Buying LLLL.com's ending in "CA"

09-05-2007, 07:41 PM	#5 (permalink)
cache Senior Member Join Date: Sep 2005 Location: trik.com Hygo.com & California Posts: 3,940 128.02 NP$ (Donate)	Since the domain business is not as liquid, you should not take that big gamble and wait for many years. __________________ Trik LLLH Hygo IQx Kitu Hytu PPPF undu hods Toch TV vald hosy Pros LaFrance Haab wolk corg ezud SAT DiTV IJFG

09-05-2007, 08:40 PM	#6 (permalink)
Michael DNMedia.com Join Date: Jul 2007 Location: Maryland Posts: 1,808 1,499.50 NP$ (Donate)	You seem to have good instincts... I would trust them. __________________ MiniSites.com - Shift Your Domains Out of Park! PushToAuction.com - List domains you would like to push to auction at Sedo! DN Media Corporation \| Friend Me on Facebook \| Follow Me on Twitter

09-05-2007, 09:05 PM	#7 (permalink)
James Senior Member Join Date: Feb 2007 Location: Australia Posts: 3,065 1,014.96 NP$ (Donate)	I think you need to have the guts to pull off the huge leap in the first place. you shouldn't go in full speed but you should have 85%+ confidences that this is the right move and be able to live it tough. Personally i'd buy a big revenue name and hold onto it and then sell it and look into another or afew more names. You got to make sure you can cover it if something goes wrong though. you don't want to be left trying to scrap up pennies to pay the bills for the month. Its all about planning and making sure you got a back-up plan __________________ Fused Hosting Simplicity and Superiority.

09-05-2007, 05:37 PM	#2 (permalink)
stub Senior Member Join Date: Jan 2006 Posts: 3,606 11,167.70 NP$ (Donate)	Interesting thoughts. I did this on a MUCH smaller scale about a year ago. Spent 12K on a domain which is still languishing in my account with little traffic. I think I made a mistake. If you are spending that kind of money, then I'm not so sure you could make a quick flip. You'd probably need to develop the domain (more money) and hold.

09-05-2007, 10:55 PM	#9 (permalink)
TheLegendaryJP Senior Member Join Date: May 2005 Location: Canada Posts: 1,696 12.01 NP$ (Donate)	It's not always what you know but also who you know. Invest big for a big flip you say, to whom ? Only a handful of people in the WORLD would pay you 6 figs . Better know them or most of them NT. If a flip is what you are looking at.

09-05-2007, 10:57 PM	#10 (permalink)
mellowmasher mellowmasher.com Forum Moderator Join Date: Jul 2005 Location: UK Posts: 12,359 865.03 NP$ (Donate)	Ok first off Steve Ive seen your posts around and your comments and... nobody knows everthing but you appear to have a solid knowledge and good gut feeling about the domain world.. I have got a feeling that if you are not already a profitable full time domainer, ... you will be __________________ Hot New NP Live Auctions! I RECOMMEND HIVE DESIGNS FOR HIGH QUALITY WEB DESIGNS Mellowmasher.com

09-06-2007, 03:16 AM	#12 (permalink)
Lenz NamePros Member Join Date: May 2007 Posts: 49 144.00 NP$ (Donate)	My 2c: With the rapid appreciation of domain names we see these days (and have seen for several years) you can't go wrong. Now or never. In ten, fifteen years the 100%+ yearly appreciation may be over. If it won't mean financial problems on a day-to-day basis and if you have a foundation (income from parked / developed websites) you can fall back upon, don't hesitate.

09-06-2007, 06:44 AM	#13 (permalink)
VirtualT Gentoo Powered Join Date: Aug 2005 Location: Perth Posts: 932 254.50 NP$ (Donate)	IMO theres a difference between taking out a loan for a good name, and liquifying most of your portfolio to do so. Ive got too much blood sweat and tears invested in mine

09-06-2007, 09:48 AM	#14 (permalink)
Michael DNMedia.com Join Date: Jul 2007 Location: Maryland Posts: 1,808 1,499.50 NP$ (Donate)	It is definitely good to have a diverse portfolio, so I'm not sure if I would sell off most of my names to get one. I would probably go the loan route instead. __________________ MiniSites.com - Shift Your Domains Out of Park! PushToAuction.com - List domains you would like to push to auction at Sedo! DN Media Corporation \| Friend Me on Facebook \| Follow Me on Twitter

09-06-2007, 09:53 AM	#15 (permalink)
SharonTucci Senior Member Join Date: Apr 2005 Location: Canada Posts: 1,014 3,869.00 NP$ (Donate)	Or take on a partner __________________ Domainate.com - coming soon

09-06-2007, 09:55 AM	#16 (permalink)
RogueWriter The Buddha Of Bubbas Join Date: Jan 2005 Location: Smalltown USA Posts: 4,496 49.90 NP$ (Donate)	Cash flow kills more businesses than one can count. Key thing is not to get to a point where one event, such as an unplanned medical bill, accident, etc., can disrupt your cash flow and knock the dominoes over. It's okay to take sane chances, but save enough bucks back to cover 'issues'. __________________ For Sale Only $25: TacticsForum.com

09-06-2007, 12:13 PM	#18 (permalink)
john645 NamePros Regular Join Date: Aug 2007 Posts: 562 0.00 NP$ (Donate)	Nametrader, I know this might be weird for you since we don't know eachother, but I do have the capital to invest, and would consider going halves or even 60/40 if you have any interest. Of course I'd need to know the domain name. Pm me if you have any interest at all.

09-06-2007, 08:45 PM	#19 (permalink)
accentnepal Senior Member Join Date: Apr 2006 Posts: 2,113 365.00 NP$ (Donate)	Do you really think the % ROI is much better for this name than for smaller price names that you can buy without disrupting so much? Leverage and: "you can't go wrong. Now or never. In ten, fifteen years the 100%+ yearly appreciation may be over." thinking are signs of a bubble. I have not seen a lot of that up to now, but it is a concern. A year from now I bet you could buy at this level with stability. __________________ Domains for sale For List Of Country Code Domains Jewelry of Tibet and Nepal Jewellery Store at Ebay Tibetan Symbols Om Pyramids Ancient Egyptian Secrets Ancient Mystery Eden Shakti

09-07-2007, 02:53 AM	#23 (permalink)
Damion Senior Member Join Date: Feb 2006 Posts: 2,679 315.00 NP$ (Donate)	Steve, with that kind of money involved the development angle is very important, the monetization aspect and the growth of the website to attract direct advertisement deals and affiliate program options, some sort of way to maximize the monetization aspect of a domain that would cost you that kind of money. With the right domain, the right development strategy and most importantly the right niche you can generate a instant online cash machine as traffic is already rolling in, potent traffic may i ad because of the type-ins. Personally i wouldn't buy a domain for that kind of money to park it and wait it out to have it appreciate it in value, grow a business on it. Not saying that would be your final strategy, but just saying you know better to develop the domain and receive residual income that has the potential to grow to something that can help you build a business around that domain alone.

09-07-2007, 03:27 AM	#25 (permalink)
advaita Senior Member Join Date: Jan 2007 Posts: 1,471 203.00 NP$ (Donate)	An interesting problem to have - I'm still trying to work out where to sell domain names in the first place ! I've got names listed with Afternic and Sedo and parked with a coupe of parking cos. bu so far no-one has shown any interest in any of them ! It seems to me you need a lot of patience in this domain name game. __________________ Make Money On the Internet * Warren Buffett Stocks and Shares Ebook Reader * Womens Handbags *** Best Gaming Laptops * Radley Bags * Digital Cameras

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