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| Domain Name Discussion The place for general domain name related discussions. |
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| | #1 (permalink) |
| n/\m€ t|2a|)oЯ | 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? |
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| | #2 (permalink) |
| Senior Member | 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. |
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| | #3 (permalink) | |
| n/\m€ t|2a|)oЯ | Quote:
__________________ Domainate.com - Find out about our upcoming services! Domain Names For Sale | Nametrader Twitter Free Samples | Freebie Twitter Last edited by NameTrader.com; 09-06-2007 at 12:13 PM. | |
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| | #4 (permalink) |
| NameBio.com Founder Team Leader | 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
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| | #6 (permalink) |
| DNMedia.com | You seem to have good instincts... I would trust them.
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| | #7 (permalink) |
| Senior Member | 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
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| | #8 (permalink) | |
| NamePros Regular | Quote:
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| | #10 (permalink) |
| mellowmasher.com Forum Moderator | 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
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| | #11 (permalink) | |
| Senior Member | Quote:
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| | #12 (permalink) |
| NamePros Member | 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. |
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| | #14 (permalink) |
| DNMedia.com | 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.
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| | #15 (permalink) |
| Senior Member | Or take on a partner
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| | #16 (permalink) |
| The Buddha Of Bubbas | 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'.
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| | #17 (permalink) | |
| n/\m€ t|2a|)oЯ | Quote:
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. | |
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| | #18 (permalink) |
| NamePros Regular | 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. |
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| | #19 (permalink) |
| Senior Member | 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. |
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| | #20 (permalink) | |
| Senior Member | this is a good question. I would think the mid-level names are better than high-priced ones. Quote:
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| | #21 (permalink) | |
| Senior Member | Quote:
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. Last edited by TheLegendaryJP; 09-06-2007 at 10:43 PM. | |
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| | #22 (permalink) | |
| NameBio.com Founder Team Leader | Quote:
__________________ Read my Blog! NameBio.com - Search The Domain Sales Index Buying LLLL.com's ending in "CA" | |
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| | #23 (permalink) |
| Senior Member | 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. |
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| | #24 (permalink) | |
| Save the Bears | Quote:
__________________ A good domain name is worth more than money. I've got domains up the Wazoo...wanna buy some? | |
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| | #25 (permalink) |
| Senior Member | 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.
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