When is it okay to take a huge leap?

***Domainate.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?
????: NamePros.com http://www.namepros.com/domain-name-discussion/370674-when-is-okay-take-huge-leap.html

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.

***Domainate.com*** · 09-05-2007, 05:51 PM

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.

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

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.
????: NamePros.com http://www.namepros.com/showthread.php?t=370674
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.

**Michelle** · 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

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'.

***Domainate.com*** · 09-06-2007, 12:12 PM

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.

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.
????: NamePros.com http://www.namepros.com/showthread.php?t=370674

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.

accent · 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.

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.

????: NamePros.com http://www.namepros.com/showthread.php?t=370674
A year from now I bet you could buy at this level with stability.

Spade · 09-06-2007, 10:46 PM

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.

gazzip · 09-07-2007, 04:20 AM

Originally Posted by NameTrader.com

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.

Steve, you are obviously doing very well the way you are going, if its not broke don't fix it IMO, why keep all your eggs in one basket ?
????: NamePros.com http://www.namepros.com/showthread.php?t=370674

The majority of guys that are spending $100,000+ on domains are very likely not even coming close to spending their yearly interest, they can comfortably afford to wait many years to sell if thats what it takes. A totally different league of investors !

Yes, take big gambles but don't gamble with your livelyhood, money is only money - money does not = happiness.

JMO - Good luck in whatever you decide to do.

.

sashas · 09-07-2007, 09:38 AM

Steve,
I was looking at the .in sales at DnSalePrice.com, and Poker.in showed up at around $2500 in 2005.
I think most people here know that you eventually sold it for $60,000. To me, that is a huge profit.
What other business can give you such good results?
Personally, i would be willing to smash the piggy bank and buy a good name that will guarantee me a good return. Even though I've never bought a domain above low xxx figures (I'm a newbie. And a college student..), if someone had offered me Poker.in for $2000 two years back, I would've taken out loans, asked for money from friends, survived on Ramen for 2 years because my foresight would've told me that it'll be a good ROI
????: NamePros.com http://www.namepros.com/showthread.php?t=370674

Once I have some more capital, I do plan to take out a loan and purchase a LLL.com

Btw, I think most of you've read this before, but this email serves as only a reminder that it is possible to make huge ROI within months:
http://www.conceptualist.com/?p=313

09-05-2007, 05:27 PM	THREAD STARTER #1 (permalink)
*Domainate.com* Domain Seller & Expert Join Date: Aug 2005 Location: San Diego, CA, USA Posts: 3,767 Follow @nametrader	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? ????: NamePros.com http://www.namepros.com/domain-name-discussion/370674-when-is-okay-take-huge-leap.html 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? __________________ NEW: May $99 domain sale with over 800 discounted domains! Want to learn how to earn a living with domains without the years of trial and error? ------> Attend our Domain Boot Camp live 2-day workshop! <------ Join our Doma.in Newsletter for discounted domains and training! \| Twitter \| Facebook

09-05-2007, 05:53 PM	#4 (permalink)
Spade NamePros Expert Join Date: Sep 2006 Location: Carlsbad, CA Posts: 7,848	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: Goblin Wars Zone & California Posts: 4,471	Since the domain business is not as liquid, you should not take that big gamble and wait for many years. __________________ LaFrance Hods Raids Trik OXSI GoblinWars IQx yPortal Idel enlo Kitu Hytu Albums eMontage Cereal Tarf MDTalks Toch TV vald hosy iBoar Glem wolk corg ypen DiTV

09-05-2007, 08:40 PM	#6 (permalink)
Michael DNMedia.com Join Date: Jul 2007 Location: Maryland Posts: 1,842	You seem to have good instincts... I would trust them. __________________ MiniSites.com - Shift Your Domains Out of Park! 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: 3,043 Follow @VegJames	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 __________________ Ex-NamePros Moderator.

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09-05-2007, 05:37 PM	#2 (permalink)
stub NamePros Expert Join Date: Jan 2006 Posts: 7,307	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, 10:57 PM	#9 (permalink)
Michelle Be Happy... Don't Worry Join Date: Jul 2005 Location: UK Posts: 16,245	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

09-06-2007, 03:16 AM	#11 (permalink)
Lenz NamePros Member Join Date: May 2007 Posts: 48	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	#12 (permalink)
VirtualT Senior Member Join Date: Aug 2005 Location: afloat.com Posts: 1,128	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	#13 (permalink)
Michael DNMedia.com Join Date: Jul 2007 Location: Maryland Posts: 1,842	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! DN Media Corporation \| Friend Me on Facebook \| Follow Me on Twitter

09-06-2007, 09:53 AM	#14 (permalink)
SharonTucci Senior Member Join Date: Apr 2005 Location: Canada Posts: 990	Or take on a partner __________________ Domainate.com - coming soon :)

09-06-2007, 09:55 AM	#15 (permalink)
RogueWriter NamePros Expert Join Date: Jan 2005 Location: Smalltown USA Posts: 5,032	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'. __________________ "I'm so mean I make MEDICINE sick." -Muhammad Ali

09-06-2007, 12:13 PM	#17 (permalink)
john645 NamePros Regular Join Date: Aug 2007 Posts: 580	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	#18 (permalink)
accent Senior Member Join Date: Apr 2006 Posts: 2,299	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 TibetanJewelry.mobi Tibetan Symbols Om Pyramids Ancient Egyptian Secrets Ancient Mystery Eden Shakti

09-07-2007, 02:53 AM	#21 (permalink)
Damion Senior Member Join Date: Feb 2006 Posts: 2,714	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	#23 (permalink)
advaita Senior Member Join Date: Jan 2007 Posts: 1,524	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. __________________ Best Selling Ebooks * Stocks and Shares * Radley Bags * Chronographs * Cameras Under $300 * How to Trade Stocks Online * Netbooksfor Kids * Geiger Counter Kits * Machetes

09-07-2007, 09:38 AM	#25 (permalink)
sashas Senior Member Join Date: Jul 2007 Location: Jaipur, India Posts: 3,101	Steve, I was looking at the .in sales at DnSalePrice.com, and Poker.in showed up at around $2500 in 2005. I think most people here know that you eventually sold it for $60,000. To me, that is a huge profit. What other business can give you such good results? Personally, i would be willing to smash the piggy bank and buy a good name that will guarantee me a good return. Even though I've never bought a domain above low xxx figures (I'm a newbie. And a college student..), if someone had offered me Poker.in for $2000 two years back, I would've taken out loans, asked for money from friends, survived on Ramen for 2 years because my foresight would've told me that it'll be a good ROI ????: NamePros.com http://www.namepros.com/showthread.php?t=370674 Once I have some more capital, I do plan to take out a loan and purchase a LLL.com Btw, I think most of you've read this before, but this email serves as only a reminder that it is possible to make huge ROI within months: http://www.conceptualist.com/?p=313

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