How would you invest $5,000?

teelamph · 10-26-2008, 04:51 PM

I have an investor who wants to put $5k (or more) into domains. This person is an international real estate developer and investor who I introduced to domaining and is interested in doing some business with me. I have plenty of ideas, among these is getting ahold of some high quality mid $xxx price range domains. I'd like some input from some of you experts who maybe have done business of this nature before. So what would you do?
Thanks!

labrocca · 10-26-2008, 05:07 PM

I wouldn't. Right now it's an odd market. I would concentrate on sites earning income.

-REECE- · 10-26-2008, 05:08 PM

Good advice imho. I'm spending my money developing some of the domains I already have.

Originally Posted by labrocca

I wouldn't. Right now it's an odd market. I would concentrate on sites earning income.

dbtbandit67 · 10-26-2008, 05:12 PM

it's a bad market to sell, but it's a terrific market to buy. you want to buy domains when they are cheaper. as a re-seller, it's a terrific time to pickup domains. i prefer quality over quantity, and i also prefer development over re-selling.

i would ask your investor for a list of keywords that he would be interested in. then i would plug those keywords into domains that were a 100% match with popular extensions, and make offers.

just because another domainer is making a profit off you, doesn't mean it's a bad purchase for the buyer. for one, development could offset those costs. and two, they could still be selling it below market value

i hope that helps =)

teelamph · 10-26-2008, 05:16 PM

Originally Posted by labrocca

I wouldn't. Right now it's an odd market. I would concentrate on sites earning income.

So are you saying possibly purchasing existing websites? I was thinking given the current market, I could get some good steals on category killer domains and such..

labrocca · 10-26-2008, 05:22 PM

Quote:

I could get some good steals on category killer domains and such..

Premium domains aren't that cheap. For $5k you might score 1-5 names at best imho. Those names won't earn unless you resell. Sites earn and as they grow gain in value. However development isn't for everyone but then again neither is domaining.
????: NamePros.com http://www.namepros.com/domain-name-discussion/527696-how-would-you-invest-5-000-a.html

I don't think many $xxx deals exist actually. Either you pay $x,xxx for solid domains or you find bargain basements for $xx. You can also hand-reg some (stick with dot coms). Maybe drop market you might might get a couple deals in your range.

teelamph · 10-26-2008, 05:23 PM

Originally Posted by dbtbandit67

it's a bad market to sell, but it's a terrific market to buy. you want to buy domains when they are cheaper. as a re-seller, it's a terrific time to pickup domains. i prefer quality over quantity, and i also prefer development over re-selling.

i would ask your investor for a list of keywords that he would be interested in. then i would plug those keywords into domains that were a 100% match with popular extensions, and make offers.

just because another domainer is making a profit off you, doesn't mean it's a bad purchase for the buyer. for one, development could offset those costs. and two, they could still be selling it below market value

i hope that helps =)

Great info. The cool thing is, my investor is in no way internet savvy, and is giving me lots of freedom on the what type of domain (keywords etc.) to get in to. As far as developing, it's something I'd love to get into not only to create revenue but just to increase the value and resell. I just am not familiar with developing and never really have been. What I've done the past 7 months is lean more towards buying low, marketing correctly, and reselling. Thank you for your input! Reps added

Dean · 10-26-2008, 05:26 PM

Well you dont want to put all your eggs in one basket but a few quad premium LLLL.com and then 1 or 2 decent premium generics with the rest of the money would be how I would spend it.

Jasonn · 10-26-2008, 05:34 PM

Very carefully. I hope he doesn't have high expectations of what can be earned with 5 grand. You might be able to double your investment if you invest wisely but you can spend six figures and still not have a strong portfolio.

labrocca · 10-26-2008, 05:40 PM

Be careful with LLLL.com's as they are not really a proven market. Don't be fooled by the word "premium" in their description.

And yeah...$5 isn't that much to invest really. imho more money to be made from the dip in the stock market

bmugford · 10-26-2008, 05:42 PM

Yes, I would invest money in this market as I have been doing. But that being said you have to buy at discounts to create a buffer if the market keeps falling.

Bodhi · 10-26-2008, 05:48 PM

I would think with $5,000 you could pick up some good deals on the afermarket right now, but the same money would go further in the months ahead in my opinion.

There is not going to be some sudden economic rebound anyime soon, governments are still trying to stick bandaids on the problem. Even with all the bandaids, it looks pretty certain there will be a deep recession. $5,000 is not a lot, but it might go a lot further in the domain market a few months from now.

teelamph · 10-26-2008, 06:17 PM

This is why I say $5k or more. He's seen examples of what I've done, what others have done etc. This $5k is to simply test the waters. I know of many great ways and resources to pick up some good $xxx names that may be worth much more. I have pretty good taste in domains, and simply will not purchase if I don't think I'm getting them for a steal, which I've done in the passed. Thanks everyone to all the great input so far, it's very much appreciated!

Bodhi · 10-26-2008, 06:21 PM

Originally Posted by teelamph

I know of many great ways and resources to pick up some good $xxx names that may be worth much more.

Then you are Golden, just keep doing what you are doing.

-REECE- · 10-26-2008, 06:22 PM

That's a great strategy to employ at present. Wish you all the best!

Originally Posted by teelamph

I have pretty good taste in domains, and simply will not purchase if I don't think I'm getting them for a steal

bmugford · 10-26-2008, 06:25 PM

This is a strategy I have always employed, unless I had a specific plan for a domain. If you buy a domain at a bargain price, then you are more insulated from market conditions.

????: NamePros.com http://www.namepros.com/showthread.php?t=527696
Brad

Originally Posted by www.LLLL.com

That's a great strategy to employ at present. Wish you all the best!

labrocca · 10-26-2008, 06:29 PM

If $5k is your test money that's reasonable then. Gonna assume that's about 10% of your budget.

teelamph · 10-26-2008, 06:34 PM

Originally Posted by labrocca

If $5k is your test money that's reasonable then. Gonna assume that's about 10% of your budget.

At this point, we have not set a budget. The next investment will reflect what was done with the initial investment. Fortunately, Im dealing with a personal acquaintance who is very open.

Michael · 10-26-2008, 06:53 PM

I would follow premium auctions like GreatDomains, Traffic, etc. and go for a good keyword domain. Those venues have seen some absolute steals recently. I already sold off my share, but a guy on the forums teamed up with me to buy Advising.com for $3,434 in Moniker's extended auction at the last Traffic conference; an obvious steal. This is the time to be buying generics without a doubt.

teelamph · 10-26-2008, 06:57 PM

Originally Posted by Michael

This is the time to be buying generics without a doubt.

My thoughts exactly. Thanks for the info, and congrats on such an awesome domain!

owntype · 10-26-2008, 07:12 PM

With $5k, you can pick up 1 - 2 nice .com domain if you are lucky. Unluckily, I haven't found much "bargains" these days, hardly receive replies.

labrocca · 10-26-2008, 07:35 PM

Quote:

Fortunately, Im dealing with a personal acquaintance who is very open.

Have him read this thread. I can give him the OK to spend up to $100k.

????: NamePros.com http://www.namepros.com/showthread.php?t=527696

Quote:

Unluckily, I haven't found much "bargains" these days, hardly receive replies.

Oh but CNO's have dropped so much in price. /sarcasm

dbtbandit67 · 10-26-2008, 09:17 PM

i think that business decisions become more complicated when investors/shareholders are involved. i have a feeling that you're still relatively new in buying/selling/marketing/developing domains, and it takes a lot more time to become profitable at it than one would expect.
????: NamePros.com http://www.namepros.com/showthread.php?t=527696

a lot of people point out that 5K as a starting bankroll as a pitfall. that may not be enough to constitute an entire bankroll, but a bigger challenge than that is time. you're shareholder is going to want to see a return on his investment, and how you balance your own personal learning curve and keeping this shareholder satisfied may be your biggest challenge.

if you are relatively new to buying/selling/marketing/developing domains, i don't believe that engaging in business being backed by shareholders is the right approach to take

1901gt · 10-26-2008, 09:44 PM

**Archangel** · 10-26-2008, 10:11 PM

Personally, I'd invest in triple/quad premium LLLL.coms. They'd pay off, surely

10-26-2008, 04:51 PM	THREAD STARTER #1 (permalink)
teelamph NamePros Regular Join Date: May 2008 Location: SLO, CA Posts: 248	How would you invest $5,000? I have an investor who wants to put $5k (or more) into domains. This person is an international real estate developer and investor who I introduced to domaining and is interested in doing some business with me. I have plenty of ideas, among these is getting ahold of some high quality mid $xxx price range domains. I'd like some input from some of you experts who maybe have done business of this nature before. So what would you do? Thanks! __________________ BadReport(dot)Com- $25 OBO today only! PM me =).

10-26-2008, 05:07 PM	#2 (permalink)
labrocca NamePros Expert Join Date: Aug 2004 Location: Las Vegas Posts: 6,277 Follow @supportforums	I wouldn't. Right now it's an odd market. I would concentrate on sites earning income. __________________ :$: Support Forum <-- My latest endeavor.:loveyou: Debate Forums Free Online Sudoku My vBum Blog

10-26-2008, 05:26 PM	#8 (permalink)
Dean Senior Member Join Date: Jan 2007 Location: Melbourne Posts: 1,714	Well you dont want to put all your eggs in one basket but a few quad premium LLLL.com and then 1 or 2 decent premium generics with the rest of the money would be how I would spend it. __________________ Free Image Hosting Image uploading Application Random Generator

10-26-2008, 05:40 PM	#10 (permalink)
labrocca NamePros Expert Join Date: Aug 2004 Location: Las Vegas Posts: 6,277 Follow @supportforums	Be careful with LLLL.com's as they are not really a proven market. Don't be fooled by the word "premium" in their description. And yeah...$5 isn't that much to invest really. imho more money to be made from the dip in the stock market __________________ :$: Support Forum <-- My latest endeavor.:loveyou: Debate Forums Free Online Sudoku My vBum Blog

10-26-2008, 05:42 PM	#11 (permalink)
bmugford www.DataCube.com Join Date: Apr 2007 Location: USA Posts: 5,819	Yes, I would invest money in this market as I have been doing. But that being said you have to buy at discounts to create a buffer if the market keeps falling. __________________ DataCube.com - Buy and Sell Premium Domains Add Me on Facebook

10-26-2008, 05:12 PM	#4 (permalink)
dbtbandit67 Team USA Join Date: Jul 2008 Location: Los Angeles Posts: 751	it's a bad market to sell, but it's a terrific market to buy. you want to buy domains when they are cheaper. as a re-seller, it's a terrific time to pickup domains. i prefer quality over quantity, and i also prefer development over re-selling. i would ask your investor for a list of keywords that he would be interested in. then i would plug those keywords into domains that were a 100% match with popular extensions, and make offers. just because another domainer is making a profit off you, doesn't mean it's a bad purchase for the buyer. for one, development could offset those costs. and two, they could still be selling it below market value i hope that helps =)

10-26-2008, 05:34 PM	#9 (permalink)
Jasonn NamePros Regular Join Date: May 2007 Posts: 321	Very carefully. I hope he doesn't have high expectations of what can be earned with 5 grand. You might be able to double your investment if you invest wisely but you can spend six figures and still not have a strong portfolio.

10-26-2008, 05:48 PM	#12 (permalink)
Bodhi Senior Member Join Date: Apr 2006 Posts: 3,129	I would think with $5,000 you could pick up some good deals on the afermarket right now, but the same money would go further in the months ahead in my opinion. There is not going to be some sudden economic rebound anyime soon, governments are still trying to stick bandaids on the problem. Even with all the bandaids, it looks pretty certain there will be a deep recession. $5,000 is not a lot, but it might go a lot further in the domain market a few months from now.

10-26-2008, 06:17 PM	THREAD STARTER #13 (permalink)
teelamph NamePros Regular Join Date: May 2008 Location: SLO, CA Posts: 248	This is why I say $5k or more. He's seen examples of what I've done, what others have done etc. This $5k is to simply test the waters. I know of many great ways and resources to pick up some good $xxx names that may be worth much more. I have pretty good taste in domains, and simply will not purchase if I don't think I'm getting them for a steal, which I've done in the passed. Thanks everyone to all the great input so far, it's very much appreciated! __________________ BadReport(dot)Com- $25 OBO today only! PM me =).

10-26-2008, 06:29 PM	#17 (permalink)
labrocca NamePros Expert Join Date: Aug 2004 Location: Las Vegas Posts: 6,277 Follow @supportforums	If $5k is your test money that's reasonable then. Gonna assume that's about 10% of your budget. __________________ :$: Support Forum <-- My latest endeavor.:loveyou: Debate Forums Free Online Sudoku My vBum Blog

10-26-2008, 06:53 PM	#19 (permalink)
Michael DNMedia.com Join Date: Jul 2007 Location: Maryland Posts: 1,866	I would follow premium auctions like GreatDomains, Traffic, etc. and go for a good keyword domain. Those venues have seen some absolute steals recently. I already sold off my share, but a guy on the forums teamed up with me to buy Advising.com for $3,434 in Moniker's extended auction at the last Traffic conference; an obvious steal. This is the time to be buying generics without a doubt. __________________ MiniSites.com - Shift Your Domains Out of Park! DN Media Corporation \| Friend Me on Facebook \| Follow Me on Twitter

10-26-2008, 07:12 PM	#21 (permalink)
owntype Senior Member Join Date: Jul 2006 Posts: 3,137	With $5k, you can pick up 1 - 2 nice .com domain if you are lucky. Unluckily, I haven't found much "bargains" these days, hardly receive replies. __________________ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z . C O M

10-26-2008, 09:17 PM	#23 (permalink)
dbtbandit67 Team USA Join Date: Jul 2008 Location: Los Angeles Posts: 751	i think that business decisions become more complicated when investors/shareholders are involved. i have a feeling that you're still relatively new in buying/selling/marketing/developing domains, and it takes a lot more time to become profitable at it than one would expect. ????: NamePros.com http://www.namepros.com/showthread.php?t=527696 a lot of people point out that 5K as a starting bankroll as a pitfall. that may not be enough to constitute an entire bankroll, but a bigger challenge than that is time. you're shareholder is going to want to see a return on his investment, and how you balance your own personal learning curve and keeping this shareholder satisfied may be your biggest challenge. if you are relatively new to buying/selling/marketing/developing domains, i don't believe that engaging in business being backed by shareholders is the right approach to take

10-26-2008, 09:44 PM	#24 (permalink)
1901gt Senior Member Join Date: Mar 2005 Location: Singapore Posts: 1,836 Follow @mdnoorhadi	Last edited by 1901gt; 10-26-2008 at 11:49 PM.

10-26-2008, 10:11 PM	#25 (permalink)
Archangel www.randypendleton.com Join Date: Jan 2004 Location: Southern Ohio, USA Posts: 7,045	Personally, I'd invest in triple/quad premium LLLL.coms. They'd pay off, surely

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