A couple of weeks ago, I started a thread on NamePros asking members to submit some of their own mistakes, or listing very common mistakes that some investors make early on in their domaining careers. I'm posting this article not to poke fun at individuals for making mistakes but rather to emphasize the fact that we all make mistakes every now and then. It's how we learn from those mistakes that can determine our success.
1. Registering Trademarks
2. Selling in a Hurry
3. The Lottery Mentality
4. Not Setting Realistic Prices
5. Buying Typo Domain Names
Another one to look out for is a capital
6. Impulse Purchases
7. Forgetting Auction Lock
8. Failing to Renew Domains
9. Paying for Domain Name Appraisals
10. Forming Emotional Attachments to Domain Names
11. Bidding Wars
12. Getting Scammed
This is my own personal confession. Before I had found NamePros, before I'd found any online domain name resources, I owned some terrible domain names that I hoped would sell for a crazy amount. I fell for the domain appraisal scam.
As I mentioned earlier, these mistakes aren't here for you to ridicule. It's an honest, open account from our fantastic community of NamePros members, which I hope will help some of you avoid making some of these common mistakes.
If you have any of your own stories, feel free to add them in the comments section below.
1. Registering Trademarks
Registering trademarked domain names is something that many new investors do, but it's something that definitely should be avoided. Trademark holders can defend their rights by filing a UDRP against any domain name they feel is infringing upon their mark. In the United States, legal action can be taken against cybersquatters according to the Anticybersquatting Consumer Protection Act, where plaintiffs may elect statutory damages ranging from $1,000 to $100,000 per domain name.Registering trademarked domain names in the hope of selling them to the trademark holder - Submitted by @David Walker
2. Selling in a Hurry
@sam roy shared his own experience of selling too quickly: "I sold a domain like QSSG.com last year for a mere low $XX. Now I am learning to be more patient."Being in a hurry to sell your domain names. Submitted by @sam roy and @pdevananth
3. The Lottery Mentality
This is something that I've done myself and have also heard from other domain investors. Registering hundreds of domain names in the hope of selling one domain to cover the cost of every other name whilst leaving you with a profit is a strategy that has very rarely worked.Buying hundreds of domain names in the hope that one sale will pay for the rest and leaving you with a profit. Submitted by @Kate
4. Not Setting Realistic Prices
Again, something that I've been guilty of along with many others. Owning a mediocre domain name and listing it for sale at a ridiculously high price will decrease the chances of selling it at a fair price.Not setting realistic prices on domain names for sale. Submitted by @hookbox
5. Buying Typo Domain Names
@Ms Domainer shared her own experience of this: "Years ago, buying vvebbooks.com at Pool, when I thought I was buying webbooks.com. I keep it as a reminder."Buying typo domains or domain names with spelling mistakes. Submitted by @Ms Domainer, @pdevananth, @kollam003
Another one to look out for is a capital
i appearing like a 1 or lowercase L (Iook.com vs. look.com - the former is iook.com).6. Impulse Purchases
Impulsiveness and domain names should never mix. Domain name acquisitions require research, knowledge, and time to assess the domain. Impulsiveness typically leads to losing money.Impulse purchases/lack of patience. Submitted by @Fliporium
7. Forgetting Auction Lock
You may have read my article Trust Your Instincts, Part Two about Omar's latest sale. What you may not know is that his five-day flip had to be put on hold due to forgetting about eNom's Auction Lock for NameJet PreRelease domain names.Forgetting about NameJet's "Auction Lock" when trying to sell a domain name. Submitted by @Omar Negron
8. Failing to Renew Domains
Ouch! This member was the owner of community.com in the late 90s and let the domain name expire instead of paying to renew it. Today, the name is owned by SalesForce and must surely be valued in the six-figure range.Too stingy to spend some dollars renewing Community.com I owned years ago. Submitted by @Gallesham
9. Paying for Domain Name Appraisals
You should never be paying for a domain name appraisal. They're largely worthless and are never required by a serious buyer. If you want feedback on your names, domain appraisals are free on NamePros.Back in the early days of my domaining career, I thought it was important to pay GoDaddy for an appraisal. $250 later I figured out I was an idiot! Submitted by @Debt.tv
10. Forming Emotional Attachments to Domain Names
Getting emotionally attached to a domain name means that you won't let it expire or sell it for a reasonable price. No matter how poor the name is - whether it receives traffic or not, there are occasions when we get too attached to a domain name. This usually results in renewing said domain name for years with no prospects of selling or turning down fair offers for it.Getting emotionally attached to a domain name. Submitted by @julianperry
11. Bidding Wars
We've all been there. We set a budget for the domain name - a firm limit on how much we will spend to acquire the domain. Then, another bidder enters the fray and that budget is quickly forgotten as we engage in a bidding war! This can lead to paying over the odds for a domain name, reducing your potential ROI (Return on Investment) by quite a way.Getting into bidding wars. Submitted by @bulga
12. Getting Scammed
This is my own personal confession. Before I had found NamePros, before I'd found any online domain name resources, I owned some terrible domain names that I hoped would sell for a crazy amount. I fell for the domain appraisal scam.
As I mentioned earlier, these mistakes aren't here for you to ridicule. It's an honest, open account from our fantastic community of NamePros members, which I hope will help some of you avoid making some of these common mistakes.
If you have any of your own stories, feel free to add them in the comments section below.
