$30,000 to spend...what to do?

[polyromcom]

Someone offered to give me $30k to invest domains (because of my decent track record at a much smaller scale). He asked what my "strategy" would be, what my "business plan" was and I said that I didn't really have one... Everything was transaction-dependent, meaning that I looked for good domains that were either undervalued or unregistered, and picked them up and tried to turn them back over.

If you had $30k, do you think you could spend it effectively in domains? If so, what would a tangible strategy be? Would you hope to profit on parking? Would you buy mid-priced domains for hold value? Would you buy names to develop?

So far I've only been involved with about $2k of my own money and done very well, but how to articulate a real strategy for 30k....?

Any ideas?

Thanks!
P

 

[labrocca]

To be blunt you should return the $30k and inform him it's beyond your expertise. You have the potential imho to lose it all. Small scale success does not equate to large scale most times. Logistically things become very different. It's super easy to handpick and find a domain under $50 and sell it for $100 but to do that 1000 times in a year is incredibly difficult. Unless you have experience doing $xx,xxx sales you really run the risk of failure.

Sorry to discourage but I don't feel I would do you justice by giving you lip-service.

If indeed you're truly intending to spend this money then my advice will be to take a long time doing so.

 

[TechGuy1]

wow thats alot of money to invest in domains

 

[labrocca]

The domain market really isn't what it once was. If you really take a hard look at sales it's from people that have held domains for years now selling to end-users. If you think you're going to get a deal buying in todays market under these circumstances then good luck.

Really I feel investing in real estate is the best deal in todays market. Homes are very depressed right now but aren't dropping further. The amount of foreclosures availabable is outstanding and more and more buyers are picking them up. You have the potential imho to buy land with $30k today that will value 3x in 5-8 years.

Even the stock market is probably a better buy right now.

IMHO the domain market is one of the worst markets to be a buyer right now. 100% of good domains are taken and prices for anything decent is very high. And now renewals fees are increasing yearly. To hold a 1000 domain portfolio costs 25% more to maintain than it did 4 years ago. That's significant.

Take a look around. Things are bleak for domainers who are new.

 

[Larry Fling]

Buy a BMW, Park it brand new for ten years then sell it..

 

[mwzd]

Larry, swap 'painting' with 'bmw' and you just begin to cover the domain market.

Some assets devalue over time, some appreciate.

Even in domains, only 7% appreciate, but the ones that do are excellent investment vehicles.

 

[XDuncan]

I agree with Sam about investing in .com.

 

[mrfrisky]

I second this.

I third that.
But he is always free to contact me so i can sell my valuable domains
J.k.

 

[werty]

My biggest .US flip was a $30 purchase flipped for $500. I have purchased about 5 .us domains in total, and that was the first and only I was able to sell /5.

 

[Domainate.com]

Someone offered to give me $30k to invest domains (because of my decent track record at a much smaller scale). He asked what my "strategy" would be, what my "business plan" was and I said that I didn't really have one... Everything was transaction-dependent, meaning that I looked for good domains that were either undervalued or unregistered, and picked them up and tried to turn them back over.

If you had $30k, do you think you could spend it effectively in domains? If so, what would a tangible strategy be? Would you hope to profit on parking? Would you buy mid-priced domains for hold value? Would you buy names to develop?

So far I've only been involved with about $2k of my own money and done very well, but how to articulate a real strategy for 30k....?

Any ideas?

Thanks!
P

I can tell you what I wouldn't do if someone offered me $30k to invest - post on a public message forum asking others how to invest that much. :/

If what you've done so far has worked, and they're giving you money on the basis that what you've done so far has worked, why would you change what you're doing? It would be one thing if it was a leap say from $1k to $1 million, but your leap isn't that big.

 

[Sameh]

No matter what you will decide, Don't include Parking revenue and Reselling to domainers in your strategy/plan. I agree with others about If what you are doing is working for you stick to it and try to make it even better.

Last but not least, I would rather invest $5k of my own than $50k of others.


Best of luck,
Sameh

 

[JTFranklin]

Invest it in a online fuse that collides with the offline world. I think you would bank.

 

[dlotus205]

Invest in Joyfund, or some other Feederfund program. Or maybe FX-Experts.

Good luck to you!

 

[pammap26]

That also happened to me once when I became aghast when an investor approached me. What I did was to save money and waited for the right investment to pop up. Lunckily, it did and I felt that that is the one. Also, one basis of choosing it is that I am really familiar to that one and I feel comfortable doing it..