Amateur versus Pro Domainer?

[tykoblue]

I've been lurking in this forum for about 3-4 months, to try and learn about the domain business.

One thing I've noticed is that the folks who come here have a wide range of skills, as far as ability to profit from selling domain names.

On one end, I see folks who have struggled for a long time with only a few $XX to $XXX figure sales to show for it. These folks I'll call "amateurs" (and by this I don't mean any offense, I certainly consider myself in this category).

Then there are those who consistently seem to sell $X,XXX to $XX,XXX domains (or higher), who I'm calling the "pros".

What, in your opinions, separates the amateurs from the pros?

To kick off this discussion, let me offer an example, an opinion based on my own limited experience and observation:

Amateur: expend a lot of effort selling to other resellers (e.g. on NamePros and auction sites)

Pro: focuses marketing efforts on end users

Any other opinions?

 

[Spade]

I think the primary difference between the Amateur and the Pro is timing. Many of the pros you see consistently selling domain names in the x,xxx + region have been in the game longer then the amateurs. They have amassed better portfolios and know how to pick out quality domain names. They buy low and sell high.

Many of the new domainers take a lot of time to grow their domaining business. It takes effort and financial backing to be able to even attempt this game. It also will cost several hundred dollars in lessons of what not to do. Many people start with very poor registrations, not realizing or having not understood basic domainer understanding.

I think, given time. Amateur Domainers can blossom into a "pro" if they find a niche in the market and perfect it. I find that people do well when they focus on one aspect, be it Parking, Reselling, Developing, ect. But again, there is a large learning curve as Im sure youve seen on this forum.

Just my thoughts,
Justin

 

[gazzip]

On one end, I see folks who have struggled for a long time with only a few $XX to $XXX figure sales to show for it. These folks I'll call "amateurs" (and by this I don't mean any offense, I certainly consider myself in this category).

Then there are those who consistently seem to sell $X,XXX to $XX,XXX domains (or higher), who I'm calling the "pros".

What, in your opinions, separates the amateurs from the pros?

To kick off this discussion, let me offer an example, an opinion based on my own limited experience and observation:

Amateur: expend a lot of effort selling to other resellers (e.g. on NamePros and auction sites)

Pro: focuses marketing efforts on end users

Any other opinions?

The Pros have been at this for years and many of them have hundreds of thousands to invest in the best names dropping.

Its easier to make money if you have money - getting started is the major problem

Its usually the same 1/2 dozen people in the drops that get the top quality names. This happens to alot of people all the time

Money and years of experience means you can take advantage of the opportunities to snag the good names.

Take a look at this links to see what kind of money you're up against - http://www.dnjournal.com/cover/2007/january.htm

My time will come its early days for me :hehe:


.

 

[Kate]

There is a wide range of profile among domainers.
To me the "amateurs" depict those who are into domaining as a hobby, and not making any serious money, and not living from the proceeds of domaining.

Other people belong to the webmaster category, they hold domain portfolios that can be valuable, they buy and develop domain names. Reselling is not their core business.

Then you have the domainers who buy, sell and exchange names. They develop little and typically park domains to resell for a profit later. Their domain turnover can be quite high.

The big winners are those who have been early to the game and had the foresight to grab the good names while they were still available (they even used to be free...).
It's interesting to notice that some of today's big players are latecomers actually. They are catching up by investing big money in valuable domains.

There are still opportunities in domaining with a lots of market niches for everyone. But it's getting tougher. The later you enter the game, the harder it is to make a breakthrough.

 

[cache]

I think Amateur is someone who has other jobs. If they have the time, they will do a little bit domaining, if they don't have the time, they are not in a hurry to make the selling.

 

[tykoblue]

Great responses. I definitely see there are lots of ways to make money off domains (parking monetization, developing, selling portfolios, etc).

But for arguments sake, lets just consider one narrow area, buying and selling individual domain names. Even within this one approach, there are clearly differences between amateurs and pros, even if EVERYTHING ELSE IS EQUAL.

For example, we all know the recent vodka.com story. Do you think any amateur could have gotten $3 million for it? The dnjournal article said the guy who sold it found the buyer from an article in BusinessWeek. IS THAT CRAZY OR WHAT? How do you go from reading an article in a magazine to a $3 million sale? Did he just call up the Russion tycoon dude and say, hey, I'm Joe Domainer, want to buy my domain name? (hell I wouldn't even know how to get in touch with some billionaire I read about).

How many of you would have sold vodka.com for the first $XXXX or $XXXXX offer? (assuming you didn't know it could sell for $3mil)

Of course Vodka.com is an extreme example, I think the folks on the top of the dnjournal list are probably in a different league altogether. But there are a lot of less obviously valuable domain names which I think if you gave it to an amateur versus a pro, there would be a huge difference in how each profits from it.

I'm just trying to figure out what it is that makes that sort of difference. Marketing ability? Personality? Insight?

 

[verbster]

I think the difference--as shown in this week's DNJournal--is how some sellers postition themselves better and end up selling "neverworkagain.com" for $25,000" instead of $2500, "invisibleshield.com" for $38,000 instead of $3800...and finally, "ultimateguitar.com" for $101,000 instead of $10,000.

 

[Ronald Regging]

I agree with Gazzip. Money. If I had the money to invest in premium domains, I'd probably be making a killing. I would of had the money to buy lots of LLL.mobis back when they first released. Also there are some nice bargains to be found if you have the money and know where to look. I think most hobbyists put as much time and effort into it as the pros, they just dont have the means to capitalize. Maybe the hobbyists actually have to work a bit harder, because we have to sift through the junk that actually makes it to drops and try to find something that may have potential.

If someone wants to give me $10,000 to play with, I garuantee I'll turn it into $50,000 within a year

 

[gazzip]

Yep - Money makes money

I'm in a bid just now for Pocketbikeracing.com - Not a great name but very useable non the less - only 6 people in the bid including Vaxis and Bonkers !

This happens sooo often and they end up getting names for low xxx because they have alot deeper pockets - They can't loose IMO

I've seen some decent names go very cheap.

They also can afford to sit on a name for years and wait for a decent sale.

Hats off to them though - I wish I knew about domains earlier


.

 

[YesBrilliant]

In my oppinnion, I don't think money is the major factor, even though it is a very important one, for sure.

However, like Tykoblue mentioned, it is a combination of special characteristics, qualities that differentiates the Amateurs from the real Pros.

See Bill Gates, Onassis, Rockfeller. Several people can sell software, ships and oil but it does not make them rich or Pros in the game.

A combination of Vision, Timing, Personality, Attitude, Marketing Skills, Quick Thinking, Quick Learning, a bit of Luck maybe, and most specially Sales Ability.

This is what differentiates the Amateurs from the Pros. And it is valid for Domainers as well.

I hope one day I get there...

 

[gazzip]

A combination of Vision, Timing, Personality, Attitude, Marketing Skills, Quick Thinking, Quick Learning, a bit of Luck maybe, and most specially Sales Ability.

This is what differentiates the Amateurs from the Pros. And it is valid for Domainers as well.

I hope one day I get there...

very True and bags of money :lol:

I'm sure alot of the current top domainers are very well educated and come from other business backgrounds where they possibly made a fair bit of money.

I really do admire Rick Swartz who started out with big balls, vision and next to no money - truly a pioneer.

Now it seems to be Multi million dollar advertising companies that are cleaning up - Mr average cannot compete with that sort of investment.

.

 

[allnicksgone]

Patience is a major factor. If I had vodka.com and somebody offered $500,000 for it, it would be difficult to wait for $3 million. That's why I am an amateur.

 

[Ronald Regging]

Patience is a major factor. If I had vodka.com and somebody offered $500,000 for it, it would be difficult to wait for $3 million. That's why I am an amateur.

Thats a factor of money though... It's easy for some people to have patience, because they dont need the money. $500,000 would change my life considerably, so should I sit on a domain for 10 more years and live in poverty? Or sell it for a very nice upgrade in life?

 

[jacpar]

I like this thread. Helpful for me, a bit late but anyway helpful.
I am really an amateur ; I still have 2 years (renew delay) to make profit and to try to be a PRO, a NAMEPRO.

 

[000]

A combination of Vision, Timing, Personality, Attitude, Marketing Skills, Quick Thinking, Quick Learning, a bit of Luck maybe, and most specially Sales Ability.

Exactly what I was going to say.

Anyone can have a lot of money, but it's what they do with the money that shows whether they are an amateur or a pro.

 

[VURG]

Patience is a major factor. If I had vodka.com and somebody offered $500,000 for it, it would be difficult to wait for $3 million. That's why I am an amateur.

There are multiple ways to make money. One may wait for the $3 million sale. Another could have tripled their money in the time between the $1 million offer and $3 million sale.

I think that two key traits of pros are:

- Pros can take criticism.
- Pros are busy.

Don't the Pros go to NamePros.com and the Amateurs go to NameAmateurs.com?