Buy Top Value or ... ?

[DomainMart]

Art dealers frequently advise investors to buy top works of established artists (masterpieces).

Do you agree with the following proposition?

Proposition: Domain name investors should acquire top domain names or buy the most expensive domain name they can afford.

 

[DavidH]

My grandfather collected antiques and he was very successful at it for many years. His philosophy was always to purchase the very best quality items he could afford, which were always undamaged. If he had a choice between a second rate piece by a major artist or a first rate piece by a secondary artist, he would always go for the latter.

Quality always wins over quantity and the very best of anything will always sell, even when the market is poor. Whether that always equates to the most expensive domains available may be debatable but I certainly agree to go for the best quality you can find / afford.

DavidH

 

[Kate]

IMO the trick is not to purchase the most expensive items (provided you can afford them in the first place) but to purchase items offering the best long-term prospects. Just because it's expensive does not means it's good or will find a seller, and all that shines isn't gold...

 

[DomainSage]

I agree with Kate, what I look for is ROI ... It does not matter if it is few bucks on an expired domain or a few thousand on an auction / direct.

I think there is potentially more money in the higher priced domains, but there is also more risk

All the best

Richard

 

[DomainMart]

Kate and Richard rephrased the question beautifully in terms of ROI. However, Richard seems to suggest that high-priced domain names offer the best ROI, while Kate believes there are high ROI opportunities at various price levels.

Please correct me if I misunderstood.

Thanks for your input.

 

[DomainSage]

I think there are chances to make a profit at all price levels. One thing I think about is would I rather have 100 domains that cost me $10 and make $10 each ( 100% ), or one that cost me $1000 that makes me $1000.

In my opinion the first option is the safest, but takes the most work. Whilst the second option is more risky but will probably return more $$.

This assumes that you work at the domain(s) and does not take into concideration the chance of a long shot domain hitting big bucks.

In terms of %ROI you will probably see a better figure from cheaper domains, in terms of the bottom line $$ and time invested you will probably be better with the high quality ones.

Please note this is purely my thinking ... So probably wrong

All the best

Richard

 

[DOMiNIC]

The bottom has fallen out of the fine arts market more than once.

 

[cache]

I think for someone new, it is better not to buy expensive ones just because the lack of experience.

For the experts, there are ways to make money either way, this is the same in the stock market: someone choose to buy risky penny stocks, someone to buy index etc.

 

[DomainSage]

Well said cache, if you are new to trading stick with the lower end of the market to start with whilst you learn the ropes. A lot of small businesses go under ( not just domain traders ) because they start throwing too much money at it to start with.