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Domain investing

Labeled as guide in General Domain Discussion started by Dave, May 20, 2019.

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  1. 420domainer

    420domainer Top Member VIP

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    Awesomeness. This should be permanently stuck at the top of the beginners section. Fantastic advice and insights, thanks @Dave.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. 4better

    4better Established Domainer VIP

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    When completely resting on a bed far away from all worldly distractions, one is filled with renewed energy, strength and inspiration to share thoughts and ideas that are good and beneficial for mankind. Thanks @Dave for all these helpful tips. (y)
     
  3. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

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    Nice article. This is a good starting point for people new to the field.

    Brad
     
  4. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

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    I agree. I sell plenty of non .COM domains, especially .US.

    However, I would still recommend .COM if you are new to the field.

    It is going to be very hard to turn a profit in far less liquid extensions if you can't do it in .COM. You start with the proof of concept, then can move to other extensions when you have a good understanding.

    Brad
     
  5. Taycro1

    Taycro1 New Member

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    This is of immense benefit to a newcomer like myself. Thanks for the post.
     
  6. Dave

    Dave Top Member VIP ★★★★★★★★★★

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    Good luck to you on your domaining journey. :xf.smile:
     
  7. hookbox

    hookbox Top Member VIP

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    Nice post. @Dave I think you should change the title to Domain Investing Guide so it stands out for newbies searching for info.
     
  8. JustinDomains

    JustinDomains New Member

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    I am glad I came across this post because I am about to start my journey. I heard about this zone from Ali Zandi, so here I am. Thanks for this @Dave.
     
  9. stub

    stub Top Member PRO VIP ★★★★★★★★★★

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    @Dave - Nice post. Probably the most outstanding post of 2019. Concise and well written. Very informative. I give it 6 out of 5 stars :)
     
  10. TERADOMAIN

    TERADOMAIN Top Member VIP

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    Very good info.

    Sharing is caring.

    Thanks
     
  11. Dave

    Dave Top Member VIP ★★★★★★★★★★

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    An in depth and more specific guide like that would take some serious time to write. There are so many variables and factors at play. I will try to breakdown brandable domains for you further though and then provide an example of a recent hand registration of mine that has been accepted at BP for over $3k.

    There are 3 primary types of brandable domains:
    • Niche specific
    • Generic
    • One letter difference
    Niche Specific

    These are domains that have a clear identifiable niche keyword. Examples of this type of brandable are:
    • CryptoPlanet / com (crypto)
    • FinSpot / com (finance)
    • CannaBox / com (cannabis)
    • HoloBase / com (hologram / holography / vr)
    These are in my opinion the easiest type of brandables to get started with. You want to try and focus on trending, popular or evergreen niches and appropriate prefixes or suffixes that flow well with the niche keyword, are pronounceable and preferably a maximum of 3 syllables. The sweet spot for the maximum length is 12 characters, however there can be exceptions to this if the niche is a long keyword.

    Pros:
    • Much easier to get started with, you have a base keyword (crypto, vr, nutri, medi etc) as a foundation to work with
    • Temporary increased chance of selling during a hot phase for any particular niche, take Crypto and Blockchain in 2017-2018 as examples
    • If a niche is in its infancy but you know will BOOM, you have chance to acquire many names early on. This is exactly what happened with crypto, coin, token, vr etc. I recall vrxxx selling for $10k, cryptoworld selling for $200k, so on and so forth.
    Cons:
    • More time consuming research, identifying what niches to take a punt on and what niches to avoid, recent sales data etc.
    • Much lower chance of selling during times where a niche is not so popular, less startups forming in the niche etc.

    Generic

    These are generic with no identifiable niche. Examples of generic brandables are:
    • RedRooster / com
    • GreenGoose / com
    • IntelliZone / com
    • SmartBase / com
    • BlueBird / com
    • HappyMonkey / com
    • HappyBee / com
    Try to follow the same rules as niche specific, max 12 characters and 3 syllables.

    Pros:
    • General purpose use, no need for end users to pigeon hole themselves into niche
    • Higher chance of selling than niche specific brandables. In my experience niche specific brandables are the 1-2%, these are the percentages above that I showed in my tiered list
    • Doesn't take much research to identify a good generic brand name, a quick company search to see how many are using the name is good enough
    Cons:
    • Generally more difficult and costly to acquire than niche specific on the aftermarket, although if a niche is really hot like cannabis is at the moment there are exceptions
    One Letter Difference

    This is taking a niche or well known word and replacing one letter with another so it minimally affects pronunciation.

    Examples:
    • Krypto / com
    • Konversions / com (I actually paid $25 for this and later sold for 4 figs)
    • Bedz / com
    • Ignyte / com
    No real need for pros or cons here, one letter difference domains are more self explanatory imo.

    Example of a recent hand registration of mine

    I recently hand registered HoloRiver, which has now been accepted at Brandpa with a price of $3.2k.

    How did I know to register this? What was I thinking at the time?

    Holo, which encompasses holography, holograms, virtual reality and such is a niche identifying keyword that is gradually growing in popularity in recent times. According to dofo there are over 109,000 domains registered containing holo and over 299,000 containing river.

    There are many reported .com sales with holo as the starting keyword, over 71 reported on Namebio:

    holoform / com - $10,000
    holoride / com - $5,499
    holoshop / com - $3,000
    holohome / com - $3,000

    and many more.

    There are also many reported .com sales with river as the ending keyword:

    GoldenRiver / com - $6k
    GreenRiver / com - $6k
    OakRiver / com - $4k

    With the number of registered domains containing each keyword and sales, it started to become clear to me that river was a commonly enough suffix used in branding. Plenty of existing companies using this in their branding is always a good sign. For example Fresh River healthcare.

    I decided that for a hand registration in a niche that was growing HoloRiver / com was for sure something worth taking a chance on at $6.99. If I were to register 100 domains of similar quality I would hopefully have a somewhat decent chance of selling one some day for $2k-3k, hence profit.

    Brandpa of course agreed with me on the quality and hence the name is now published.

    Final Thoughts

    There is never any guarantee in domaining. Brandables are NOT like liquid domains. Please please please remember this before spending thousands on them. Most will likely NEVER sell, but the hope if you follow the numbers is that if register enough brandables of similar quality you have a CHANCE of selling one someday and make a PROFIT. You can then use that profit to buy higher quality domains that have more liquid value and higher sell through rate.

    Brandables of this nature and quality are a good choice if you're starting out and don't have a lot of capital to invest in highly liquid domain names like LL, LLL, LLLL and quality one word .coms.

    I can't stress it enough though. Simply having a domain accepted at a brandable marketplace is no guarantee you'll get a sale.

    If you can't afford to lose money you'll be spending on brandables then take a look at other type of domains to invest in. You can still acquire LLLL's for low $xxx and those have more liquid value. You can also take a look into GEO domains that typically have a much higher sell through rate via outbound, although much lower profit margins.

    Also please remember to do your own further research before investing your money!

    I am not an authoritative figure on domains but I have sold hundreds since 2007. I don't sell anywhere near as many as I used to but I still like to think my experience still counts for something and if I can help you guys breakdown your own thought processes, buying patterns and such in more depth and SAVE you money than I am happy to offer my advice in this manner.

    Thanks and please be careful out there. Domaining can be a dangerous game at times!
     
  12. stub

    stub Top Member PRO VIP ★★★★★★★★★★

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    @Dave - Another great addition to your 1st post. IMHO.
     
  13. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    Great post Dave, I would add a fourth which would be invented, a solid % of BrandBucket sales are those, just made up or invented words like Cobsi.com or Diaxi.com (actual sales).
     
  14. Dave

    Dave Top Member VIP ★★★★★★★★★★

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    Yes, I should've listed made up brandables, but those are very hard to write about and really do have the lowest chance of selling if over 5 letters in my opinion.

    One quick thing, I think for best success with brandables like that go for repeating letter 5L's. So domains like frigg, boomo, dappa, pommo. Again in my opinion.

    Thanks
     
  15. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    Agree those are some of the best.
     
  16. themavrick

    themavrick Upgraded Member Gold Account

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    Thanks Dave. Its a refresher for me.
     
  17. dande

    dande UNNATURE.COM VIP

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    Interesting read. Thanks for the good job in putting this together.

    Category Killar domains is my focus these days. It doesn't have to be a massive niche like the examples you gave. It can be just exact match domain for small niches or specific products and services.
     
    Last edited: May 27, 2019
  18. Gazam

    Gazam Established Member

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  19. HudsonDomains

    HudsonDomains Upgraded Member Gold Account

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    Thank you Dave! Very useful and well-written.
     
  20. Dave

    Dave Top Member VIP ★★★★★★★★★★

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    I had a question regarding search volume and if I could elaborate further.

    What I mean by search volume is the local exact match search volume. Not broad. Use Google Keyword Planner and set your filter so that it targets either the country / state and only do exact.

    It is very important to be based on exact not broad. You want your domains keywords to be exactly what people are searching for and what advertisers are paying for. Not broadly related.

    Thanks
     
  21. Vito

    Vito Domain Names Matter Gold Account VIP Trusted Contest Holder ★★★★★★★★★★

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    Dave, this is definitely one of the best posts I have seen as an intro to domaining, if not the best. Very nice job.

    Anyone who would like to enter into domaining, before you invest your hard earned money into domain names, I truly suggest you read this whole thread TWICE before jumping in and making some costly mistakes.

    Thanks for taking the time to put this together.
    It's priceless.
     
  22. karmaco

    karmaco Top Member VIP

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    Great helpful material @Dave. We need more guides like this on this platform. Pinned for all eternity.

    The next guide I would like to see is other things taken into account before registering or picking up a dropped name. Not sure enough people know they have to do some research and not just grab it because it’s available. Even with the drops the first question should be —why did they drop this —followed by some research.
     
  23. Fadi H

    Fadi H NamesMan Gold Account VIP

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    Thank you for the great post.

    For anyone looking to invest in brandable domains, I have included a few tips in the following thread that you may find useful .. Click here
     
  24. nameaura

    nameaura NameHunk.com Blue Account

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    awesome stuff
     
  25. droned

    droned Established Member

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    Can't find Dave post about brandables it was a very valuable information.
     

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