Domaining vs Investing

[mh231]

Hello everyone! I'm new here but I've been kicking the domining can down the road for a better part of a month now in terms of research and self education.

I'm an investor. We own storage facilities, businesses, commercial/residential real estate. I have experience in web development and basic programming.

The more I read, the more domaining seems less like investing and more like gambling. The whole hand registering seems like trying to find a needle in a haystack. I keep reading that most new folks to domining will never be able to sell their hand registered domains etc. I understand there's learning curves and in order to learn, generally you have to spend/lose $$$.

Another thing I've noticed is many, many, many folks trying to get into this have no budget and are trying to find the quickest way possible to make money and want to spend as little as possible.

I guess what I'm trying to say...is there a difference in HOW I should move forward with educating myself on domining? I'm not particularly interested in hand registering domains and trying to find one that's worth a few hundred bucks...but I understand that perhaps that's recommended for someone who Is new to this.

In investing we mostly talk about cap rates, interest and ROI. I can generally run figures and produce a rough expected ROI. I'm struggling to find out how to do this with domaining.

Maybe I'm just too new, maybe I need to slow down, maybe I don't even belong here because domaining is not for me. I'm absolutely not looking for another job or a side hustle...I'm looking for a passive/semi passive investment strategy to add to my portfolio. I have a good budget. Our average RE returns are 8-15% but I don't even know how to begin to calculate a projected roi with domains if say I invest $25k.

You other investors, what strategy did you follow when it comes to domaining?

I'm open to criticism, opinions, suggestions, education resources...anything really.

 

[lock]

domaining vs investing - vs = DomainingInvesting gimme back my keywords.

 

[Recons.Com]

If it were an investment, there would be a better ROI than maybe 1% of the portfolio will be sold.

Maybe, before making statements about what is an investment, you'd spend time learning what ROI is?

1% you are referring to is about inventory turnover, not return on investment.

1% STR could result in 100% ROI or higher, depending on your costs and prices.

 

[redemo]

Hello everyone! I'm new here but I've been kicking the domining can down the road for a better part of a month now in terms of research and self education.

Well done. Research is 90% of the battle.

I'm an investor. We own storage facilities, businesses, commercial/residential real estate. I have experience in web development and basic programming.

That's a real game changer if you can develop your domain names. Most domainers either can't or make excuses not to.

The more I read, the more domaining seems less like investing and more like gambling.

Domaining isn't gambling but selling domain names is gambling, more often than not. Domaining isn't just selling, even if selling rammed down your spout morning, noon and night. Just mention developing domain names and watch the fountain of vitriol start gushing.

The whole hand registering seems like trying to find a needle in a haystack.

Not if your are developing, only if your are selling.

I keep reading that most new folks to domining will never be able to sell their hand registered domains etc. I understand there's learning curves and in order to learn, generally you have to spend/lose $$$.

Time as well as money, like all things. If you want to spend less time it will almost certainly mean spending more of your money in order to get somebody else to do the dirty work.

Another thing I've noticed is many, many, many folks trying to get into this have no budget and are trying to find the quickest way possible to make money and want to spend as little as possible.

You don't need a budget to get started, but depending on your established profit margins you will need both time and money to sustain your domain name empire, like any other business.

I guess what I'm trying to say...is there a difference in HOW I should move forward with educating myself on domining?

Yes, your number one priority is to earn a profit from your domain names. Ignore anybody who says you can only do that by selling. They aren't telling the truth, either through stubbornness or ignorance.

I'm not particularly interested in hand registering domains and trying to find one that's worth a few hundred bucks...but I understand that perhaps that's recommended for someone who Is new to this.

What's your established profit margin for each domain name? Are you trying to register for 10 dollars and sell for 100 dollars? If so, then aside from your development costs (which can be automated) you need to earn 27 cents per day from your domain name over one year. 27 cents per day.

In investing we mostly talk about cap rates, interest and ROI. I can generally run figures and produce a rough expected ROI. I'm struggling to find out how to do this with domaining.

Did you have a financial spreadsheet? Buy for 10 then develop and earn 100 (same as sell for 100) means earning 27 cents per day over one year. Yes, there are additional costs, so make that buy for 10 sell for 200 means earning 54 cents per day. It's a lot easier than most domainers think, and it's called profit. Something most domainers aren't really interested in.

Maybe I'm just too new, maybe I need to slow down, maybe I don't even belong here because domaining is not for me. I'm absolutely not looking for another job or a side hustle...I'm looking for a passive/semi passive investment strategy to add to my portfolio. I have a good budget. Our average RE returns are 8-15% but I don't even know how to begin to calculate a projected roi with domains if say I invest $25k.

Register 100 domain names for 500 dollars. Spend the rest on development costs, or wages for your hard working staff. Remember most domainers here are trying to flog you their domain names, aside from the hosting companies nobody wants you to develop your domain names BECAUSE THEY AREN'T MAKING ANY MONEY FROM YOU.

You other investors, what strategy did you follow when it comes to domaining?

Develop and monetise. Simple. It works.

I'm open to criticism, opinions, suggestions, education resources...anything really.

You'll get plenty of criticism if you decide to develop your domain names. Remember that ALL those who criticize you AREN'T MAKING ANY MONEY OUT OF YOU which is why they are so angry when you develop and earn a profit. What they want is for you to buy their domain names so THEY can make a profit not you. I'm not against buying and selling but if you really want to earn a profit from your domain names - unless you are a domain name selling professional - it's called development. You decide. Let me know a year from now how it works out.But whatever you do go all in or don't even start. It requires 100% effort. Anything less and you will definitely fail.

 

[bmugford]

Maybe, before making statements about what is an investment, you'd spend time learning what ROI is?

1% you are referring to is about inventory turnover, not return on investment.

1% STR could result in 100% ROI or higher, depending on your costs and prices.

Yeah, the STR only matters so much when it comes to raw numbers.

If I buy 100 domains for $50 each. I spent $5,000.
If I sell (1) for $10K I doubled by money in year one.

The next year I pay $1000 in renewals for 99 domains. I sell (1) for $5K.
I made 5x my money in year 2.

You still have 98 other domains left.

That is how low STR works when it comes to turning an overall profit.

Brad

 

[Eric Lyon]

Hello everyone! I'm new here but I've been kicking the domining can down the road for a better part of a month now in terms of research and self education.

I'm an investor. We own storage facilities, businesses, commercial/residential real estate. I have experience in web development and basic programming.

The more I read, the more domaining seems less like investing and more like gambling. The whole hand registering seems like trying to find a needle in a haystack. I keep reading that most new folks to domining will never be able to sell their hand registered domains etc. I understand there's learning curves and in order to learn, generally you have to spend/lose $$$.

Another thing I've noticed is many, many, many folks trying to get into this have no budget and are trying to find the quickest way possible to make money and want to spend as little as possible.

I guess what I'm trying to say...is there a difference in HOW I should move forward with educating myself on domining? I'm not particularly interested in hand registering domains and trying to find one that's worth a few hundred bucks...but I understand that perhaps that's recommended for someone who Is new to this.

In investing we mostly talk about cap rates, interest and ROI. I can generally run figures and produce a rough expected ROI. I'm struggling to find out how to do this with domaining.

Maybe I'm just too new, maybe I need to slow down, maybe I don't even belong here because domaining is not for me. I'm absolutely not looking for another job or a side hustle...I'm looking for a passive/semi passive investment strategy to add to my portfolio. I have a good budget. Our average RE returns are 8-15% but I don't even know how to begin to calculate a projected roi with domains if say I invest $25k.

You other investors, what strategy did you follow when it comes to domaining?

I'm open to criticism, opinions, suggestions, education resources...anything really.

Domaining Vs investing are actually two different beasts from that same cloth, with different asset assessment strategies.

You mentioned running numbers to find the sweet spots in general investments. You do the same with domains, just with different value metrics.

This is a quote from a related reply I made elsewhere yesterday on namePros that may help clarify:

Personally, I feel that these types of evaluations are the life-blood of the industry. They give a genuine use look at the potential of an asset based on their existing life cycle, trends, niche markets, geography, ranking data, collectability, brandability, reseller interests, end-user interests, target economics, and more.

At the end of the day, a better understanding on how an end-user will brand, develop, market, and scale in multiple industries/markets will help shed light on the revenue potential a business model will have developing a domain asset for-profit. It's that model, that has some of the greater influence to add to the value of a domain asset combined with the hundreds of other value metrics that may or may not apply for added or eliminated value.

The quote is referring to an evaluation done in the Professional Appraisal section of namePros.

Welcome to namePros!

 

[.X.]

There are multiple tiers of income producing in the industry , and then collecting , which I do .i consider collecting, Investing , the names I collect are either Liquid, one word, or very strong keyword domains . I will at some point end up getting an offer I can’t refuse on these collected names , until then, they stay in my collection , no matter how volatile the industry is , or whatever the case may be, I will not sell them.

Domaining on the other hand is just good fun , from website development trends , through the years I have just jumped in where I can make a dollar, from domain parking to affiliate marketing sales , to Google Adsense and beyond … there are always to make money in domaining itself .. it is just about how much Capitol a person wants to put into it vs how fast of a return on investment vs goal on ROI

 

[NicoleEdwards]

Hello everyone! I'm new here but I've been kicking the domining can down the road for a better part of a month now in terms of research and self education.

I'm an investor. We own storage facilities, businesses, commercial/residential real estate. I have experience in web development and basic programming.

The more I read, the more domaining seems less like investing and more like gambling. The whole hand registering seems like trying to find a needle in a haystack. I keep reading that most new folks to domining will never be able to sell their hand registered domains etc. I understand there's learning curves and in order to learn, generally you have to spend/lose $$$.

Another thing I've noticed is many, many, many folks trying to get into this have no budget and are trying to find the quickest way possible to make money and want to spend as little as possible.

I guess what I'm trying to say...is there a difference in HOW I should move forward with educating myself on domining? I'm not particularly interested in hand registering domains and trying to find one that's worth a few hundred bucks...but I understand that perhaps that's recommended for someone who Is new to this.

In investing we mostly talk about cap rates, interest and ROI. I can generally run figures and produce a rough expected ROI. I'm struggling to find out how to do this with domaining.

Maybe I'm just too new, maybe I need to slow down, maybe I don't even belong here because domaining is not for me. I'm absolutely not looking for another job or a side hustle...I'm looking for a passive/semi passive investment strategy to add to my portfolio. I have a good budget. Our average RE returns are 8-15% but I don't even know how to begin to calculate a projected roi with domains if say I invest $25k.

You other investors, what strategy did you follow when it comes to domaining?

I'm open to criticism, opinions, suggestions, education resources...anything really.

ok got it.

 

[Mr. Deleted]

If you want to get involved my recommendation is for 1-4 letter domain names, com net or orgs. Most others are speculative, like for trending topics. Then of course there are single word names on sites like this that you could get for a decent price. Preferably .coms. Some .orgs would work depending on the industry they serve. Net is not a great extension but it can work too.

 

[NameMaxi.com]

Domaining can be a great investment strategy if you look at it from a long-term perspective rather than a quick-money scheme.

While calculating ROI in the domain world might not be as straightforward as in real estate, you can look at factors like historical sales data, demand for specific keywords, and potential end-user markets to estimate the value of your portfolio over time.

Take the time to learn this sector. There’s actually a lot of things to consider or try while having your own domain, and just like in real estate, you can do something with your investment to sell it higher for later on.

Here are some tools I used when I started in domain name investing:

1. Name Maxi (namemaxi .com) - a third-party search tool that lets you filter the list by different factors
2. Domain Index (domainindex .com) - This lets you appraise domain names.
3. Short Name (shortname .com) - shows the status of the names about their listings or auctions
4. NameBio (namebio .com - shows you the latest aftermarket sales in the market
5. Google Analytics (analytics.google .com) - helps you find the most searched words
6. Namecheap and Godaddy bulk search tool
7. Afternic (afternic .com) - Buy and sell domain alternative with auction
8. Sedo (sedo .com) - Buy and sell domain alternative with auction
9. US Zip (uszip .com) - this is for the number.com investors
10. ForeBears (forebears .io) - shows you popular names across different categories

With these tools, you can maximize your investment power.

 

[VURG]

I only have three domains now. I used to have more than a thousand. My focus is to develop a domain name wholesaler business. I am working on this slowly.