How far would you go?

[domaino]

...if you had the perfect domain at your fingertips but couldn't afford it? Would you seek credit and take the risk? How much would you value your own judgement at? I'm not in this position, well not really. But I often feel that to get where we want to go, we really need to have a good volume of starting capital, otherwise, the path to really achieving something in this industry is much further away.

I have never taken out any great volume of credit. I only began domaining about a year and a half ago (i'm almost 20 now), and my sales have ranged from $20 - $2300 profit. Obviously the higher end of this scale is pretty decent, but unfortunately I got out of the game and spent the profit elsewhere.

Opinions on this? How far would you go, or indeed have you gone?

 

[~Kingpin~]

...if you had the perfect domain at your fingertips but couldn't afford it? Would you seek credit and take the risk? How much would you value your own judgement at? I'm not in this position, well not really. But I often feel that to get where we want to go, we really need to have a good volume of starting capital, otherwise, the path to really achieving something in this industry is much further away.

I have never taken out any great volume of credit. I only began domaining about a year and a half ago (i'm almost 20 now), and my sales have ranged from $20 - $2300 profit. Obviously the higher end of this scale is pretty decent, but unfortunately I got out of the game and spent the profit elsewhere.

Opinions on this? How far would you go, or indeed have you gone?

Bite off more than you can chew, then chew it.
- Ella Williams

Here's some more wisdom.

 

[cache]

to register a un-register name does not cost you much. If you buy and sell/trade, then it will be much risky to do because you would have to sit on the name for a long time. The domain market is not very liquid at this point.

 

[ExpireGuy]

...if you had the perfect domain at your fingertips but couldn't afford it? Would you seek credit and take the risk? How much would you value your own judgement at? I'm not in this position, well not really. But I often feel that to get where we want to go, we really need to have a good volume of starting capital, otherwise, the path to really achieving something in this industry is much further away.

I have never taken out any great volume of credit. I only began domaining about a year and a half ago (i'm almost 20 now), and my sales have ranged from $20 - $2300 profit. Obviously the higher end of this scale is pretty decent, but unfortunately I got out of the game and spent the profit elsewhere.

Opinions on this? How far would you go, or indeed have you gone?

One thing I've learned is never spend beyond your means or you'll go broke very quickly in this business. Gauging many factors like traffic and revenue....nothing is ever a sure thing. But the upside is there is always another opportunity around every corner, it's about being in the right place at the right time with the proper capital and a bit of luck....I've had numerous deals in this scope fall through because one of the previous mentioned factors didn't gel...
Case in point, in the past 24 hrs I was in negotiations to by a dn with traffic that sold for 10k to another buyer, I would have snagged it at that price had I known the BIN, which by the way I asked him for on more than one occasion. Had this happened 3 years ago i would've been bitter, but I brush it off knowing that another dn will present itself in no time of an equal caliber and cost...and wouldn't you know it I'm in talks for a prime 3 letter .com for 3k Canadian...

 

[floatingworld]

hmm what is the criteria for your domain to be perfect? are you really really sure that you will not be left with a debt and interest payments? The only reason for a plunge is if you know that the name could immediately be flipped for a pretty penny.

 

[niceguy]

...if you had the perfect domain at your fingertips but couldn't afford it? Would you seek credit and take the risk? How much would you value your own judgement at? I'm not in this position, well not really. But I often feel that to get where we want to go, we really need to have a good volume of starting capital, otherwise, the path to really achieving something in this industry is much further away.

I have never taken out any great volume of credit. I only began domaining about a year and a half ago (i'm almost 20 now), and my sales have ranged from $20 - $2300 profit. Obviously the higher end of this scale is pretty decent, but unfortunately I got out of the game and spent the profit elsewhere.

Opinions on this? How far would you go, or indeed have you gone?

This may be quite contrary to what you get in terms of advice, and the comments is "free" so value it accordingly.....

So you are almost 20 now.....a great season of life to take risk! If you are confident in something (and you have some history of being right about things), take a flyer - beg, borrow, partner (not steal ) anything you can and take a risk. You WILL lose some of the time - maybe even most of the time - but one win will go a long way...

Yes there are always opportunities out there - and if you don't take this one there is always the next one.....but - why not take the opportunity in front of you.

If I was really confident about something (and I'm 45 with 4 kids...) I would take a risk - and that includes borrowing money to buy a domain if I had too. Obviously I there are a lot of definitions of "being confident" about something..

Risk is good - it is were the biggest rewards are and what keeps you "alive"



Peace,
Tarry G

PS Hopefully you will get a lot of contrary comments so you can become a well balanced person...... :hehe:

 

[Domainate.com]

Opinions on this? How far would you go, or indeed have you gone?

Well, before last Wednesday, I was pretty much broke and had about $3500 to pay off on my credit cards thanks to website and domain purchases. One of the domains I purchased for a few thousand that essentially took me down from having money to not having money is a name I have a world of confidence in for the future as a developed site, and is really only the 2nd purchase from someone else with the full intention of eventual development (eventual as in when I can afford it!). Usually I might purchase names from someone else in the $500-$1000 range with the hope that I can resell the name for a lot more.

Speaking from experience though, I would strongly advice against doing it. I have a gungho attitude towards domains and websites because I've got full confidence in what I'm doing coming from past sales, from everyone's opinions on my names, reputation here and DiscussNames, etc. Even then, I had a situation like before last Wednesday where for a few days, I had barely any money in the bank account, over $3k in credit card debt, and a looming car and rent payment. It is not a very pleasant situation, and some people would absolutely freak out, quit, throw it all away and sell their portfolio for a tiny fraction of what it's worth to get back to stability, etc. Heck, I'm sure if I stuck the minimum bid back down to $10k on Sedo, I'd get another $10k bid in a day or two and could unload that name, but with all the direct offers to people I had to make to find that one awesome deal of a name and with my confidence in being able to get high $xx,xxx within the next year or so, I would hate myself afterwards for doing it.

So yea...all I can say is that the phrase isn't "preach what you practice," and I would sooner tell people to not go neck deep in this business than to do it. There is so much competition for the few sales that go on that it's almost impossible to expect getting even just 1 sure sale a month anymore, even with a 500+ domain portfolio. It really is like gambling, or like "investing" in lottery tickets.

 

[Easydoms]

Not recommended, as crooky's comments, nothing is 100% even if you think it is.

 

[SimpleDomaining]

thats like to go to casino and take a credit card to play, instead of cash. NO never would do that. domaining is same gambling. and if i will start use credit card , i will consider myself as gambling addicted person.

 

[verbster]

There's a thin line and big difference between being financially foolish and and financially opportunistic.

If you think $3000 is a huge amount of money, and it's what you need to buy something like ithinkthismightbeperfect.com, but you have doubts...if you feel it's a big risk, then don't buy it. It's not the perfect name if there's fear involved.

If you have no doubts, even though you have to scramble for the money, do it. You will not regret it. Is $10,000 too much to risk for loans.com or movies.com? $20K? $50K? Are you serious? I'd hock my car, house, dog and mother-in-law. To get something like sex.com for $100,000, I'd hock my wife, too. She'd get over it with a few million in the bank within a week.

 

[Phronesis]

Would have to be a sure thing. Domain name market is highly illiquid - not as bad as real estate market but close.

 

[mebreezy]

I've noticed the domain market is just like the stock market. Think the space travel industry is going to boom in the next 20 years? Could. Go buy spaceflight.com. It's not available but if it were, shit go for it.
The main difference between the stock market and domain market is that with a stock, it's mainly controlled by hype and how the company does. In the domain market if there's no hype for your name and nobody wants it you can only sell it for a reg fee... BUT you have the option to develop it (with a clever idea) and make it something worth $$$.

 

[Jasdon]

He who dares, wins. I'm with niceguy on this one!

You should never regret trying something, even if it doesn't work out. How many older members of this and other forums could have bought $xxx,xxx dns for $xxxx 5 or 6 years ago but didn't?

That'd leave a bad taste in my mouth. I'm 37, got 4 kids, tried a few other things before that didn't work - any regrets ? No.
If I'd not tried, I'd be a 'what if' man.

Bought my first domain 9 months ago, now got over 300, my biggest sale so far was $250, biggest purchase $40 - nearly all paid for from sales. I'm just about to approach a company who hold a great domain but don't use or park it - if they are interested in a sale I will go upto $15000, most of which I will have to borrow if they accept, but I think it'd be worth it. I think it will sell within a year for very high $xx,xxx, maybe even low $xxx,xxx (at current values).
Chances are massively against me getting it, but if I don't try I KNOW I won't get it.

If they say yes, I'll get that $15k somewhere - or regret it forever.

By the way, I don't gamble on sports / casinos or anything like that.

He who dares, wins.

 

[Domainate.com]

People always try comparing the domain market to something else. I really don't think you can. Where else can you buy 2 .com domains, seen in the exact same light by every registrar as all .com names are, and within a year be able to sell one of them for $1500 and not be able to sell the other for even $1? NOTHING is like the domain market. It's highly unlikely a stock will ever go up over 10000% in less than a year, and yet the domain selling for $1500 in my example sentence would have essentially done that.

It would almost be like antiques, but even then there are methods of valuation that more or less work depending on when the object was made, where it was made, who by, for what purpose, etc. (otherwise, what's the point of Antiques Road Show?). Domain names aren't even close to as cut-and-dry as that.

That's one of the reasons why I advise against going for broke on a particular name. Nothing is ever for sure in domains.