How would you invest $5,000?

[teelamph]

I have an investor who wants to put $5k (or more) into domains. This person is an international real estate developer and investor who I introduced to domaining and is interested in doing some business with me. I have plenty of ideas, among these is getting ahold of some high quality mid $xxx price range domains. I'd like some input from some of you experts who maybe have done business of this nature before. So what would you do?
Thanks!

 

[labrocca]

I wouldn't. Right now it's an odd market. I would concentrate on sites earning income.

 

[-REECE-]

Good advice imho. I'm spending my money developing some of the domains I already have.

I wouldn't. Right now it's an odd market. I would concentrate on sites earning income.

 

[dbtbandit67]

it's a bad market to sell, but it's a terrific market to buy. you want to buy domains when they are cheaper. as a re-seller, it's a terrific time to pickup domains. i prefer quality over quantity, and i also prefer development over re-selling.

i would ask your investor for a list of keywords that he would be interested in. then i would plug those keywords into domains that were a 100% match with popular extensions, and make offers.

just because another domainer is making a profit off you, doesn't mean it's a bad purchase for the buyer. for one, development could offset those costs. and two, they could still be selling it below market value

i hope that helps =)

 

[teelamph]

I wouldn't. Right now it's an odd market. I would concentrate on sites earning income.

So are you saying possibly purchasing existing websites? I was thinking given the current market, I could get some good steals on category killer domains and such..

 

[labrocca]

I could get some good steals on category killer domains and such..

Premium domains aren't that cheap. For $5k you might score 1-5 names at best imho. Those names won't earn unless you resell. Sites earn and as they grow gain in value. However development isn't for everyone but then again neither is domaining.

I don't think many $xxx deals exist actually. Either you pay $x,xxx for solid domains or you find bargain basements for $xx. You can also hand-reg some (stick with dot coms). Maybe drop market you might might get a couple deals in your range.

 

[teelamph]

it's a bad market to sell, but it's a terrific market to buy. you want to buy domains when they are cheaper. as a re-seller, it's a terrific time to pickup domains. i prefer quality over quantity, and i also prefer development over re-selling.

i would ask your investor for a list of keywords that he would be interested in. then i would plug those keywords into domains that were a 100% match with popular extensions, and make offers.

just because another domainer is making a profit off you, doesn't mean it's a bad purchase for the buyer. for one, development could offset those costs. and two, they could still be selling it below market value

i hope that helps =)

Great info. The cool thing is, my investor is in no way internet savvy, and is giving me lots of freedom on the what type of domain (keywords etc.) to get in to. As far as developing, it's something I'd love to get into not only to create revenue but just to increase the value and resell. I just am not familiar with developing and never really have been. What I've done the past 7 months is lean more towards buying low, marketing correctly, and reselling. Thank you for your input! Reps added

 

[Dean]

Well you dont want to put all your eggs in one basket but a few quad premium LLLL.com and then 1 or 2 decent premium generics with the rest of the money would be how I would spend it.

 

[Jasonn]

Very carefully. I hope he doesn't have high expectations of what can be earned with 5 grand. You might be able to double your investment if you invest wisely but you can spend six figures and still not have a strong portfolio.

 

[labrocca]

Be careful with LLLL.com's as they are not really a proven market. Don't be fooled by the word "premium" in their description.

And yeah...$5 isn't that much to invest really. imho more money to be made from the dip in the stock market

 

[bmugford]

Yes, I would invest money in this market as I have been doing. But that being said you have to buy at discounts to create a buffer if the market keeps falling.

 

[Traveler]

I would think with $5,000 you could pick up some good deals on the afermarket right now, but the same money would go further in the months ahead in my opinion.

There is not going to be some sudden economic rebound anyime soon, governments are still trying to stick bandaids on the problem. Even with all the bandaids, it looks pretty certain there will be a deep recession. $5,000 is not a lot, but it might go a lot further in the domain market a few months from now.

 

[teelamph]

This is why I say $5k or more. He's seen examples of what I've done, what others have done etc. This $5k is to simply test the waters. I know of many great ways and resources to pick up some good $xxx names that may be worth much more. I have pretty good taste in domains, and simply will not purchase if I don't think I'm getting them for a steal, which I've done in the passed. Thanks everyone to all the great input so far, it's very much appreciated!

 

[Traveler]

I know of many great ways and resources to pick up some good $xxx names that may be worth much more.

Then you are Golden, just keep doing what you are doing.

 

[-REECE-]

That's a great strategy to employ at present. Wish you all the best!

I have pretty good taste in domains, and simply will not purchase if I don't think I'm getting them for a steal

 

[bmugford]

This is a strategy I have always employed, unless I had a specific plan for a domain. If you buy a domain at a bargain price, then you are more insulated from market conditions.

Brad

That's a great strategy to employ at present. Wish you all the best!

 

[labrocca]

If $5k is your test money that's reasonable then. Gonna assume that's about 10% of your budget.

 

[teelamph]

If $5k is your test money that's reasonable then. Gonna assume that's about 10% of your budget.

At this point, we have not set a budget. The next investment will reflect what was done with the initial investment. Fortunately, Im dealing with a personal acquaintance who is very open.

 

[Michael]

I would follow premium auctions like GreatDomains, Traffic, etc. and go for a good keyword domain. Those venues have seen some absolute steals recently. I already sold off my share, but a guy on the forums teamed up with me to buy Advising.com for $3,434 in Moniker's extended auction at the last Traffic conference; an obvious steal. This is the time to be buying generics without a doubt.

 

[teelamph]

This is the time to be buying generics without a doubt.

My thoughts exactly. Thanks for the info, and congrats on such an awesome domain!