Investment ??

[seamaster]

Hey, I am a newbie you can say but have been reading forums and doing my bit since few months (not been into actual buying/selling stuff), though own 200+ domains, need to ask If I want to invest $ 100,000 USD in domains, then what should be my best bet. My aim is to resell domains off.

A. I should buy a domain worth of hundred thousand.
B. I should buy 10 domains of 10000 USD each.
C. I should buy 5 domains of 10000 USD each and invest remaning 50000 USD in expired domain auctions, backorders and all.

appreciate the input.

cheers

 

[Traveler]

My two cents..

Buy the most premium names you can with your money that you see are undervalued. I would stick to the .com or super premium names in other extensions.

 

[Spade]

Personally. I would focus on the 5-10k realm - and I would leave enough money for decent development. Build traffic to premium domains that already receive it, and flip them from there.

 

[copper]

If you have $100K budget, invest $50K only.
Buy $1k - $5K domains.
You keep $50K free in case some super deal comes along.

 

[Ross]

Honetly what Spade said would be your best bet. That would also string your money through out the market rather than just in a couple domains. Also i would like to add if you can find deals in that range, which there are PLENTY, think about hold on to some of them for a future sale rather than flip. Domains that are selling for that much are usually good investments for the long run. Dont get me wrong though flipping is a great thing to do and i do it on a daily basis. Also if you buy those types of names look in to getting them in to live auctions. Those can often pay off more than just flipping the name and have a better chance of finding an end-user.

To refer to your original choices, personally i wouldn't do any of those. I would do a combo of flipping and holding for value with that much money. Also look in to LLL.coms and generics. Those types of domains are great domains for holding or finding an end-user.

Good Luck!

P.S. stay in the .com extention if you know whats good for you LOL

 

[-AR-]

Well if you have that much money, just start slowly and learn more about domains in general with time as you see good domains come along you will know what to buy and what not to buy. But dont go crazy in investing as you might end up spending too much money too fast...I would invest in some 3 letter .com if I had 100k to invest.

 

[Michael]

Personally. I would focus on the 5-10k realm - and I would leave enough money for decent development. Build traffic to premium domains that already receive it, and flip them from there.

I agree with Spade. In my opinion it is your best bet to diversify your portfolio a bit rather than dumping all $100k into a single name. Have a few LLL.com, a few one-word generics, a few high traffic, etc.

 

[accent]

The other variable is your time. You say you have been hanging out here and reading - a great start. Knowledge is power in domaining as much or more than anywhere else.

The more time you spend looking (time per day and number of days) the better deals you will find. And the better deals you find the more your ROI - regardless of the price level that you are working at. But that takes time, and to compete for the really good deals, a lot of it. There are people here who look through thousands of domains per day and only register one or two - for $7.50 each. Most people with higher budgets do not have time to research their purchases, Those with lower budgets get their domains for a fraction of the price the others pay, by using their time. I bought three domains yesterday for $22 (total) with an estibot value of over $2000. Do not think that you have to pay a lot to get a lot.

The same thing applies at higher price ranges - if you have time to study all the venues and previous prices and wait for the best deals you can do much better in LLL.com and generic .coms, which seem more suitable to the level of your investment.

My personal opinion is that I do not care for flipping. You have a lot more transactions so there is more risk of problems, margins are thinner, up-to-date knowledge is more vital, and people always want only your best stuff - the stuff that is likely to earn the most long term. Other people do great flipping, it is a personality thing, I guess.

 

[DnEbook]

dont forget that a nnn is alot more rare than a lll , 4500 lll's against 1000 nnn's

 

[Sameh]

Well if you have that much money, just start slowly and learn more about domains in general with time as you see good domains come along you will know what to buy and what not to buy. But dont go crazy in investing as you might end up spending too much money too fast...

Totally agreed.

 

[tabishis]

I agree with Spade. Spend $30k(MAX $5k/domain) on buying domains and sell ad spaces on your sites or just offer some sort of service to site visitors and voila! If you get a couple of hundred thousand visitors(combined for all sites) a month, you are good to go. You can easily earn $10k a month.

 

[onewordonly]

I would look at investing half in solid proven types of property and then when you have made that back you can take more risks. If it doesn't work out then you still have the other half to fall back on for plan B.

 

[seamaster]

thanks, i really appreciate the input, got a fair amount of idea.

 

[cdboard]

several weeks ago someone posted a comparison/analysis of (investing in) cheap domains versus expensive domains.

it suggested the recurring regfees would be a major drag on returns for cheap domains.

it would be worth reading if someone could link to it. (I didn't find it.)

 

[accent]

That post was by VURG:
http://www.namepros.com/domain-name-discussion/433724-hoarding-lots-of-domains-just-few.html

And my counterpoint stands - if you buy domains sufficiently below market the renewals are not a important drag on the ROI. And the easiest domains to buy well below the market are cheap domains.

... and VURG's counter, that many do not have the time to dig out below-market bargains, is also correct.

 

[cdboard]

that's the thread. thanks.


his post led me to think about a hypothetical domain portfolio as a retirement investment, with a ten-year holding period. and whether to buy cheap or expensive domains for it.

 

[irishmat]

that's the thread. thanks.


his post led me to think about a hypothetical domain portfolio as a retirement investment, with a ten-year holding period. and whether to buy cheap or expensive domains for it.

any model for this will be very dependent on your initial assumptions so i dont think its valid to look at it so in detail like that

look for 'value' in every name irrespective of the price, if you can the name for below what you think you can sell it for then consider purchasing it, therefore if you could sell straight away for a (small) profit then holding will (hopefully) increase those profits