discuss Is domaining closer to real estate… or closer to gambling?

[nicenic]

HI, there. I’ve been thinking about this a lot lately.

Do you think domaining works more like real estate, where research and patience pay off? Or does it feel more like gambling, where timing and luck matter more than skill?

Have you had moments that made you switch sides?

 

[MasterOfMyDomains]

More AI generated content proudly supported by Namepros.

 

[Brother Bob]

HI, there. I’ve been thinking about this a lot lately.

Do you think domaining works more like real estate, where research and patience pay off? Or does it feel more like gambling, where timing and luck matter more than skill?

Have you had moments that made you switch sides?

I have also considered the same thing, and I'm still uncertain if it's gambling since my beliefs don't allow for it. It can be quite addictive, which makes it feel like gambling...unlike real estate, which doesn't evoke those feelings.

@Kyle Tully once stated that it ought to be regarded as a business rather than gamble.

 

[nicenic]

More AI generated content proudly supported by Namepros.

Sorry for the confusion, MasterOfMyDomains

English isn’t our first language, so we need AI to keep the conversation smooth.

I have also considered the same thing, and I'm still uncertain if it's gambling since my beliefs don't allow for it. It can be quite addictive, which makes it feel like gambling...unlike real estate, which doesn't evoke those feelings.

@Kyle Tully once stated that it ought to be regarded as a business rather than gamble.

Once you buy based on real demand, not adrenaline, it stops feeling like gambling, right?

 

[andom]

If you buy liquid domains, it’s similar to real estate: you can resell at a loss or at a profit depending on market conditions.
All other classes of domains that lack liquidity, even if purchased with research and patience, are an 'optimized' gamble that may or may not pay off.

 

[boker]

HI, there. I’ve been thinking about this a lot lately.

Do you think domaining works more like real estate, where research and patience pay off? Or does it feel more like gambling, where timing and luck matter more than skill?

Have you had moments that made you switch sides?

In gambling, a first time gambler, could have the same profit as an old gambler. Try to do that with domaining. For sure, there most be some luck involved in domaining as well, but you can't do it constant based on luck. Related to real estate, you can use the luck there as well. In our country, there are some real estate developers, who started just by pure luck. For example, one has bought a lot of land for his sheeps and fast forward couple of years later, thousands of apartments and houses started to be builded next to it. Evidently, he moved his sheeps and started selling plots of lands. In conclusion, domaining should be between them, with more luck involved than in real estate, but lots of knowledge needed to succeed, than in gambling.

 

[Xukezu]

If the comparison could be expanded a bit I would suggest that a domain name is more like a stock option in which you gain exclusive control over an asset for a specific length of time under certain conditions. It can be sold, leased, or otherwise utilized by the option holder for the duration of the contract.

The two asset classes, real estate and domains, have many areas in common when considering your rights to use the asset but are not really comparable when compared to each other.

The one factor that is common to both activities is the introduction of unnecessary outsiders putting themselves in the equation. Real estate agents/brokers, domain brokers, lenders, etc. are all part of the parasite syndrome of modern commerce.

 

[Eric Lyon]

A Combination of Both - It's a digital real estate gamble

But then, there is a class of investors in the real estate sector that consider real-property a gamble as well.

Buying a real-property in distress and then investing into rehabilitation to flip for a profit doesn't always turn a profit and many times bumps the investor out of the game with a huge loss. Much like some people buying distressed domains + website projects, thinking they will revamp the back end, add features, give it a new paint-job and resell it for a profit, just end up stuck with it, breaking even or at a loss.

Blank canvas digital assets (Domain names) can also be a relative gamble to undeveloped real-property (1 to 5 acre plots). You get into it for a good deal and then play the sit and wait game, hoping others will start to develop first, so you don't have to take the more expensive gamble. Then you cross your fingers and hope their developments raise the land value assessment on neighboring plots. The more that gets developed, the higher the other plots potential value rises.

Then its just a matter of when to flip it, before the current developments start to crash in value due to bad neighbors trashing the place, lack of tourism, or lack of resources to draw in residents. After all, no commercial business is going to want a spot where there are no customers... (Unless it's an industrial development), but even then, there needs to be potential workers within 50 miles to employ and operate the business).

When the wait is really long, some flip fast in an aftermarket, like domains to let someone else hold it a while until the time is right (If it's ever right).

So, ya.... a combination of both... in my opinion...

 

[biggie]

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Hi

hey, a eye, can you think of another question that i can post in general discussion section

like does the world need more domains or not?


imo…..

 

[pb]

HI, there. I’ve been thinking about this a lot lately.

Any success?

 

[korganian]

"Luck" is when opportunity meets preparation.

 

[johnn]

Domaining is closer to a wife because you never know what will happen after you bought it.

 

[monotheist]

HI, there. I’ve been thinking about this a lot lately.

Do you think domaining works more like real estate, where research and patience pay off? Or does it feel more like gambling, where timing and luck matter more than skill?

Have you had moments that made you switch sides?

It is definitely not real estate because there is no inherent value. Domaining is gambling because you are staking wealth on an uncertain outcome. It is forbidden is all major religions.

 

[nicenic]

If you buy liquid domains, it’s similar to real estate: you can resell at a loss or at a profit depending on market conditions.
All other classes of domains that lack liquidity, even if purchased with research and patience, are an 'optimized' gamble that may or may not pay off.

I’ve also found liquidity shifts quite a bit once real end-user demand enters the picture.

In gambling, a first time gambler, could have the same profit as an old gambler. Try to do that with domaining. For sure, there most be some luck involved in domaining as well, but you can't do it constant based on luck. Related to real estate, you can use the luck there as well. In our country, there are some real estate developers, who started just by pure luck. For example, one has bought a lot of land for his sheeps and fast forward couple of years later, thousands of apartments and houses started to be builded next to it. Evidently, he moved his sheeps and started selling plots of lands. In conclusion, domaining should be between them, with more luck involved than in real estate, but lots of knowledge needed to succeed, than in gambling.

True, domaining leans heavily on pattern recognition, which is why experience compounds so differently.

If the comparison could be expanded a bit I would suggest that a domain name is more like a stock option in which you gain exclusive control over an asset for a specific length of time under certain conditions. It can be sold, leased, or otherwise utilized by the option holder for the duration of the contract.

The two asset classes, real estate and domains, have many areas in common when considering your rights to use the asset but are not really comparable when compared to each other.

The one factor that is common to both activities is the introduction of unnecessary outsiders putting themselves in the equation. Real estate agents/brokers, domain brokers, lenders, etc. are all part of the parasite syndrome of modern commerce.

The options framing resonates, especially in how both reward timing and informed positioning.

A Combination of Both - It's a digital real estate gamble

But then, there is a class of investors in the real estate sector that consider real-property a gamble as well.

Buying a real-property in distress and then investing into rehabilitation to flip for a profit doesn't always turn a profit and many times bumps the investor out of the game with a huge loss. Much like some people buying distressed domains + website projects, thinking they will revamp the back end, add features, give it a new paint-job and resell it for a profit, just end up stuck with it, breaking even or at a loss.

Blank canvas digital assets (Domain names) can also be a relative gamble to undeveloped real-property (1 to 5 acre plots). You get into it for a good deal and then play the sit and wait game, hoping others will start to develop first, so you don't have to take the more expensive gamble. Then you cross your fingers and hope their developments raise the land value assessment on neighboring plots. The more that gets developed, the higher the other plots potential value rises.

Then its just a matter of when to flip it, before the current developments start to crash in value due to bad neighbors trashing the place, lack of tourism, or lack of resources to draw in residents. After all, no commercial business is going to want a spot where there are no customers... (Unless it's an industrial development), but even then, there needs to be potential workers within 50 miles to employ and operate the business).

When the wait is really long, some flip fast in an aftermarket, like domains to let someone else hold it a while until the time is right (If it's ever right).

So, ya.... a combination of both... in my opinion...

Yep, I’m with you on that, Eric. Winning the table isn’t just about the cards and your skills and a bit of luck matter just as much.

Hi

hey, a eye, can you think of another question that i can post in general discussion section

like does the world need more domains or not?


imo…..

Yeah, I’m aware of AI’s limitations too. That’s exactly why I ask questions here because curiosity about the industry feels better satisfied by real people, not just AI.
And if my curiosity comes off a bit too strong and ends up bothering you, my apologies, Biggie.

Any success?

I think that once you buy based on real demand rather than adrenaline, it stops feeling like gambling, right?

"Luck" is when opportunity meets preparation.

Sure, it shapes which opportunities even show up for you in this market.

Domaining is closer to a wife because you never know what will happen after you bought it.

You bought a what?
Wait, hang on… where are we again?

 

[Vertibox]

Both have both elements.

There isn't any real estate or land you can buy that is a sure fire way to make you decent money. If there is, the cost will be prohibitively high.

The same is true for domains, with the exception that if you got to buy short, one word dictionary words and short phrases in the early years, for relatively low cost, you would now have a bunch of domains, each worth high 6 figures and into 7 figures and beyond.

But now that those days are long over, buying valuable domains are out of reach for 99% of people who focus on this to make a living or as a side hustle.
Therefore, they have to look at creating names that have much less appeal than the most desirable names, but which would still attract buyers if priced right, because those buyers also can't afford 6-7 figure domain names, unless they are large corporations with many millions sloshing around to play with.

This then is the gamble for domain name investors and it has been so for at least the last 20 years. And its not going to get any better either and this game will become unviable for any newcomers very soon.

 

[Vertibox]

It is definitely not real estate because there is no inherent value.

There is no inherent value in anything.because value in an imaginary thing. So whether it's a physical thing or a virtual thing, the same applies.
Just look at stuff that suddenly loses value, or gains value, quickly. It's all perception/belief/feelings, which are all in the mind.

 

[nicenic]

Both have both elements.

There isn't any real estate or land you can buy that is a sure fire way to make you decent money. If there is, the cost will be prohibitively high.

The same is true for domains, with the exception that if you got to buy short, one word dictionary words and short phrases in the early years, for relatively low cost, you would now have a bunch of domains, each worth high 6 figures and into 7 figures and beyond.

But now that those days are long over, buying valuable domains are out of reach for 99% of people who focus on this to make a living or as a side hustle.
Therefore, they have to look at creating names that have much less appeal than the most desirable names, but which would still attract buyers if priced right, because those buyers also can't afford 6-7 figure domain names, unless they are large corporations with many millions sloshing around to play with.

This then is the gamble for domain name investors and it has been so for at least the last 20 years. And its not going to get any better either and this game will become unviable for any newcomers very soon.

And along with perception, evolving use-cases also play a quiet role in how value forms.

It is definitely not real estate because there is no inherent value. Domaining is gambling because you are staking wealth on an uncertain outcome. It is forbidden is all major religions.

What’s interesting is how often simple strings gain value once real-world use enters the picture.

 

[enterscope]

I'd say Domains are a cross between real estate and crypto.

 

[nicenic]

I'd say Domains are a cross between real estate and crypto.

That hybrid view fits, enterscope.

Domains mix scarcity like real estate with volatility driven by narrative and adoption.

 

[xwat]

English isn’t our first language, so we need AI to keep the conversation smooth.

OUR? Are you part of a Collective or hive mind? Do you have multiple personality disorder?