snoop said:
I've already said it many times, there is no such thing as a "safe" "no risk" domain.
Secondly the last thing I am talking about is buying domains "that can be sold tomorrow at a profit". I'm telling people that model of trying to sell to another domainer for more is largely dead in the current market, look for revenue from outside this industry - traffic, endusers etc. Yes I know that is hard....good deals will not slap you in the face and most will not be able to do it, the success rate will be far better than those trying to flip 4 letter .net's though.
I think you shifted the topic again. This is not about selling inside or outside the industry. That's not the point we've been debating. And no one is complaining about having to work hard to succeed at domaining - that is a given. Disagreeing with you does not make someone lazy.
Your argument is that LLLL domains – high quality (premium, pronounceable) LLLL.nets and all LLLL.coms - are a bad investment choice because there is no good market for them now and there never will be. The market value, in general, will never exceed the cost ~ thus there is no profit in them. Is that not your argument?
Obviously no one here holds a domaining crystal ball. To say domains that have no value today will have no value in the future strikes me as a comment you probably regret, since almost all domain sales data would refute it. Niches that are not popular or highly valued one day become so the next. Predicting such trends is what investing is all about. It’s one way that people make money in this industry.
Plausible arguments based on actual analysis have been made many times before demonstrating that it is at least reasonable to expect that the ENDUSER market for LLLL domains will grow significantly over time (3 - 5 years). Models for how to financially sustain an investment in LLLL domains over this period have also been demonstrated. No need to repeat those points again here.
Conclusion: investing in LLLL domains (high quality nets and a mixture of cheaper/lower quality to more expensive/higher quality coms) as PART of one's portfolio is a reasonable domaining strategy. Individual domainers can choose whether or not it makes sense for them.
You also argue that there are safer investment opportunities in domaining, including traffic domains and domains with clear enduser appeal. It’s true - I see plenty of those types of domains selling for good money in major industry auctions and other sales venues. With the exception of dictionary word LLLLs, there are not as many LLLL domains in the same sales category.
But the fact that traffic/keyword domains garner a larger share of sales revenues doesn’t really mean they are a more reliable investment. This is because there are that many more domainers all competing for those same, presumably “safer,” sales slots. Greater competition usually means lower ROI and I suspect there are many investments in these niches that make very little or even lose money. So who knows how many domainers lose money or actually turn a buck pursuing the approach you recommend? Who knows if it is more or less than those who also invest in LLLL domains?
Since it is not self-evident, I asked you to support with data or at least concrete examples the claim you are making that your recommended approach is so vastly superior. So far you have not.
My belief, bottom line, is that you can make money domaining in a number of different ways. But you need to really know your niche and you need to know what you are doing. Also, like a good stock portfolio, you need to be diversified. If a domainer started out today with a limited budget (as most do), would he really be better served by channeling ALL his time and money into traffic and generic/keyword domains, as you recommend? Or, if he can afford the risk, does it stand as a reasonable choice to make LLLL domains a part of his portfolio?
I think the answer is clear.
That's all I have to say on the subject... Now back to your regular programming.
