My friend, the wannabe domain investor...

[Keith]

I sometimes tell my friend about domaining...sales, acquisitions, and so on. He says he wants to invest and I always tell him to refrain. It's a sure way to lose money!

It took me 4 or 5 years just to understand what a good domain was. Aside from a good .com domain, it's the art of pairing a keyword with the right extension when .com is out of reach. Now we are on the verge of loads of new tlds. For newbies it's bad news to invest. They're better off buying a lottery ticket IMO.

How would you advise your friends or family if they wanted to learn the domain game? To me, you're damned if you do, damned if you don't :P

 

[.NJ]

How would you advise your friends or family if they wanted to learn the domain game?

Start a reseller account and advise them to buy their domains there.

But seriously, I agree.

There is money to be made (for a small group), but there is alot more money to be lost.

Most domain registers laugh their way all the way to the bank.

And they laugh at the expense of the all the new and existing domainers.

Business is business.

 

[FPForum]

I guess it would depend on what kind of "investing" we were talking about. Shelling out thousands for one-word "real" premium .COM's or shelling out $XX on the forums and on expiring domain auctions..

There is money to be made and I think it really comes down to how much money you have invested in a name...If your friend is thinking about taking $1000 and surfing for good deals on auction sites and forums then he should be able to make a return on his money if he is willing to do small quick flips for a few hundred dollars profit on each domain. If he is thinks that he can shell out $10k for a premium .COM today and then flip it tomorrow or next week for double that I would say his head is probably in the clouds and to consider investing his money elsewhere.

 

[alien51]

How would you advise your friends or family if they wanted to learn the domain game? To me, you're damned if you do, damned if you don't :P

My advise would be: KEEP YOUR DAY JOB.

If you have a day job, you will have money to sustain your domain speculation. Many people who have day jobs, can afford to set aside money to buy cigarettes, liquor, or marijuana. Instead of paying for those, you can use the money for domain renewals instead.

 

[hopkism]

I guess it would depend on what kind of "investing" we were talking about. Shelling out thousands for one-word "real" premium .COM's or shelling out $XX on the forums and on expiring domain auctions..

I think either one could work but, requires a certain bit of knowledge, experience and salesmanship.

I certainly have no experience with x,xxx names. However I do make a nice bit of extra cash registering $1 .coms (when the code is available) and selling for $20 a pop.

To the OP... I would remind your friend that all investments carry a level of risk. During the recession a lot of people's 401k's which, were loaded with "low risk" ETFs and dividend paying blue chips, tanked big time. Retirements were put on hold and savings lost.

I would advise, if they are still stuck on the idea to buy a name that they can relate to, something they are passionate about or have expertise in. That would give them a leg up when it comes to development or marketing for resale. However, there is little room for teaching pricing...

One of the worst decisions an investor can make is to get emotional. In domaining that is very easy to do..

 

[alien51]

If you don't want to touch your day job salary to pay for your speculation games, what you need is an alternative CASH COW.

Remember that a lot more people, are looking for CONTENT, than they are looking for domains to buy. You can engage in content development on just a few domains you own. Generate sustainable income from these developed domains, and use it as a CASH COW to fund your domain speculation sideline.

They didn't call it "speculation" if you are sure as hell your domain will sell. Your CASH COW serves as your hedge, in case your American Dream of selling your domain for 6-figures will drag on for decades with no buyer.

 

[Keith]

It's tough to give a newbie advice.

Hand registering a domain to flip is hard enough when you have years of experience. Next to impossible if you're just starting out. Spending $xxx or $xxxx on the aftermarket can be a great bet when you have the eye to spot a deal. Unfortunately for newbies, they have no clue how to tell a $x domain from a $xxxx in most cases.

It's a complicated little business we're in :imho: