Newbie domain investor questions...

[DigitalDeepak.com]

Some newbie questions!

I have sold a few premium names before but it was more of dumb luck than a deliberate strategy. i bought some names for end use and then sold it off.

But now i am getting ready to become a serious investor. i save a few hundred dollars every month from my day job and i think investing in domains carefully is a good way to multiply my money.

Here are some questions in my mind. you can answer them, or point me to a place where i can find some answers...

So from what i have seen, domain name business contains 2 parts.

1. Registering / acquiring names

• I think, Buying domain names as premium from the domain name after market is not a good strategy for a domainer who just wants to make money selling domain names. premium names selling above $500, is mostly for end users. Am i right? or is there a good scope in buying premium names and selling it for a profit?
• If i have to hand reg good domain names, what is the best strategy to go about it? should i go for expired names more or buy new ones. what strategy should i follow? what tools should i use to find available names? what kind of 2 and 3 word combinations to register?
• How long should i hold the names if the domains do not sell? for example, i registered some names in 2006 thinking they were great names and would sell for great premium in the future. now after joining this forum, i can see that they are not worth any more than mid $xx and i have got rid of them selling at low auction prices.

2. Marketing & selling names

• As far as i have learned. (a) the whois data should be open, (b) the domain has to be listed in as many places as possible and (c) it helps to have a landing page. but apart from this what else can be done to push the names we own.

thanks in advance! eager to learn.

 

[Name Trader]

1.
There is good scope in buying Premium Domains and selling them for a profit. Probably much better scope than buying non-Premium Domains. You have to find the value in underpriced domains.

I think it is extremely unlikely that you can hand-register good quality domains, consistently, if at all. Most of the expired domains are crap too. Competition for any quality expiring domains is at an all-time high. And probably will get a lot worse before it crashes.

How long should you hold a domain which doesn't sell is like asking how long is a piece of string. You have to actively market your domains, and not be a passive seller. A passive seller, usually sells between 1-5% of their portfolio every year. Of course, YMMV. But if you have actively tried to sell the domain without success, then maybe 2-3 years for reg fee domains, 5 years for high $xxx purchased domains, and maybe never for domains you've paid $10k for. A lot depends on your risk profile. There are no hard 'n fast rules.

2.
As I've said in 1. You need to actively seek out end users for your domains. Not be only a passive seller.

 

[Hypersot]

So, ..what is Premium exactly?

 

[Name Trader]

I would guess he's talking about 1 or 2 word dictionary domains which make sense and would be attractive for business use. No hyphens or numbers. At least that was the context in which I replied.

 

[Nerevar]

The main problem is that one needs to know and feel domains before investing large sums in them. And it is very hard (probably impossible) to build your understanding of domains without actually dealing in them for a few years. It is just like any other field of knowledge and investment - no miracles, only hard work. That is why it might be wise to buy some cheaper domains at first, even handregs, in order to learn the industry and build your understanding of the reseller prices gradually. However, the big money is of course in the more expensive flips.

 

[Billy Bradley]

I am just a newbie like you but what I can suggest you is to look for cheap domains buying instead of any premium or that sort since most majority is interested in getting cheap domains so if you want to get money from domains this is the easy way to start and then once you start getting settle you can look for more complicated way.

 

[iAchilles]

Would I be right in saying eBay tends to offer good value for premium domains, in terms of finding them under priced? I've been going through completed listings and one sale in particular grabbed my attention - wine .com which sold for just over 1k. Seems very cheap to my untrained eye.

I'm just starting out and I'll be following Nerevar's advice, start small and learn to value and appraise through sales. I think the risk of running a loss is far too high as a beginner imho.

 

[iowadawg]

I doubt you found the REAL wine.com on ebay!
Been a site for 15 years or so.
Must of found a mispelt word, or one with a number (like w1ne.com).
Continue searching ebay, but damn, do read the descriptions, etc.

 

[iAchilles]

I doubt you found the REAL wine.com on ebay!
Been a site for 15 years or so.
Must of found a mispelt word, or one with a number (like w1ne.com).
Continue searching ebay, but damn, do read the descriptions, etc.

Must have been a scam auction then. I never bothered to check, but my overall impression was the market value seemed far lower compared to other places. I have a seller account on ebay with over 7k positive feedback dating back since 1998, so I'm no eBay fool. I do appreciate the advice though.

I was considering listing domains and I quickly changed my mind based on completed/sold listings. As a buyer, it seems far more attractive, but then that has pretty much always been the case with eBay, it's a buyers market.

I can't post links but it was definitely Wine.com. Have a look at sold auctions under domains.

EDIT...

Just had a look at it again, talk about shady seller tactics...

WINE .com - LLLL 4 Letter Domain - Premium Business Domain (CVCV.COM)

 

[iowadawg]

Again, ebay has sellers who do like to stretch the truth!
wine.com
4 Letter IDN Domain name

Why it pays to read the description, etc.
At the very least, contact seller for the truth.

 

[iAchilles]

Again, ebay has sellers who do like to stretch the truth!
wine.com
4 Letter IDN Domain name

Why it pays to read the description, etc.
At the very least, contact seller for the truth.

Absolutely, I just breezed through sold auctions and that one grabbed my eye. It reminds me of the xbox box sales that were doing the rounds at one stage, and probably still are.