Pros and cons of domaining

[AbdulBasit.com]

Hello everyone,

As of today I’ve just reached the portfolio of 8,000 domains. This is something very special because all of my domains are very selectively acquired with no hand registrations.

Today I wanted to share some of the pros and cons of domaining I’ve witnessed and can recall as of now. I’m sure there are many more which you would like to add.

Before I share the pros/cons, I would like to inform all my readers and friends that recently I’ve relocated to Turkey with my family. I’m sure some of you know that I moved and lived in beautiful Malaysia for two years and enjoyed every moment there. But due to some reasons, I had to move back to Pakistan temporarily before I moved to Turkey. If there is anyone residing in Turkey, feel free to get in touch with me as I would love to connect with like-minded people and possibly meet in-person as well.

Coming back to the post, let me share some of the pros of domaining:

1. You can work from anywhere and anytime and do anything you want in your spare time.
2. You’re your own boss.
3. The ROI is remarkable and unachievable compared to most if not all existing businesses.
4. Entry barrier is still low.
5. Domain renewal cost is very low compared to physical property or any other business expenses.
6. Have your virtual store open 24 hours no matter what.

Cons of domaining:

1. The biggest disadvantage I find is the illiquidity. You never know when the domain will sell.
2. There is no accurate way to evaluate domains. You learn with your own and other’s experience, past relevant sales, etc.
3. Fierce competition than ever before.
4. 5-10 domains won’t start your business engine. One must buy a few hundred if the target is to do full time domaining.

Feel free to share any other pros and/or cons you would like to add. Also if someone is living in Turkey and would like to connect with me, just get in touch.

 

[AbdulBasit.com]

I wonder why any name sells for >5k if you are somebody and nothing sells (even top names) if you are nobody.

Since all the domains are unique, buyers are different, timing matters, budget, pricing of a domain, need, demand, etc. There are several factors involved.

Just take my example... the best month of the last year in sales was December 2021. And this year, the worst month of 2022 is December. Even after adding 1,500 around domains in a year period! There will always be inconsistency of sales... Just need to keep building your portfolio to reduce the inconsistencies in your way.

Good luck!

 

[NameInbox]

There are several factors involved.

Agree with @AbdulBasit.com
too much factors involved, also global like:
World Economy + Covid + new trends ...

 

[twiki]

Since all the domains are unique, buyers are different, timing matters, budget, pricing of a domain, need, demand, etc. There are several factors involved.

Just take my example... the best month of the last year in sales was December 2021. And this year, the worst month of 2022 is December. Even after adding 1,500 around domains in a year period! There will always be inconsistency of sales... Just need to keep building your portfolio to reduce the inconsistencies in your way.

Good luck!

My December was great.

September and October were awful.

Domaining is about patience. We need not jump into conclusions fast.

 

[domainer111]

Hello everyone,

As of today I’ve just reached the portfolio of 8,000 domains. This is something very special because all of my domains are very selectively acquired with no hand registrations.

Today I wanted to share some of the pros and cons of domaining I’ve witnessed and can recall as of now. I’m sure there are many more which you would like to add.

Before I share the pros/cons, I would like to inform all my readers and friends that recently I’ve relocated to Turkey with my family. I’m sure some of you know that I moved and lived in beautiful Malaysia for two years and enjoyed every moment there. But due to some reasons, I had to move back to Pakistan temporarily before I moved to Turkey. If there is anyone residing in Turkey, feel free to get in touch with me as I would love to connect with like-minded people and possibly meet in-person as well.

Coming back to the post, let me share some of the pros of domaining:

1. You can work from anywhere and anytime and do anything you want in your spare time.
2. You’re your own boss.
3. The ROI is remarkable and unachievable compared to most if not all existing businesses.
4. Entry barrier is still low.
5. Domain renewal cost is very low compared to physical property or any other business expenses.
6. Have your virtual store open 24 hours no matter what.

Cons of domaining:

1. The biggest disadvantage I find is the illiquidity. You never know when the domain will sell.
2. There is no accurate way to evaluate domains. You learn with your own and other’s experience, past relevant sales, etc.
3. Fierce competition than ever before.
4. 5-10 domains won’t start your business engine. One must buy a few hundred if the target is to do full time domaining.

Feel free to share any other pros and/or cons you would like to add. Also if someone is living in Turkey and would like to connect with me, just get in touch.

Congrats Abdul on your milestone! Wishing you all the best for Turkey.

I would add this advantage:

Domainers work, and the result is an asset or investment. This is not to be underestimated.

Most people work very hard with very little cash left over. They mostly dont leave work with assets to their name. Even accountants and lawyers slave away, with the only asset a cash investment in some sort of ponzi.

I would add this disadvantage to volume domaining:

Be prepared for volume domaining to come to an abrupt end at any time through regulation. It might not be viable to maintain a portfolio if the renewal is like 200 bucks or something. Possibly renew ten years out your best names. So if the proverbial hits the fan, you will have ten years with your best.

 

[AbdulBasit.com]

Congrats Abdul on your milestone! Wishing you all the best for Turkey.

I would add this advantage:

Domainers work, and the result is an asset or investment. This is not to be underestimated.

Most people work very hard with very little cash left over. They mostly dont leave work with assets to their name. Even accountants and lawyers slave away, with the only asset a cash investment in some sort of ponzi.

I would add this disadvantage to volume domaining:

Be prepared for volume domaining to come to an abrupt end at any time through regulation. It might not be viable to maintain a portfolio if the renewal is like 200 bucks or something. Possibly renew ten years out your best names. So if the proverbial hits the fan, you will have ten years with your best.

Thanks for sharing your valuable points and well wishes!

The disadvantage you mentioned is that if it's going to happen, it will not happen anytime soon. Also it's good advice to renew your best domains for a maximum period of 10 years but someone having thousands of great domains cannot renew for 10 years. But yeah, it's good to renew your best domains for as maximum as one can do it.

 

[DomainNature]

I have realized that I made a mistake when I have renewed my domains for more years in front, the thing is I could have opened a deposit with those money, the income which I would have made would have allowed me to renew all domains each year Plus have for spending, later I also realized that I should have not renewed some domains at max.
That is why out-weight all the possibilities and don't rush renewing all domains at max, because there is a possibility that those domains may never sell.

 

[domainer111]

Thanks for sharing your valuable points and well wishes!

The disadvantage you mentioned is that if it's going to happen, it will not happen anytime soon. Also it's good advice to renew your best domains for a maximum period of 10 years but someone having thousands of great domains cannot renew for 10 years. But yeah, it's good to renew your best domains for as maximum as one can do it.

Yes agreed. Plus of course Godaddy have such a huge portfolio, and of course HD, you could expect serious resistance to such a move. An interesting corporate/lobbying battle here. Hopefully Verisign will chill.

There is another possibility of course, and that is the monopoly in ended and the wholesale cost is slashed. An outside horse in the race - but I would keep all those lists :D

 

[domainer111]

I have realized that I made a mistake when I have renewed my domains for more years in front, the thing is I could have opened a deposit with those money, the income which I would have made would have allowed me to renew all domains each year Plus have for spending, later I also realized that I should have not renewed some domains at max.
That is why out-weight all the possibilities and don't rush renewing all domains at max, because there is a possibility that those domains may never sell.

Yes just the best 10% or so for this? It depends on the portfolio. With volume domaining it's not good as the names you sell, you have unneceassarily renewed.

 

[AbdulBasit.com]

I have realized that I made a mistake when I have renewed my domains for more years in front, the thing is I could have opened a deposit with those money, the income which I would have made would have allowed me to renew all domains each year Plus have for spending, later I also realized that I should have not renewed some domains at max.
That is why out-weight all the possibilities and don't rush renewing all domains at max, because there is a possibility that those domains may never sell.

I've a different thought process on renewing domains in advance... You may want to read this https://www.abdulbasit.com/domaining/why-you-should-renew-domains-in-advance and share your thoughts on it.
Thanks!

 

[robert widener]

Great Thread