Question from a novice

[The Animal]

Hello

I've only just registered here and I'm new to all of this domain buying and selling business. I would like to ask few questions before I start registerating domains, so I apologise if I ask really stupid questions.

I hope someone would be kind enough to answer some of these questions for me -

1. When I told a friend that domain business would be a good way of earning money, potentially even life changing, he poured cold water on the idea saying all the good domains ideas are taken and that getting rich in this business is even less chance of winning the lottery? Is this true? What's your opinion about this?

2.How do I sell a domain? Can I sell a domain a day after I register it? Or do I need to wait x amount of time before it gets recognised by search engines, etc? Does it matter to the buyer how new the domain is?

3. Is the key to success in domain buying and selling is simply having a URL name that somebody else would want?

4.who determines the price?

5. What is parking a domain? Does it have to be done? What are the advantages and disadvantages?

Okay, I think that's about it for now. It would be greatly appreciated if someone could help me here.

Cheers.

 

[Kate]

Welcome to the forum.

1. When I told a friend that domain business would be a good way of earning money, potentially even life changing, he poured cold water on the idea saying all the good domains ideas are taken and that getting rich in this business is even less chance of winning the lottery? Is this true? What's your opinion about this?

I think your friend spoke wise words. In fact most domainers are losing money. A tiny minority are making money, possibly a living on domain names, but for the rest it's more like a hobby.

It's not easy to enter the game now that all the great domains are long gone. But there are opportunities every day. You have to do research and seize them. Also keep in mind that it takes money to make money.

Hint: the days of registering fresh domains belong to the past, today it's more about acquiring existing domains from various sources, so it's research + cash investment rather than mining for gold... still lots of coal left though

2.How do I sell a domain? Can I sell a domain a day after I register it? Or do I need to wait x amount of time before it gets recognised by search engines, etc? Does it matter to the buyer how new the domain is?

In theory you can sell it straight away. Depending on the extension it may have to remain with the original registrar for a certain time (60 days-). But a domain can typically be used within minutes of registration.

3. Is the key to success in domain buying and selling is simply having a URL name that somebody else would want?

Pretty much yes. People need a good reason for buying a domain, very difficult to sell stuff that people don't need/want.

4.who determines the price?

Buyer and seller. Supply and demand. If you have great names you will normally receive unsolicited offers on a regular basis, then you can afford to hold out for the right offer, or drive potential buyers into a bidding war. It boils down to negotiation skills and how badly the other party needs the domain and the budget they can afford.
Be realistic: few domains will ever sell for 6 figures. The sweet spot is more in the low $,$$$ range, that is within the range of small businesses.

Just spend some time perusing the forum and you'll see what it's really like :gl:

 

[The Animal]

Thank you for your replies, friend.

I've also got few more questions that I have come-up with.


6.Do I need to "lock" my domain?

7. What is the minimum options I should get, when buying a domain, to make it legally all mine?

8. Does it matter for how little you buy the domain for? I mean is more expensive the better?

In fact most domainers are losing money

Are you talking about prolific domainers that spend hundreds of pounds on domains? If so, that won't be my strategy.

I would only be buying probably 3-4 domains at a time, if they're not sold within a year, I'd probably no renenw. (therefore my losses are at a minimum.)

 

[holyroller]

Are you talking about prolific domainers that spend hundreds of pounds on domains? If so, that won't be my strategy.

I would only be buying probably 3-4 domains at a time, if they're not sold within a year, I'd probably no renenw. (therefore my losses are at a minimum.)

Probably this is more your average domainer who will basically spend more on renewing all their domains than they actually sell. If you own hundreds of domains, its going to cost you thousands of dollars every year to renew.

As with any investment be it domains, stock, currency, commodities. The vast majority of people will lose money, while the top 10% will reap all the rewards.

As mentioned above, do your research. Reading the forums here is a good start as there is loads of useful (and not so useful) information.

---------- Post added at 12:43 PM ---------- Previous post was at 12:43 PM ----------

I would only be buying probably 3-4 domains at a time, if they're not sold within a year, I'd probably no renenw. (therefore my losses are at a minimum.)

It depends how much you spend on these 3-4 domains.

 

[The Animal]

Thanks, i have come-up with a name that, in my opinion, has potential.

Could anyone advice me what's the best domain host to join?

thank you.

 

[baseballworld]

I dunno really. If you can get some good domains and ad placement is right on your site. without search engine optimization even yet you can make more then registration fee back just by doing a little bit of ad marketing. most my domains once I finally develop them make there registration cost back and then some first month in adsense revenue.

 

[The Animal]

Another question, please -

If I buy a dot com, do I need to buy most of the rest? ( dot net, dot uk, etc)

 

[Kate]

If I buy a dot com, do I need to buy most of the rest? ( dot net, dot uk, etc)

It all depends on what you want to do with the domain name. If you are going to develop it (be the end user), you might to do defensive registrations, also in country domain extensions if you plan to do business internationally.

For the purpose of resale you normally want .com or the ccTLD that is relevant to the target end user like .co.uk for UK businesses.

 

[Sabre]

Thanks, i have come-up with a name that, in my opinion, has potential.

Could anyone advice me what's the best domain host to join?

thank you.

If you want, you can private message me and I'll tell you whether your domain idea has any potential. I don't have any interest in registering new domains so I won't steal your idea, don't worry.

 

[The Animal]

Erm, I have another query -

Do I need a whoip? I mean, if there a whoip protecting my information, would a potential buyer of my domain not be able to contact me?

---------- Post added at 09:04 PM ---------- Previous post was at 07:34 PM ----------

I'm just in the process of buying my first domain now, but it is asking me whether I want to buy "Domain privacy".

Do I really need this? (money is a bit tight) Would it hinder my chances of a potential dealer contacting me?

a quick answer would greatly be appreciated!

 

[JB Lions]

No, you don't need it. And you'll have some people using the whois information to contact the owner possibly to buy, so having it private would hinder those chances.

 

[The Animal]

what about identity theft and all of that? (cold calls, etc)

 

[RazorNF]

Some registrars with whois privacy just have a generic default email that goes nowhere.

And for those that forward emails, some are either blacklisted by spam blockers, or just don't work half the time (moniker).

So yes it can lessen your chance for contact by a potential buyer.

On the other hand, you may not wish your personal phone#/address published and archived forever on the web...

 

[JB Lions]

what about identity theft and all of that? (cold calls, etc)

Never have had any issues. Never bought privacy in my life and the first domain I ever bought was 11 years ago. Really the information there, name, address, phone number, same stuff you can find many places online, don't even need a domain for that info to be out there. Maybe if it's a domain where you're going to build a site and have no interest selling, maybe. But if you want to sell, having it private hurts those chances. And understand, those domain registrars are wanting to sell that to you, so they might hype some problems up a little. They want to upsell you as much as they can, that's where a lot of the money is for them.