I try to pick names that I can envision a specific use for and that use has to be valuable to the right person using a viable business model.
I would also keep the definition of a "winner" in the appropriate context. I feel like some of the winners I picked in 2007 are still "winners", but remain unsold "winners". Domain investing takes years, and sometimes over a decade of patience for a particular domain.
All domains are unique, but what gives domains value is the demand. That demand has to be useful by an industry or business model that has proven it can make money. If it cannot make money for a business/person, the value is limited.
I sold PlanToGrow(dot)com in March for $24,500. I paid $19.47 for it 4 years earlier. There wasn't any demand when I purchased it, and no notable sites, but I could envision it for a marketing campaign or an organization.
This was speculation in a
Lower Demand Domain, but I've gotten to be pretty good at my speculation over the years.
Compare that to MetroAutoSales.com(dot)com that I purchased via Auction in May for $740. If you do a search for Metro Auto Sales on Google, there are a ton of results from actual car dealerships. These businesses have an inventory of cars that are valued at $200k to over $500k (ex. 40 cars x $10,000 each). A business like this potentially spends a lot on marketing and when comparing it to the products they sell, buying a domain for $30k is not a big deal. This is an
investment in a
Proven Business Name.
So when buying a domain you are either a
speculator buying
lower demand names or an
investment analyst buying
proven business names. If you're speculating, you better have a knack for it, or work at improving it by paying attention to business names and advertising trends. If you don't have skills in that area, you can focus on investing in
proven business names. It is much easier to determine a value for a proven business name. Just look at the current businesses, determine what the best version of that business would look like, and price accordingly (similar to what I did for MetroAutoSales above). Come up with some simple numbers in a spreadsheet. A good example I've used in the past is my domain ASliceAbove(dot)com. To single pizza restaurant with this name, the domain may be worth $1,750, but to a chain with 10-15 locations, it could be worth $20k or much more.
Two Generalized Types of
Successful Domain Investing
- Speculation of Lower Demand Domains - Domains where the use of the term is widespread and obvious (or looks good as a brandable), but there is little or no current use. No businesses with significant earnings are using the phrase. (example PlanToGrow(dot)com)
- Investment in Proven Business Names - Domains where there is at least some significant use in commerce. (example MetroAutoSales(dot)com)
If you are starting out, and trying to keep costs down, a good place to begin is in the gray area between these two. Find domains that match 1 or 2 current businesses that are really small but growing.
When there is zero current use for a domain, or very low use, you need to be very realistic with yourself, and good at determining the likelihood that someone will use this domain for a commercially viable purpose in the future.
I think the key to ensuring success for anything is to ask yourself deep questions, and answer them realistically. What would the website look like? What type of business model would it be? How much would the business make off of each purchase? How many sales could the business make each month? That's what gives a domain value. It can't be an abstract business model either, it needs to be something that exists or is expected to exist in the next x number of years.
I think Rick said it best a couple months ago when he defined the types of domains that exist, and they appear to be ordered from most valuable to least valuable. The ones below the white space would be generally considered to have little or no value.
Below is some basic advice I gave in the past on Domain Buying & Selling.
https://www.namepros.com/threads/wh...r-selling-domains.1129585/page-2#post-7194467
Here is prior post of mine on Selling and Domain Valuation
https://www.namepros.com/threads/my-biggest-sale-yet-24-5k.1182153/page-4#post-7696071
If you really want to ensure you are picking a "winner". Try to "talk yourself out of each purchase" as I mentioned in the post below.
Show attachment 163959
https://www.namepros.com/threads/i-...-org-artoflux-com.1187598/page-2#post-7761949
Abdul Basit also has some great guidelines on the details of valuing a domain below. If you value a domain when you buy it, that will give you the best indication on if you are buying a "winner" or not.
https://www.namepros.com/threads/how-do-i-valuate-domains-and-set-an-asking-price.951601/
Lastly, the main places that you are going to find domains is via the expired market. 60,000+ dropping each day. Use ExpiredDomains(dot)net and GoDaddy. But it won't be easy. You might only find 3-4 worth purchasing for every hour you search.