advice The hard-learned lessons of a domain investor

[News]

18 lessons . . . learned through domain investment, and I list them here to share with you.

1. Money in the bank is more reliable than in your registrar's account.
2. Investment is planned but speculation is impulsive.
3. Priority 1: .com > .cn > .com.cn > .net. Priority 2: Acronym (up to 4L) >= Pinyin (2-pin) > number. For numbers, 4N or less are solid but 5N names do not have many end users.
4. Domain names can only be sold to either end users or domain investors who eventually will sell to end users. If no domain investor wants your domain name, then that also means there will not be end users for your domain name.
5. You pay a "tuition" at the beginning of your investment life to learn because you have experience, no good training, or no master to teach you.
6. Stay away from speculation!
7. Only one type of people can speculate: the big players.
8. Domain names are like antiques. It takes time for value to increase. Do not expect to get return to your investment within three years, regardless of how good the quality of your domain name is.
9. Don't buy stolen domain names or those that are clearly way under their market values.
10. Do not borrow money to invest in domain names. Using money you've earned will help you learn how to invest and make a profit.
11. Selling domain names to end users is an art, and selling domain names to investors is a business. Art is harder to master.
12. Market prices are good only when you buy or when you must sell urgently. Ignore them after you own the domain names.
13. Do not believe the headline news. Instead, develop your analytical ability.
14. Do not take it lightly when acquiring a domain name that matches a brand. You may lose both your money and the domain name.
15. Have a plan to lower risks when managing your profit: cash out, reinvest, or diversity.
16. Domain investment is about constantly getting rid of lesser quality names and upgrading to better names.

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[deez007]

Some good points there....

 

[Doron Vermaat]

This is a really good read and I agree with pretty much all of these tips, especially 16. Thanks for sharing @Kassey Lee

 

[Hypersot]

Wow... (11) just sold me

lots of excellent advice... thank you!

 

[RU]

i disagree with #4 Domain names can only be sold to either end users or domain investors who eventually will sell to end users. If no domain investor wants your domain name, then that also means there will not be end users for your domain name.

 

[baseballworld]

If I only had a penny for every time I proved number 8 wrong.

 

[WatchDogue]

I keep trying to disprove Number 6 and in part Number 7 - on a small scale I keep " speculating " on niche market new gTLDs.