10 Hard-Hitting Ideas About the Difficult Business of Domain Name Investing (Domaining)
Question: Is it really profitable to buy up domain names in hopes that someone will one day want to pay for that domain name?
Answer: If you are committed to learning, and you have a skill at choosing names that can sell, then you may become successful in this business. Nevertheless, be aware that selling domain names is a very difficult business. Here are ten ideas about “domaining” — the business of buying and selling domain names.
- Investing in domain names is similar to investing in the stock market: You could make money, or you could lose money.
- The harder you work to learn, the better chances you have of making money.
- Beware of scams. Scams in the domaining world are subtle, costly, and everywhere.
- Take advantage of the excellent resources for learning, such as Domain Sherpa (their weekly video interview), and Domain Name Journal, and Domain Name Wire.
- Expect to lose money during your first year in this business.
- To be successful in this business, you must learn the art of choosing domain names that can sell. Buy domain names about subjects that you know well, so that you will understand the importance of the domain name.
- Do not price your domain names too high, or else they will never be sold.
- Always use a reliable escrow company, it protects the seller and the buyer.
- Test the waters by buying a few good names from a domain name registrar at the original prices, and then try to sell these names at Sedo .com — which is now offering “free listings”.
- Ask yourself: “Is this the kind of work I will enjoy doing?” … If the answer is “Yes,” then you have much greater chances for success.