Domain name Investment: The DON’TS of domain name investing

in Domain Names Entrepreneurship Tech News by Francis Simisim — July 1, 2009 at 12:00 PM | 1 comment

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The Domain name business is a very tricky business with lots of do’s and don’ts, the biggest misconception in this business is that we could just sit down and wait for someone to buy the domain name from us at a high price. Problem is that nobody actually ‘just comes along and buys it off you’! Of course hardwork is involved and like other businesses, there are the do’s and don’ts. This article will be on DON’TS:

Don’t over invest / buy / register

– Domaining is a business –

Biggest problem I encountered as a domainer, when I was starting out, is overly buying or registering domain names that I have no plan or strategy on how I could monetize it. Sometimes it’s worth thinking about our budgets, could we afford to renew all our domain names in our portfolios? Domainers have this rule that don’t buy or register domain names for the purpose of only reselling at a later stage. Think about covering the renewal costs and the profits that your business should be making.

Don’t wait

– How long will you wait –

When I started my web 2.0 exploration, domain names were something that I wanted to get first. I did find the domain name that I wanted, but I hesitated at first thinking that there could be something else that is better. A few days passed, when I finally decided, it was already registered by someone else. When you find yourself a good domain name, don’t ever wait as someone else will beat you to it. Make sure to prepare to register a domain name once you do search for it.

Don’t fall in love

– It happens all the time… –

I call this one the Domainer’s disease, when we collect our domain names in our portfolios. We’ll end up falling in love with our domain names that we close the possibility of selling at low or mid price (we’re expecting millions!). We have to be more realistic and think about what we have (unless if it’s a short, popular and one dictionary word domain name then do wait for the millions). Rethink about liquidating some domain names and make a decent profit out of it.

Don’t forget Profit

– We all got bills to pay –

Domain name investment is actually an investment, so like other investments, think about returns or profit. It’s a business and it should support itself and the owner. Think about your expenses both in the business and personally, is it yielding enough profit for you to survive? I know it’s addictive and fun but don’t ever forget to make that profit in domaining.

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