How do I Get Started Domaining?
January 22nd, 2008
If you are going to find success domaining, the best way to get started is spend 10-20 hours just studying domaining. The best thing you can do is study what prices domains are being bought and sold for and try to figure out why they are selling for that price. This is crucial to get figured out early so that you aren’t wasting money on a bunch of domains that are barely worth the registration fee. If you invest to much money into worthless domains you will quickly become discouraged and give up before you really gave it a chance.The next thing you need to do is monitor trends. When new products are released such as a new vehicle or popular toy, there is a very limited time frame before the good domains disappear that are associated with that product. If you can get a few good ones, you can make some good money. You’ll also want to avoid getting to much into speculative extensions until you’ve built up a portfolio and have some regular income being generated.
Once you’ve sold a few domains that you acquired via domain registration, and you feel confident that you understand this part of domaining, you are then ready to move to the next level, which is purchasing established domain names. I wouldn’t invest more than that on any single domain until you are comfortable at this level and your income is washing with your debt. Early on, you will probably want to only spend $1,000.00 or less per dot com domain and branch a little bit into dot net and dot org domains. You may also buy a few domains that have hyphens in them. Once you’ve built up a portfolio, made some profit, and stored up some equity, you can then move to the high roller level.
High rollers are people that domain for a living. If you make it to this level, you’ll want to focus on speculative dot com domains and also move beyond dot com and dot net domains a little bit, shifting your focus on dot info domains and other domains at that level.
It is important to keep in mind that dot com domains are the most valuable to other people, but are not any better than a dot biz or dot info domain as far as search engines are concerned.
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See, I’d be fearful of domaining because it’s hard to tell the intrinsic value of a particular domain. It’s the same reason I’m leery of real estate investing – no one really knows what it’s worth. If you overpay, you could be stuck taking a big loss.
@ Llama – Yes, there is definitely a risk involved, though it is much less risk than Real Estate. The thing I’ve found is that you may find a gem in every 10 domains you get, but you’ll get a ton of money from that one domain name.
When I started domaining, I bought about 20 domains at $7.00 each, then sold 5 of them for about $400.00, so the rest are just sitting in my profile for free basically maturing and if I find a buyer for them, that money is pure profit as well. Cycle this a couple of times and next thing you know you’ve got 100 domains that were all paid for through domaining profits.
It takes a LOT of practice and a lot of study/reading of what domains are selling for, what trends are, etc.
Not really much room for “amateur” domainers then, I guess. I’ll have to sit this out for awhile until I have the time to study up and learn the market better.
Though waiting seems foolish, since domains will be harder and harder to get, and more costly as time goes on. Catch-22!
Yeah, once gone, they are gone for good. Low letter domains are doubling in value every year and now 3-word domains are quickly disappearing.
I understand the hesitation. I got started because I purchased a bunch of domains to develop, then decided I didn’t have the time so I tried to sell them and saw how much profit I made. Bought a few more and sold some of them, etc.
It is something I do part time as more of an investment in my future rather than to make money now. I generally re-invest most (if not all) of my profits.