Advice for New Domain Investors
When it comes to domain investing, there are relatively few barriers to entry. All it takes is around $10 and a credit card or Paypal account, and a person can consider himself or herself a domain investor. Compared to investing in physical real estate or the stock market, the cost of entry into this business is very low.
One thing I’ve noticed is that people tend to not just buy one or two domain names when they are starting out. I’ve noticed that people seem to spend hundreds or thousands of dollars on hand registered domain names without much experience. Chances are good that this will make the domain registrar rich rather than the domain investor.
My advice is pretty simple. If you or someone you know is exploring the domain name investment space looking for opportunity, spend time doing research before buying. Spend some time looking at DN Journal and NameBio to see what is selling and for what price. Look through the domain forums like DN Forum and NamePros to see what people are discussing.
With the new gTLDs coming out within the year, I predict we are going to see hundreds or even thousands of speculators spending millions of dollars on new domain names. Many people will think they’re going to strike it rich with their investments. Most probably won’t do much research on domain investing. There are going to be people who lose a lot of money.
My advice is pretty simple but important. Do your research before spending your hard earned money on domain investments. Yes, there are relatively few barriers to entry when it comes to investing, but as countless people will tell you, there is a steep learning curve to profitably investing in domain names, and learning all about the business of domain investing before spending money is a good way to flatten the curve.
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