Being a Domain Investor Can Help You Acquire a Domain Name
101 Domain

Being a Domain Investor Can Help You Acquire a Domain Name

21

I’ve found that many people don’t have an interest in selling their domain names to domain investors. Many seem to think they are either going to see their name re-sold for a huge profit or that they are getting a raw deal. I want to share some insight in when it might be advantageous to be a domain investor and how that can help you acquire a domain name.

More often than not, I buy domain names from people who have either never done anything with a particular domain name or have ceased operations on a domain name. These people tend to be happy to make money by selling names that aren’t making any money for them. Most don’t really care about the domain name after and are just happy to have made some cash for something that had basically been lying around.

On occasion, I will come across a domain name that is owned by a company in that particular field, but it is either not being used or it’s underutilized. These companies would be reluctant to sell their domain name to a direct competitor, as the money from the domain sale would pale in comparison to the potential lost business should the domain name be acquired and used by a competitor.

However, if they see that I am a domain investor, they might be more willing to let me buy it, knowing that I am probably not going to be able to directly compete with them. They may or may not realize that I will probably sell it down the road, but they aren’t dealing directly with a competing company that is going to put the name to good use.

The next time you are buying a domain name that is owned by a company that would be considered an end user, you might want to make it clear that you are a domain investor and not a competitor.


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


Reach out to Elliot: Twitter | | Facebook | Email

Comments (21)

    Tony

    Investors buy low and sell high. I find the part about companies not realizing you will sell it later and to a possible competitor at a profit hard to believe.

    April 13th, 2013 at 12:49 pm

      Elliot Silver

      I’ve done deals with companies who ask what I do and I tell them I am a domain investor / web developer. I can only assume if I was competing with them directly, they wouldn’t sell me their domain name knowing it can be used to strengthen a competitor.

      April 13th, 2013 at 12:53 pm

      BullS

      So what happens if you resell it to their competitors?

      Then you are a domainTraitor

      April 13th, 2013 at 1:19 pm

      BullS

      Not only you will be labeled as a domainTraitor, you will be sued and then go to jail—-all because of just making a buck on some silly domain names.

      GREED!!

      April 13th, 2013 at 1:56 pm

      Elliot Silver

      What in the world are you talking about?

      April 13th, 2013 at 1:57 pm

    todd

    If you make it clear to them that you are a domain investor then automatically they are going to value the name higher because an investor sees more value in it then they do and of course will equate to a higher purchase price or they will hold on to it thinking it has massive value.

    April 13th, 2013 at 1:26 pm

      Elliot Silver

      If they’ve been paying Net Sol $35/year for 15 years, they may think their $25,000 price is “massive” when I think it’s a great deal.

      April 13th, 2013 at 1:28 pm

    Tony

    I get asked the same thing regardless if it’s a company or individual owner. I tell them I’m an investor also but like Todd mentioned I don’t know if telling them you’re an investor is a good idea per se. They know investors buy low and sell high so the price you are paying for their domain is most likely less than what it should sell for.

    April 13th, 2013 at 1:32 pm

      Elliot Silver

      I think it depends on the circumstances. Sometimes being able to read a situation with limited information is what helps me close deals.

      April 13th, 2013 at 1:34 pm

      BullS

      Is is called misrepresentation- you will be sued and then go to JAIL!! all because of just making a buck in this silly domain game.

      Greed!!!

      April 13th, 2013 at 1:59 pm

      Elliot Silver

      What misrepresentation? I am saying that you be open about being a domain investor rather than not disclosing what you do.

      April 13th, 2013 at 2:03 pm

      BullS

      Isn’t INVESTOR supposed to make money by buying low and selling HIGH?

      You told them you just gonna develop the site and won’t sell to the competitors….are you saying you will turn down 1000000000$ plus sex and vodka if put in front of you?

      I guess Domainers will do anything to make a buck!! lie, cheat steal murder ransom etc etc etc

      April 13th, 2013 at 2:17 pm

      Elliot Silver

      You either misread or misinterpreted what I wrote. I would never tell someone that I wouldn’t sell a domain name. If they ask what I do, I would tell them that I am a web developer and domain investor. I wouldn’t make any promises on my plans for the domain name, and I would never buy a domain name that had restrictions on resale.

      April 13th, 2013 at 2:26 pm

      Jacob

      Pretty sure he’s just trolling.

      April 14th, 2013 at 3:50 pm

    Adi Weitzman

    Elliot,

    Did you ever sell ResistancePool.com?

    April 13th, 2013 at 3:24 pm

      Elliot Silver

      I am pretty sure I did. I don’t recall off the top my head, but I would think a WHOIS search will confirm.

      April 13th, 2013 at 3:25 pm

      Domenclature.com

      @Elliot,

      You should have checked before answering the question by Adi. I recall asking you about Sharedwebsitehosting.com and you gave me a similar answer, it turns out you still owned it. I’d think that you could simply check your records before answering such questions, and not off your memory?

      April 13th, 2013 at 7:52 pm

      Elliot Silver

      I like to reply quickly and it’s not easy to check records on my iPhone.

      April 13th, 2013 at 7:54 pm

      Domenclature.com

      I see. The only reason I butted in is that, there’s a third possibility in regards to checking the WHOIS data: you could have dropped it, without selling it, and another entity registered it in the interim, that vitiates the guess work. But, I accept your explanation. Thank you.

      April 13th, 2013 at 8:34 pm
      April 13th, 2013 at 9:52 pm

    Adi Weitzman

    The only reason I mentioned it is because I googed sales template letters and the endless pool article came up. I was just curious if you sold it since then. I probably should have checked Domain Tools.

    April 13th, 2013 at 10:30 pm

Leave a Reply

Name *

Mail *

Website