Domain Investing is Not a Way to “Get Rich Quickly”
I hate to burst anyone’s bubble who thinks otherwise, but I don’t think there is any “get rich quick” strategy for domain investing, and also don’t think there are any fail proof ways to make money from domain names. There is significant risk in domain investing, and it is not unlike other types of investing (real estate, commodities, stocks…etc).
There are quite a few people who make a living with their domain investments. Many of these people make a very good living. I wouldn’t even venture a guess about how many people make their full time living investing in domain names.
One of the things that most of the people who make a living from domain investments have in common is that they have been in this business for many years. This longevity gives them considerable knowledge about operating a successful domain investment business. In my opinion, the most important aspects of managing a domain investment business are:
- Knowing the resale market
- Knowing how to stay informed of market changes and domain name ownership changes
- Knowing how to get in touch with domain owners and prospective buyers
- Knowing how to negotiate
- Knowing when the time is right to sell a domain name
- Knowing when the time is right to buy a domain name
- Knowing where to buy domain names
- Knowing who to ask questions of and knowing the right questions to ask
- Knowing how to monetize domain names
- Knowing how to mitigate legal risk
I don’t think there is any way to become an expert at all of these aspects of the business without actually being immersed in the business for a long time. It is easy to spend a lot of money buying domain names, but it is not nearly as easy to sell those domain names profitably.
Plenty of people made money by selling one domain name or a handful of domain names. However, one great domain name sale does not make a business. There have also been plenty of people with grandiose dreams of making silly amounts of money, and they have left with those dreams unrealized.
Like any other types of investing, there are people who have done well and there are people who have lost their investments.
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