Misconception: To Be Successful, You Need to Have Bought Domain Names Years Ago
@elliotsblog Your success is due to brilliant moves that you made years ago. Doesn’t negate drop in direct nav that FB & mobile apps bring.
— A Mitchell (@aem76us) February 17, 2012
I had a conversation via Twitter today that I want to share with you. The conversation piqued my interest when the other person said, “Facebook’s amazing global popularity makes domains less relevant than they’ve ever been.” I mentioned that I was in the midst of a very good sales month, and his reply to that is embedded above.
In my opinion, one needn’t have bought domain names in the 1990s or early 2000s to be successful in the domain investment space. I started buying and selling domain names in 2003 (late compared to many pros), and I don’t own a single domain name from when I started. Just about all of my domain sales are on names I’ve acquired within the prior few months, although I sell a “legacy” name from time to time.
I would imagine almost all of my domain name holdings have been acquired by me post-2006, and if any were bought before 2006, they aren’t of high value. I do think older names may be worth more (depending on the name of course), but I don’t think that a person has to have started back in the 90s or early 00s to be successful at this business today.
Almost every day, I buy domain names in the aftermarket, many with the hopes of re-selling in the short term at a profit. I risk my own capital to grow my business, and nothing is handed to me on a silver platter. My experience guides me, and that is what helps make me determine when to buy and sell.
Although many companies are using Facebook urls in marketing campaigns, nearly all have their own websites and domain names. Perhaps some companies may be more inclined to spend marketing dollars on Facebook advertising campaigns than on domain acquisitions, but I don’t think Facebook has made domain names less valuable. It’s more likely that Google has devalued domain names to some extent, but even that is debatable.
It is my opinion that someone just starting out in the domain investment space can still make a lot of money. I don’t think investing in domain names is a way to make quick profits unless you have the experience and are willing to risk large sums of money. However, for someone willing to learn the intricacies of the business, there is plenty of money to be made.