Things to Ask Yourself About Your Domain Investments
It’s important that you think about your domain investment strategy each day, and how your purchases and sales impact your strategy, both today and in the future. While most people have an idea of what they are looking to gain from their domain investments, I think answering some of the questions to yourself will put things into perspective:
- Do you sell your domain names?
- Do you buy domain names with the goal of selling them in days, weeks, months, or years?
- Do you buy domain names with the goal of building websites on them?
- Are you spending more money on domain purchases than you are generating with sales and advertising/PPC revenue?
- Are you buying risky domain names (trademarks, typos, gambling…etc)?
- Are you reaching out to potential buyers, or are you passively holding your names?
- Do you park your domain names?
- How much passive revenue are your domain names generating?
- How much are you spending on new domain names vs. generating from sales/PPC/advertising revenue?
- Is this a hobby for you, or do you hope to grow this into a full business?
- Do you have enough money in reserve to fight a UDRP or a lawsuit?
- Are your domain assets diversified (different types of names, various extensions…etc)?
- Are you involved in the industry in domain forums, and/or do you attend domain conferences in order to network with others in the industry?
These questions are somewhat personal and should be considered by people who are buying, selling, or developing domain names. Strategies can change, especially in changing economic times, but it is important to think about what your strategy is. I know of many people (myself included) who had no strategy in the beginning. Basically, you will be left with a lot of domain names that you like (and maybe nobody else), and while you may sell on ocassion, it’s not covering your expenses.
It’s very easy to spend a considerable amount of money buying domain names. Buying domain names smartly, while thinking about your strategy – short and long term – will save you money and make you money. Domain investing can be lucrative, in good times and bad. Developing a strategy and always considering whether you are sticking to your strategy will keep you in line to meet your objectives.
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