Before we ever get to selling domain names, the first question one has to ask oneself in 2019, is Why? Why do I want to be a domain investor?
Possible answers are:
- I think it’s easy (It’s not)
There is a low barrier to entry and startup costs can be minimal. (That can be a plus and a minus)
- I am well versed in linguistics and this just seems like a natural fit.
- I love to name things, I am the person that named the family business, I have given friends names for their product or service, I really enjoy doing that.
- I just believe in the growth of the Internet and believe it still has a long way to go. (maybe investing in Verisign or GoDaddy would be a better opportunity).
But you really need to have a firm answer and understanding of your answer as to why you are doing this.
Many people have no understanding of branding, linguistics, marketing, negotiation skills, etc…
There are millions of names that should have never been registered in any extension, and is just an endless cycle of a domainer hamster on a wheel going nowhere, but damn those little legs are moving, giving off the impression that things are moving. They are not.
I also believe some investors think they are at another level than what their portfolio quality, experience and bankroll are.
Many times someone who I know is broke, has told me “I am playing it like Rick, I don’t even reply to the first couple offers.” To which I always ask, do you own names that are the same quality as Rick?
Can you afford not to make a sale? Because Rick can afford to never sell another domain name.
There is a lot that goes into an assessment of one’s experience in domaining, many times the focus should be on the micro not the macro.
Is domaining harder? Of course it is, when 20 times the amount of people participate in something as opposed to the former number, competition is ratcheted up.
Bottom line this is not a sexy business, the early days when few people knew you could resell a domain for big money was the sexy time, when Frank Schilling was having people send him $1,000 per name when he thought he made a bulk sale for $1,000, that was a sexy time.
This is grinding, like Fantasy Sports, Poker, Affiliate Marketing, you better have a work ethic, be a hustler, have a better formula than others, or just plain get lucky.
But to walk in and say “Hello domaining, I don’t know why I am here but I heard this was easy.”
That horse left the barn a long time ago.