So yesterday I got an email from someone who said they read the blog and wanted to know if they could give me a call? They have been involved in domain name investing for about two years with little to no success.
He brought up a topic that I have discussed with friends before. He asked me if they should continue on with domain investing if they plan on never paying up?
I asked him what they meant by paying up? He told me he had no intention of ever paying a significant sum for a domain name, he was never going to buy from another domainer and put money in their pocket.
He went on to say if he had $5,000 to place in one investment, it sure as hell wouldn’t be a domain name.
The gentleman spoke very fast, I said let’s slow down. In domain investing we always have to ask ourselves questions, both on the micro level and the macro level.
Why do you want to be a domainer?
On the macro level, I asked him, “Why did you get into domain investing?” He replied he thought it was easy.
OK, mistake number one, it’s not easy.
What is a significant sum to spend on a domain name? This is a personal question that is different for everyone.
He came back to that $5,000 number.
I asked what about $2,500? Now that he was being asked in detail that became significant. Ok, moving along after about 10 minutes, it seemed that anything over $150 was paying too high a price to acquire a domain name.
I said ok, there are plenty of people who only hand register domain names or stick to GoDaddy closeouts and 1 bid names at NameJet. It’s a tough business you have to know what you are doing, you have to work hard and be organized, but you can make money if you are smart and want to hustle.
The conversation takes a turn back to getting rich. He asked me, “will I get rich this way? “I don’t want to just eek out a living”
I don’t like to ever tell someone they can’t do something or they should quit something. Without really knowing someone it’s a fools errand.
Getting rich, what’s rich? Another personal, subjective designation. In 2019 CNBC did an article that defined rich in the U.S. as:
To be considered “rich,” Americans say you need a net worth of at least $2.3 million. … The median net worth is $97,300, according to the Federal Reserve’s most recent research, the 2016 survey of consumer finances. The average net worth is significantly higher: $692,100, according to the Federal Reserve.Jul 19, 2019
If that is the definition we want to apply. It’s going to be hard to become rich with just hand registrations and GoDaddy closeouts.
The conversation ended with me stating I don’t want to tell you to quit, does what you are doing make you happy in any way? Is the juice worth the squeeze?
He told me he was miserable, domaining had not brought him the success he wanted. He thanked me for the talk and said it made him feel good about quitting. Getting involved in something else tech wise would make him happier.
Being happy in what you do is important for long term success. If he was never going to buy any domain names for more than a nominal fee, I guess he made the right choice.
Anyone can make a domain name sale. Making multiple domain sales year in and year out, takes a lot of work, hustle, and a fair bit of know how.
Sticking to lower value domain names with no desire to trade up can make domaining harder than it already is. There are easier ways to earn a living.