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
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.
I think you quit, if you are not going to really compete what’s the point?
I am sorry you had to speak to this idiot.
Another idiot that wants to get rich without doing any work and/or without any capital.
He has made the right decision.
A lot of people feel this way.
Not nice calling him an idiot. He realizes something most all of domaining does not.
First, he doesn’t know what to do. No disrespect, but that’s clear to me. It’s fine, especially since he seems to understand that.
But like many others, he refuses to buy from domainers…even perhaps for objectively wholesale prices, right?
That’s because this is a bubble. Deep down these newbies know ‘something’ is off. They want to learn, but they won’t oblige you. Domainers are telling folks they need to buy the domains from them..hello?
Many investors instead opt for dropcatch. It’s no wonder, but something’s happening there too…
All the signs of a bubble ready to pop! You just need to read a crowd…
Even the ‘pros’ are complaining dropcatch/auctions are getting too competitive/expensive. Look, you are *explaining a bubble* YOURSELVES!
The bottom falls on .com. It’s here. What you see is basically domainers pushing domains between themselves. Bidding up soon-to-be empty bags.
Beware if you see a ‘good deals’. Don’t catch falling knives.
Falling relatively fast ppl. Your biggest problem isn’t what you *might* still get. Your problem is liquidity. Don’t blame the ‘noobs’ not wanting to create more liquidity for you. Poof.
Well he was not any example of a bubble, he was mad he was already not rich. He did not want to pay what he considered big money for a domain name, because he did not think it was justified. He also thought new gtlds were a joke, and asked me if anyone ever filed a class action suit with the department of justice?
I told him he was a bit off in his understanding of new gtlds, class action suits and the department of justice.
He did not want to buy from other domainers because he told me he did not like most people in this business, nothing about liquidity.
Think he sees all the sales reports and thinks it’s all golden with domain without putting in the work and be smart about it .
Domain is not for the faint of hearts.This has been my best year in sales since I started.I read and read and worked smart and learnt from doing as many researches before spending.
Good thing he quit .There are so many lazy domainers who keep asking,why you buy these and what made you come up with these name.They never read and want the short cut by buying crap .
Only the smart will survive in the domain business and make good sales to be comfortable.
If dot com has a problem new gtlds are going bankrupt like your worthless .online.
Thanks for the article, it was a good read, lesson, & the type of info that is not typically (easily) found – by those looking to learn about the industry.
Too many scammy, get quick sales, & typical internet scammy ads. Those ads wouldn’t be there (across every business) if people didn’t respond to them & are tricked by them, in many cases.
What they really need to find are honest. real world, real costs, real experiences to make a decision on the true opportunity + fit.
Thanks again.
no pain no gain. You put down a substantial amount of money, you are going to watch that investment til it works. No question, domaining was not for him. If you had thrown facebook stock in his face before it was known, he wouldve said the same thing. You got to take a chance sometimes and sometimes you gots to go with the blue chips. 🙂
Sounds like a right fool sorry this person should quit as to me he doesnt have a clue.