Hello, happy Monday, and welcome to another Domaining MBA Monday here on MorganLinton.com. One of the things that I always find interesting about Domaining is that it’s often not about how much money you spend on domains, it’s about what domains you buy with your money. While you might think that all the people making six-figures in the domain space either started in the 90’s or got lucky, this is far from the truth in so many cases.
It’s not about how many domains you own, it’s about the quality of the domains you own. There are many different ways to spend the same amount of money as someone else but see very different results. Since most beginners start spending a few thousand dollars on domains I thought this would help give you some ideas about how to better spend your money. Ready to rock? Let’s get spending!
1. Hand-register 100 domains for $1,000 – most new Domainers start by spending thousands of dollars hand registering domains. They register these names often without ever having sold a name but instead getting inspired by looking at what domains have sold in the past. Each name they register they exclaim “I can’t believe this was still available!” $1,000 later they are convinced they have a six-figure portfolio and they can now kick-back and watch as the domains sell themselves.
Many new investors make the mistake of buying names similar to domains that recently sold for big bucks. Remember, just because you see NewYorkHotels.com sell for a lot of money, doesn’t mean NewYorkHotelsOnline.com will sell for even 10% of the price, it probably won’t sell at all.
While seasoned Domainers can do well with hand-registered domains, most of what a new Domainer hand-registers will be complete junk…which is why the domain was available to hand-register in the first place. I get emails from people every week with long lists of domains they’ve been renewing for years, they just can’t figure out why they aren’t selling…
2. Buy two expired domains for $500 each – for some reason new Domainers tend to be scared to spend $500 on a domain name, they’d rather have 50 for that price. However 50 crappy hand-registered domains sure doesn’t beat one decent domain, originally registered in the 90’s and purchased in an expired domain auction for $500. If you do your research and pick two domains with strong end-user sales potential you could turn that $1,000 in $5,000 or more.
It’s important to remember though that just because you spend $500 on an expired domain name doesn’t mean it’s worth more than $500. There are plenty of domains that sell for $500 that you couldn’t sell for $100. This is why doing your homework and researching every domain you buy is so important.
3. Spend $1,000 on one domain name purchased from a guy (or gal) who has owned it for years – many pro Domainers buy from regular people who bought a domain originally for a project which they have abandoned for one reason or another. Yes, it takes a lot more time to find these domains, contact the buyers and negotiate a sale, but when it happens amazing deals can be found.
You can read more about a domain I bought for $3,500 and sold for $17,500 here.
The moral of the story should be clear by now. Not all domains are created equal and it’s not about how much time you spend searching through drop lists or how many thousands of dollars you spend on domains, it’s all about quality. The better deals take longer to find but I think that’s true with most things in life.