Hello, happy Monday and welcome to Domaining MBA Monday. I have been doing this series for quite a while now and realized that it was time to do a “Start Here” post for people completely new to the Domain Investing world. With so much misinformation out there I hope this post will serve as a way for people to understand the very basics of what is involved with getting started in this industry. Ready to rock? Let’s get started.
Most people get started in the Domaining world after discovering the fact that people are actually actively buying and selling domains. I was one of these people, and like most people that get inspired by this new world I started buying domains like crazy. The thinking that most new investors have is, “All I have to do is sell one of these for big bucks and I’m in good shape!”
Since most new investors only know how to hand-register domain names they begin amassing hundreds of domains they came-up with at 2:00AM and exclaimed “I can’t believe this is available!” The problem is, rather than finding a repeatable model or proving that they can make a profit they instead continue to buy domains without making a sales assuming that what they are buying are real investments.
I have had hundreds of domain lists sent to me from new investors and about 95% of the time the list of their “investments” is sadly a portfolio full of liabilities, not assets. The problem is that there are far too many people out there claiming to educate people about domain investing, when instead they are painting a false reality and preying off of new investors. They give people false dreams of spending only a few hours a week and making six-figure incomes.
The truth is that Domain Investing is not a great way to get rich quickly, nor is it a way to make good money while only working a few hours a week. I am proud to say that Domain Investing is now my primary income source and I do make six-figures (profit) with domain names, but it took me three years of incredibly hard work to get here.
The reality is that most new investors will burn through thousands or tens of thousands of dollars learning. I personally spent over $25,000 when I started and wasted most of that money, it was an incredibly difficult and humbling experience. What I tell new investors now that will hopefully stick with you is that you should spend far more time learning about the industry in the beginning rather than buying domains because most of what you buy will most likely be a liability rather than an asset.
Find a mentor in the space, someone that has done what you want to do and learn from them before investing. However, once you start, know that Domain Investing is not a great way to get rich quickly, and will most likely involve spending $5,000 – $10,000 when you get started without making any of that back. If $10,000 is an incredibly meaningful amount of money for you I recommend you avoid this industry, the learning curve is too steep and initial investment too high.
This is why I also recommend that most new investors attend a conference in the space first so that they can learn from people who are at the point they want to be at. What you’ll find is that the most successful investors in this industry work 12+ hour days, not one to two hours a week, and you’ll find that they also weren’t an overnight success like so many eBook and video courses would like you to believe.
Many new investors complain that conferences are too expensive but both TRAFFIC and WEBfest tickets can be purchased for under $1,000 if you buy them in advance. If you can’t afford $1,000 – $2,000 to learn about this industry then you really can’t afford to buy the domains that you’re buying right now.
I love the Domain Investing world, it has changed my life forever and I couldn’t be more proud of making more money than I did in my day job with something that I personally control. At the same time, like I said above, it took me three years to get to that point. I don’t have kids and I was able to spend every night and weekend working like crazy and burning through money in the beginning. If you have a demanding job and kids and can’t spend 20 hours each weekend and five hours every night learning, don’t expect to see the same results.
I find the biggest problem most new investors have is a lack of time, they want results but they only have 5-10 hours/week. At that rate it would have taken me over ten years to get to where I am right now. For most people that’s just too long.
I know I’ve just gone over a lot so let me summarize below:
- There is a lot of misinformation about Domain Investing out there. A lot of this is perpetuated by “educators” who actually make their money teaching people about how easy it is to make money with domains when they themselves actually haven’t made any money themselves. Be very wary of these resources, all it takes it reading free blogs like mine on Domaining.com and you can get the basics under your belt.
- If you only have 5-10 hours/week don’t expect to make six-figures in a year, two years, or even ten years. Domain Investing is hard work and takes a lot of time. With 2-3 years of 40+ hour weeks you could turn it into a business but it really does take a lot of time and dedication.
- Stop buying domain immediately. If you are buying domains and not making money the best thing you can do is stop. You probably don’t have a portfolio of investments, you probably have a collection of liabilities. Stop what you’re doing and start learning.
- Attending a conference like TRAFFIC of WEBfest can greatly accelerate your learning by giving you the opportunity to network with investors that are where you want to be.
I hope this serves as a sobering article for you and that some of you reading this will decide that Domain Investing isn’t for you. Like I said, if you only have an hour here and there and you don’t have the budget to attend a conference you’re better off putting your money into a money market account or gold and just letting it sit. If you do have $5,000 – $10,000 to play with and you do have nights and weekends available to dedicate to Domaining, you can make a very meaningful income, but understand there is no “get rich quick” when it comes to Domain Investing.