I always laugh when people say that the only people who make money with domain names are the guys who got started in the early days. When I started in 2007 just about everyone told me I was too late, and another “late-comer” that is making waves lately is Logan Flatt, who has been flipping two-word .COMs for a very healthy profit.
Back in July Logan went on the DomainSherpa show to talk about how he sold SmartMonday.com for $14,488 after buying it for $69 just three months earlier.
Three days ago Logan announced another solid two-word .COM sale, TheMarc.com which he also bought for $69 but this time back in 2014 and sold last week for $6,800. It’s a great example of the strong value that two-word .COMs continue to have and the opportunities that are out there for new domain investors.
Other well-known Domain Investors like Rick Schwartz, Frank Schilling and Mike Mann have also talked about the names they have purchased recently and flipped for massive profits. Sure, the big name Domain Investors also have incredibly names they bought 10 – 20 years ago but if you look at what they’re selling on a regular basis you’d be surprised how many of them were names that anyone else could have bought in auction if they were willing to make the investment.
All that being said, results like these shouldn’t cause you to rush out and buy as many two-word .COMs as you can get your hands on. You could buy 100 domains for $69 and not sell a single one so it’s really not as easy as many would like to believe that it is. In fact, now more Domain Investors than ever are trying to sell their entire portfolio which usually means only getting pennies on the dollar. Many of these portfolios are full of two-word .COMs, but they’re essentially junk, and sure, many of them also cost only $69.
Rick Schwartz made a good comment on these portfolio sales earlier today:
It can be all too easy to hear people like Logan talk about their two-word .COM sales and think that all they had to do was buy two-word .COMs for a low price and flip them for a huge profit. Just don’t lose sight of the fact that there are far more “Domain Investors” out there who are trying to liquidate their portfolios and kicking themselves for buying so much junk.
The challenge is developing an eye for what sells. Rick calls junky domains pigeon shit, and knowing what is a steal of a deal for $69 and what is a giant heap of pigeon shit for the same price, well that takes time and experience. The great thing about the domain industry is that if you aren’t sure, you have direct access to the experts who will give you their honest opinion and help you get on the right path.
The biggest mistake you can make is just to buy without listening and learning, yes you’re going to make mistakes, but you can limit the mistakes you make by being humble, asking people what they really think of what you bought, and not getting emotionally attached to your domains.
Congrats to Logan on the slew of solid two-word .COM sales, here’s to the next one which is probably just around the corner!