Categorized | Domaining Tips

How Much Upside?

Posted on 08 January 2014 by Andrei

Now on the one hand, it’s obviously better to buy one good domain than 10 mediocre ones. I’m pretty sure most people agree, no need to explain why. On the other hand though, it it also better to buy one amazing domain than 10 good ones?

This is where it gets tricky.

If you want to buy a truly amazing domain, it’s going to cost you.

It could end up costing you so much, in fact, that there’s hardly any upside left. Domainers often end up paying more than they should when bidding on amazing domain.


Because they let their emotions take over. They consider winning that auction a personal victory, it makes them proud… even if the deal is actually questionable from a “is there any upside?” perspective. In other words, their decision ends up being ego-driven rather than based on sound facts that point to a high likelihood of ultimately making money.

This issue doesn’t receive the attention it deserves in my opinion.

Not just beginners end up losing money due to ego-driven decisions (although they are indeed more prone to making such mistakes), even experienced domainers end up letting the fact that they would love to own that domain cloud their judgement.

Of course you’d love to own it, anyone would but at what price?

Now I’m not saying you shouldn’t buy amazing domains, not at all.

I’m simply explaining that amazing domains shouldn’t represent an exception when it comes to your acquisition standards just because the thought of owning them is appealing.

If the acquisition makes financial sense, go for it.

If not, move on.

Always ask yourself if we’re talking about enough upside to make the acquisition worth it. Otherwise, you’re just blocking capital in an inefficient manner and we can’t have that 🙂

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