“Potential” is probably one of the top 3 words that domainers overuse. Potential this, potential that. I have one simple question for you: does potential put food on the table? Or here’s another one: lots of stores accept cash as well as credit/debit cards but how many accept potential?
Whenever a topic such as “what makes a domain valuable?” is being discussed, lots of people start explaining that when it comes to domains, beauty is in the eye of the beholder. Oh really?
Way too many people are not organized when investing in domains and that’s just plain wrong. They blindly buy a domain today, two tomorrow and ten next week but then renewals come along and it’s reality time.
4 simple questions:
How much money did you spend acquiring domains last year?
How much money did you spend on renewals last year?
How much money did you make via parking and other traffic monetization methods last year?
How much money did you make from sales last year?
That’s it, leave all of the bs aside for just one moment and answer these questions. Then, subtract the money you’ve spent (acquisitions + renewals) from the amount you’ve made (traffic monetization + sales) and draw conclusions.
For how long have you been a domain investor?
You can ask yourself the same 4 questions and analyze data over the past 2, 3. 10 years or whatever. Never EVER underestimate the importance of data and always be realistic, let other people waste time in fantasy land while you keep your eyes on the prize!