“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?
Money Talks
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!
October 24th, 2010 at 8:51 am
i always ask myself “what am i gonna have for lunch?”
October 24th, 2010 at 9:13 am
I’m very curious how those with over 10k domains are doing in this economy. With parking down I’m having a hard time believing theyre profitable.
October 24th, 2010 at 9:29 am
nick if you’re business is based on parking no matter the size of the portfolio .. today you have problems .. the bigger the portfolio the bigger the problems
October 24th, 2010 at 9:55 am
i dont agree at all that your investments have to make money for you to keep your investments. there are people who will invest $20 million to buy a single painting because there is potential to sell it in the future for $30 million or more. they arent going to make money from it while they own it so should they just throw it away? what if someone owns over 200 LLL.com’s. they might not make a penny off parking but the portfolio might be worth over $1 million. if you take a gamble and invest in domains based on future technologies you wont make anything for at least a few years until you know if that technology is going to take off or not.
October 24th, 2010 at 12:06 pm
@nr: As a domainer, money ALWAYS needs to have a place in the equation because playing the buy and hold game without huge amounts of data is not something I’d recommend.
For example, certain domainers with impressive portfolios do not sell for amounts below $x but they didn’t just choose a certain figure for the sake of it. They have chosen it because based on the data they’ve gathered over the years, the figure in question makes sense financially.
Statistically speaking, you are bound to receive offers (some of them very tempting) if you own a fairly large number of good domains. If 2, 3, 4 years and so on has passed and you haven’t received a decent number of offers worth accepting, something might just be wrong
October 25th, 2010 at 2:17 pm
“lots of stores accept cash as well as credit/debit cards but how many accept potential?”
Funny, but the Ferrari dealer down the street here in Silicon Valley does. They have been since Netscape IPO.
You’re point still stands – it’s a business, and you need to calculate your ROI.
October 26th, 2010 at 12:25 am
Hey i need to find a way to make money online. I just want a little source of income. What i dnt like is those little ptc sites that pay you like .10 cents every now and then and you make like 2.00 a week.
November 1st, 2010 at 4:43 am
Think of your skills, what can you offer? Browse the Craigs List classifieds., lots of scams, but some actual good jobs. I’ve been looking on and off for a long time and got lucky last week.
November 1st, 2010 at 6:03 am
What is the significance of spiritual gurus in today’s world,are they just making money or benificial?
November 2nd, 2010 at 2:21 am
I don’t even remember what the argument was about, but what she had said still lingers in my mind. I think besides having a name and money you also have to have looks..
November 3rd, 2010 at 4:58 am
They have chosen it because based on the data they’ve gathered over the years, the figure in question makes sense financially.
November 8th, 2010 at 11:13 pm
cool. i need tips from webmasters like your self to make my blogs right. good info, well assembled.
November 8th, 2010 at 11:17 pm
I like to take my time in order to make a good decision. The Lady who brought out the dresses wasn’t helping much. It seems like she really didn’t care and I could walk out with any dress as long as she made a sale.
November 9th, 2010 at 11:18 pm
I just want a little source of income. What i dnt like is those little ptc sites that pay you like .
November 23rd, 2010 at 12:49 pm
Hard data is sometimes hard to absorb for many people. I agree “potential” is extremely overused and abused. However sometimes it does shine through and can return a great profit. I think that everyone should answer those 4 questions every 3 or 3 months and then make a decision on whether or not to 1. renew domains 2. buy new domains 3. let some domains expire
December 1st, 2010 at 3:51 am
nick if you’re business is based on parking no matter the size of the portfolio
December 1st, 2010 at 3:52 am
I don’t even remember what the argument was about :/
December 7th, 2010 at 12:50 am
What is the significance of spiritual gurus in today’s world,are they just making money or benificial?
June 7th, 2011 at 7:32 pm
I agree that statistics are extremely important to your business.
July 21st, 2011 at 8:26 pm
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