If I were to name just one thing that is needed for you to be a good domain investor, I wouldn’t pick one of the traits you’d expect me to choose. I wouldn’t choose intelligence, I would not go with determination, nor would I pick something like eagerness to learn.
What what I choose then?
Well, here’s what I choose, drumroll please: money.
As strange as it may sound, I think that money is the best answer to today’s question. And while it may seem weird, bear with me for just a second. Ask yourself why most domain investors fail.
Well, for one, they fail because their inventory is not good enough. Would money solve this problem? Why yes, it would. Even if you’re not the most talented domainer in the world, you can simply participate in auctions and buy investment-grade domains. That way, the value of the domain is validated by other bidders as well, so it’s not just a shot in the dark. While it may not be the ideal situation, but does tend to put you in a reasonably good position to do okay in the long run.
Another reason why domain investors fail is represented by the fact that they don’t sell their domains at high enough prices. During the negotiation process, they are quick to fold. If you don’t ask for more, you don’t get more. Would money solve this problem? It sure would help! You see, it’s easy to stick to your guns and demand higher prices if you have enough money in the bank for you to be more than comfortable. However, if you have bills that have to be paid or other financial obligations, things get complicated quickly. You end up being practically forced to accept whichever offers are presented to you and that is not good.
These are just two examples of situations for which money represents a simple solution. I’m sure you get the point I’m trying to get across and understand I am by no means saying that blindly throwing money around when investing in domains is the best approach. I’m simply trying to point out that being well-funded is far more helpful than most people think. In fact, I have a hard time imagining something that is of greater help than a good capital position.
Today’s “Captain obvious” conclusion is therefore this: money helps more than anything else.
Who would have thought, right? š
September 2nd, 2015 at 1:24 pm
I agree money is part of the equation but personally I would put common sense over money. Anyone can go register a $10 domains and sell it for $1500. It’s done all the time.
1. Common Sense
2. Money
September 3rd, 2015 at 12:19 am
Well, for one, they fail because their inventory is not good enough. Would money solve this problem? Why yes, it would.
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No way! With more money most would buy up even more bad domains. Less money helps initially in my view.
September 3rd, 2015 at 4:09 am
@todd: common sense would be my #2 choice š
@snoopy: the thing is, money enables you to buy domains about which you can be 100% convinced that they have value via auctions for example. The value is validated by other bidders and sure, you might and probably will overpay but by acquiring investment grade domains right from the beginning, such investors are multiple steps ahead of most newbies. For example, even if you overpaid for a LLL dot com let’s say 4 or 8 or 2 or 6 years ago, you’re in pretty good shape. Someone who hand registered a bunch of awful domains… not so much š