Categorized | Domaining Tips

Black Friday Mistakes vs. Domaining Mistakes

Posted on 22 November 2013 by Andrei

Believe it or not, there are lots of similarities.

Back in October, I explained that one of Warren Buffett’s famous quotes (“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”) makes perfect sense when it comes to domains as well.

Today, I’ll take things one step further and use the Black Friday analogy to explain that buying something useless just because it’s “on sale” is worse than not buying anything at all.

It’s actually what a lot of people do whenever there are Black Friday sales.

They walk into the store with cash in their pockets and end up buying lots and lots of useless stuff just because it’s on sale.

When they walk out, they have considerably less money in their pocket and nothing to show for it aside from lots of rapidly depreciating assets.

The same principle applies to the domaining industry as well.

Lots of domainers buy mediocre domains just because they’re “on sale” (either available at the registration cost or for sale at a very low price) but ultimately end up realizing that they traded in their money for a liability: for something that costs $8 per year to keep, generates no revenue, has no reseller market value and no end user potential whatsoever.

In other words, the same thing happened: the person in question has less money in his/her pocket and nothing to show for it aside from mediocre domains which aren’t even assets, they’re liabilities.

There are savvy Black Friday shoppers and there are unrealistic ones, just like there are savvy domain investors and unrealistic domain investors.

Pick a side.

I’ll repeat this until my fingers hurt from all of this typing: always try to make rational as opposed to emotional decisions.

This one piece of advice can make the difference between a successful domainer and someone who loses money.

You’re welcome 🙂

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