Most domainers only analyze the positive aspects associated with being a domainer “back in the day” (before we even called it domaining) and there are lots of them, can’t argue with that.
What I’ll try to explain today is that it wasn’t all sunshine and rainbows, there were several challenges due to which a lot of people ended up abandoning domaining altogether.
For example, how much does it cost to renew a domain today? About 8-9 bucks. In other words, renewing a portfolio of 1,000 domains costs roughly $8,000 – $9,000 per year.
Back in the early days of domaining, registering and renewing domains used to cost significantly more.
Fees were introduced as of 1995 and Network Solutions used to charge $100 for two years.
In other words, keeping a portfolio of 1,000 domains for two years would cost $16,000 – $18,000 at this point but back then, it would have cost $100,000.
Not only that but think about something else: right now, everyone knows domains are valuable and basically represent Internet real estate.
In 1995 however, most people (the overwhelming majority) would have laughed in your face if you would have told them you were a domain investor.
Actually, a lot of people still laugh in your face if you tell them that, almost 20 years later.
If you would have told them you paid $100 just to keep those “domain thingies” for two years and did it not just for one but for hundreds of domains or even more, probably all of your friends would have thought you lost it for good.
Under such circumstances, a lot of potential domainers were discouraged.
Many people knew, deep down inside, that domains were a huge opportunity.
But did they all become domain investors?
No.
Did half of them become domain investors?
No.
Did 10% of them become domain investors?
No.
Did 1% of them become domain investors?
No.
Did 0.1% of them become domain investors?
Maybe but I doubt it, probably considerably less than 0.1% of the people who “had a good feeling” about domains actually became serious about investing in them.
My point is this: yes, in hindsight, it’s easy to say “wow, it must have been amazing” but those who were actually there can confirm that you had to be very confident in your ability to understand the Internet in order to shell out $100/domain/2 years back when a *lot* of people thought the Internet itself was just a fad 🙂
October 3rd, 2013 at 7:18 pm
Also, domain investors who start now have extremely useful resources such as domain forums and blogs that can help them learn to pick the right names without wasting money. Back then, your *guts* were your only guide.
October 4th, 2013 at 7:36 am
It might not have been easy, but it sure was much more interesting. There was a thrill in dropcatching, there were sleepless nights of hand-regging cool domains. Now I feel it’s all about money and not much else.