Categorized | Domaining Tips

“You’re Too Poor to Buy Cheap Domains”

Posted on 21 November 2013 by Andrei

In my country and probably in other cultures as well, there is a popular saying, my grandfather used to tell me this frequently many years ago:

“I’m too poor to buy cheap things”

I didn’t understand it at first but as time passed, I ended up realizing that when you’re buying cheap things, it may *seem* that you’re getting a bargain but in fact, the deal is anything but good.

In my opinion, this saying makes perfect sense from a domaining perspective as well.

Think about it, I actually referred to this example on other occasions here at DomainingTips:

Let’s assume you have a budget of $8,000.

On the one hand, you could focus on quality and buy one great domain at $8,000, 4 very good domains at $2,000 each or 8 good domains at $1,000 each.

On the other hand, you could focus on quantity and buy/hand register 1,000 cheap domains at 8 bucks each.

In most cases, the people who choose the second approach ultimately end up realizing that they are too poor to buy cheap domains.

Why?

Because at only 8 bucks each, they may seem cheap initially but once it’s time to renew the portfolio, you realize that you have to pay about $8,000 each and every year just to keep the domains you bought.

As a comparison, you would have only had to pay $8 per year to keep the great domain you paid $8,000 for.

… or only $32 per year to keep the mini portfolio of 4 domains you paid $2,000 each for.

… or only $64 per year to keep the mini portfolio of 8 domains you paid $1,000 each for.

In all cases, the initial cost was $8,000 but the most important difference is represented by the amount you have to pay to keep the domain(s) you bought.

If you bought one domain at $8,000, the cost to keep it is negligible. The same thing goes for the 4 domain mini portfolio or for the 8 domain mini portfolio.

On the other hand, those who bought the “cheap” domains at $8 each (in other words, an initial cost of $8,000 for 1,000 domains) ended up realizing it that they had to pay another $8,000 each and every year to keep them.

Again, I mentioned this example on DomainingTips in the past as well and the bottom line is this: in 2013 and beyond, most domainers will have to realize that they are indeed too poor to buy cheap domains.

It may sound weird but after crunching some numbers, I’m sure you’ll agree with me.

5 Comments For This Post

  1. Modern Domains Says:

    Great advice and a good way to look at it. Don’t settle for mediocre domains if you can afford higher quality domains. And don’t forget those renewal fees!

  2. Yammer Says:

    Obviously, we are talking about .Com only here. The gtld’s aren’t worth the effort to register them, let alone the money.

  3. AbdulBasit Makrani Says:

    I completely agree with you. Always focus on quality .com domains. Don’t go for quantity. Your given example is more suited for newbies and must be taken into consideration seriously before they heavily invest money in domains.

  4. Matthew Says:

    Great way of looking at it. It all depends on the work you put in to find the best values. I found eChica.com for sale for so cheap it was criminal. That one’s more valuable than ones you’ll buy from domainers for 50 times what I paid. Same deal with ones that dropped (and shouldn’t have).

  5. HowieCrosby Says:

    Great advice. Still you’ve got to be very confident to invest the $8000 wisely.