Do Only Wealthy Domainers Go Far with Domaining?

My response to a recent question asked on Namepros follows.

New domainers generally want a “get rich quick” scheme (I refer to this as DN Journal Hypomanic Disorder). There never has been one folks.

Most top generics were regged pre-97. You can look at these guys as super lucky to get such a good name for cheap. I prefer to look at them as having amazing determination to renew these domains for 10+ Years. That’s not luck. They could have sold it all these years and chose to hold it until now. Some of the domains regged in the late 80s were near-worthless for an entire decade. Do you have it in you to renew your “worthless” domain for 10 years?

Imo, most of the people here wouldn’t be all that much better off even if they had gotten into domaining in 1988 instead of 2008. Who wouldn’t cave in to a $10,000 offer from CNET for your TV.com way back in the early-mid 90s before any of your friend even knew what an Internet was? You needed more than luck, you needed more than access to the information — You needed vision.

Nothing’s changed… Many domainers walked away with $10-$100k profit from very small investments in LLLL.coms pre-buyout. Vision. That was November 2007, not all that long ago… There will be more opportunities, there always are and always have been. Hindsight’s always 20/20 — it takes real balls to put your hard earned greenbacks on a hunch, but that’s what you’re going to need to do to hit it big nowadays.

Is it harder nowadays? Imho, no (coming from someone who’s been around for “awhile”). It’s never been easier to learn about domaining, there’s never been so many domain auctions, conferences, blogs, magazines, press coverage,… Back when I started, there wasn’t a Namepros and most people surfed the net with Yahoo, AltaVista, and Webcrawler 😮

And you know what? I made more this year (already) than I ever made back then…

If you make a sound investment in domain names today and hold it for 15 years, you’ll most likely make out very well for yourself. With risk comes reward… There isn’t as much risk involved in buying an LLL.com today as there was in 2004 when I watched them on eBay go for a nickel on the dollar (this actually isn’t a metaphor!).

Past gains have been phenomenal… But since the Bust, it’s largely been a compounding effect. LLL.coms didn’t go from $500 to $10,000 overnight — they slowly went higher month by month, year by year. I was certain in ’04 that paying $500 for QXZ-LLL.coms was insane! Vision. I didn’t see it then — I see it now.

My advice: Read, read, read. Learn as much as you can about this industry. Whether you choose to develop, handreg, or purchase aftermarket domains, pick a niche and stick to it. Nobody can possibly be an expert in all areas of domaining, so pick a niche and become an expert in that niche.

I was doing some WM work for a library a few years back which had the following inspirational poem on the wall:

The more you read, the more you know.
The more you know, the smarter you grow.
The smarter you grow, the stronger your voice,
When speaking your mind or making your choice.
(author: Jim Trelease)

I couldn’t agree more. Those are words to live by and certainly reflect my domaining journey…

Slow and steady wins the race. It might “take money to make money”, but saying “I can’t”, “I came too late”, “It’s too hard”, ad infinitum certainly isn’t doing anything but creating a negative environment that promotes and encourages failure.

Source: Do Only Wealthy Domainers Go Far with Domaining?

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~ by Reece on April 27, 2008.

4 Responses to “Do Only Wealthy Domainers Go Far with Domaining?”

  1. Very insightful Reece! And I must say I don’t think I can disagree with a single word!

    Rich 😎

  2. I love that quote at the end!

    Many new domainers make these excuses. And it does nothing but lose them money. They won’t even try for very long. In this business you need…

    A Sense of Urgency
    – You need urgency to jump on to opportunities before they pass right on by. That is not to exclude factoring in all of your well calculated risks. If you aren’t taking a risk… you probably aren’t going to make money.

    A Little Cash
    – Domaining is one of the lowest cost ventures you can board, with such a high return! A .COM domain name only costs $7 to register! What other market can you do that in? I have registered names only to resell them for $50 in 2 hours. I have registered names that are worth $x,xxx and have an end user market bigger than who knows what, There are still great names left to resister. Every business takes money to opertare, why should that exclude domaining.

    Research
    – Like Reese said “Slow and steady wins the race”. That is true (not to exclude a sense of urgency, urgency is more than just jumping on to opportunities and you will realize that after you domain for a little bit). Read. Read. Read. “Readers make leaders” – Bill Gates. You won’t last long if you don’t know what the markets are doing.

    Vision
    Your vision needs a little bit of backing up, but it still has to be envisionable. Have an outlook on the future and what its going to do. Your vision does have a tie-in with research.

    I had one more point but I can’t remember lol.

    I know that comment was all over the place and hard to read… but maybe someone will get something out of it. 😀

  3. Thanks Rich!

    Ty, very well said! 😉

    “Readers make leaders” — I’m going to have to use that quote sometime in the future!

    As you said — a sense of urgency, a little cash, reasearch, and vision. 🙂

  4. Thanks Reece

    Great read.

    I’m new to all this – just wondering if you could expand on ‘picking a niche’ in domaining. examples?

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