Domaining is the BIG but tricky business of buying lucrative domain names such as example.com in the hopes of developing it into a website, buying and selling for-profit, and monetizing it. Domains generally start at $10 a year, and when you luckily snag an available domain name that’s brandable, bankable, marketable, and drives in type-in traffic without any effort, then you’ve practically struck a gold mine. After all, premium domain names can sell for thousands of dollars to millions in some occasions. Just take a look at BTC(dot)com which was sold for no less than $1M and even Strip(dot)club which was sold for a handsome $10,000. Thing is, it’s not really easy like that.
Over the past few months (since December of last year) I’ve been pretty busy with domaining.
It’s internet real estate, basically
Having a single word, keyword driven, .com domain like Insurance.com or Money.com is like having that prestigious 5th Avenue address that is a highly trafficked major thoroughfare in Manhattan, New York City.
After getting your first domain, it can start to get addicting from there
Once you have a single domain, it’s all yours (as long as you keep renewing it each year). You can do anything you want to do with it. You can park it, re-sell it, or develop it into a thriving website. Anything.
That’ll lead you to question why it is still available, and realize how lucky you are that this piece of premium real estate you can own for a year for just $10.69. If you buy it, then it’s all yours and yours only.
If you buy it, that oh so sweet, sweet feeling right after you’ve bought your first piece of “valuable” internet real estate will feel sooo good, you will definitely want some more piece of the action.
Not to burst your bubble here, but the thing is, there are thousands of possibly valuable domains out there. And soon your problem might turn from buying catchy domain names, to getting rid of your domain names in an instant
There are 26 letters in the English alphabet that can be used to spell thousands of word combinations. And don’t get me started with the various TLDs (Top Level Domains like .com, .net, .org, .info, .biz, .xyz, .co, .io – the list goes on) available with each name that you like.
But still, you’ll go ahead on a buying spree of the so-called “internet real estate”. You’ll go on and ask questions like:
What if someone gets the .net and .org version?
Should I get keyword domains to go along with my main one, too?
You’ll soon realize that after twenty or so domains that you’ve bought, you’ll need to do something with it – either create a new website that goes well with your domain, or re-sell it at a ridiculously higher price than you bought it for, and you’re like “hey, this is a bankable domain in a lucrative niche so this definitely is worth the price I’m selling it for”.
Umm, actually, not really.
Usually, if the domain is still available, chances are, there isn’t enough demand or value in it. And reality sets in when you realize that you need to dispose and resell it ASAP because it is expensive just to maintain and keep shelling out another 10 bucks annually for each of your domain.
The truth to it is, that it’s really not that easy to resell a domain name.
Take a look at below example from Undeveloped’s domain marketplace – CoolSneakers(dot)com has been in the market since last year. At $10,000, no one’s taking.
Over at Sedo’s domain marketplace, these nice, money related domain names that are sure to make you money are, well, still unsold.
And at a mere $50 – $60, still no takers of these money related domains.
So you have options here: stick to your unused or unsold domains and continuously (and expensively) renew ’til it sells, or let it expire. Your call.
Doesn’t these make you realize something? Well, I did.
The value of your domain is only worth what someone else is willing to pay for it.
So what is the best practice in domaining?
Unless your domain is money(dot)com, insurance(dot)com, travel(dot)com, google(dot), or even sex(dot)com, or any other obviously lucrative domains, chances, are that domain you’re eyeing is not worth anything.
BUT! What you can do instead is, to buy domains that you want to develop and create as your own. You need to work on it.
Remember in the first part I mentioned that domaining is like real estate? Well, I’d like to add more to it. Yes, domaining is internet real estate. And just like a physical one, you have to provide value before it actually realizes its value.
What I mean is, when you buy a domain, you are the one who will create or add value to that domain of yours.
A domain is just like an empty painting canvass. Yes you can buy it for cheap, but when you turn it into a masterpiece, that’s when the value comes in (and that’s when you can cash in, too).
Do not make a hobby out of it. Instead, think objectively and only buy domains which keyword you have passion in, that you believe in, and that you know you could grow and develop as your own website.
Hey I don’t want to be a hypocrite here, I must admit I was once addicted to domaining as well. But I am glad I soon realized all these.
I wrote this to spread awareness about this dark side of domaining that is rarely discussed. so I hope that you take something away from it. Feel free to share your thoughts as well in the comments below!
Feel free to comment, share your tips, or ask a question below (you can do so anonymously if you wish, too). Please feel free to share this with your friends, and also follow me on Facebook and Twitter. Thanks!