The domain industry gets a tiny bit tougher as the years roll by but there is always money to be made. I’m going to discuss a few reasons why you may not be making money in domain investing. I spend hours a week on various forums, exclusive sites, and domain registrar sites like GoDaddy to stay on top of my game.
You Are A Gambler
Many of the folks in the domain industry are kind of like gamblers. They put up huge risks in the hopes for big returns by purchasing thousands of domain names. They seem to get a high off of the auctions and continue to add domain names to their portfolio. You can be a domain hoarder but don’t buy just any domain name that comes your way.
500% Return Isn’t Good Enough For You
How many times have you passed on an awesome offer just because you thought you might be able to get a better offer further down the road? And then nothing came of it. If someones approaches you out of the blue and offers you a $500-800 for a name you’ve no bites on for months, take the freaking money! You can be a day dreamer or you can make small profits here and there and build a domain empire.
Money Is The Game and Goal
Do you pay your bills with money or with the domains you are sitting on? I would love it if my landlord would take some of my domain names instead of my cash. Everyone in this industry wants to get the most out of their domain names but keep in mind that some will go up and while others will go down. Your domain is only worth what someone is willing to pay for it. You are not doing it correctly if you are not making annual profits on your past purchases. You can build a portfolio but don’t sit on it for ever and put some cash in your pockets.
Purchase Based On Quality And Not Price
Regular maintenance on a car is important and will help you have money in the long run when it comes to repairs. The future savings out weigh the cost of the maintenance but people still skip it. The same can be said with domain names. Lots of folks will purchase ten $50 domains rather than spend $500 on a single name. You get the feeling of spreading the risk and don’t feel like they’ve spend as much because it’s not $500 at once. You shouldn’t just look at the price but also look at what you are purchasing and the quality of it. Bad quality will get you poor results (little or no profit).