8 years ago Mike wrote a very popular post that got a lot of views and over 120 comments.
Domain Investing Isn’t Playing The Lottery, It’s Investing
When Mike wrote the post it was before new gtlds, it was before cryptocurrency and the blockchain became mainstream fare. There were not as many domain investors back then as there are now.
I agree with Mike 100%. But I can say discussions, debates on forums and Twitter certainly have their fair share of people who believe it’s all just luck.
So what do you think?
Original Post and 128 comments
A comments to another post on Minus.com selling for $115K inspired this post which is about the business of domain investing.
Here is the comment that sparked the idea for this post:
“”yeah like you can pick and predict the next lotto numbers”
“these forums and threads need to have stories of people losing money.”
“I want to see stories here headlined, “Another 300 people lose over $10,000 this month”
“I guarantee you for every lotto winner there are 1000s of people losing money; unfortunately, silently, because all these stories are all one sided, choosing only to show the lotto winners.””
This commentator is not alone.
They look like domains as a lottery ticket, where if you get lucky you sell one once in a while.
Wrong.
If you want to think of domain investing as a hobby or as a shot in the dark, a lottery ticket that’s your choice but its not a business plan.
Just like the lottery those who play it most are the one’s who can afford it least.
Domainers who think this way are most likely to registrar crappy domains thinking they may get lucky once and hit it big.
Domain investing however is like any other kind of investing.
If you buy shares of stock do you think of it as buying a lottery ticket?
Or do you do research on the company, figure out the market, look at the charts and the fundamentals?
Or do you just pin up the Wall Street Journal stock quotes page to the wall and throw darts and buy whatever the dart hits?
Domaining is no different.
Buy wisely.
Spend wisely
Invest for the long haul.
Yes you may get lucky and sell a domain a month after you acquire it but its not going to happen with regularity.
If you buying a domain with knowing you would have to sell it or drop it when the expiration is up, you probably shouldn’t buy it or register it to begin with.
Now a lot of people what to talk about timing and/ or luck.
Hey if you have enjoyed success in your life you probably have had some good timing and/or luck and/or karma and/or God on your side, or whatever you want to call it at some point.
No doubt.
But also you make your own luck to some extent.
Wise decisions led to luck.
The more good decisions you make, the more likely you are to be lucky.
Yes there are lottery winners.
1 in 14 million I think are the odds for the Florida lottery.
No Bueno.
Don’t forget that many people who have won the lottery have lost it all later in life, gambling, drugs, divorce bad investment.
Bad luck following good?
Or just bad decisions making for bad luck.
If all you’re going to depend on is luck to get you through life; well then good luck to you.
For the rest, do your homework, make a plan, stick to a winning plan, adjust a losing plan and work really, really hard.
And may the force be with you.
Yes,I went with skill with a bit of luck.
I nearly dropped a domain that sold for 8500 on Afternc 2 days ago. And I believe I listed the domain on here when you did that list domains 2000 USD and under. I know for a fact I tried to sell the domain on Namepros for 1800 2 years ago – per a name request — and the domainer counterered with “500 is my highest offer”
Lesson from Rick: never never sell to domainers, unless you really need the funds.
so, luck plays a lot in sales. My biggest sale all time was a brandable that I had owned for a few years. So happens a Fortune 50 company went to a branding company and my name was on the list of name to rebrand the subsidiary. I did have a site up and revenues, and some technology which the conglomerate acquired – negotiatons lasted for 7 weeks — but when you know someone wants something, you can hold out for maximum value
could you share your story ? do you have a whatsapp or email please ?
sincerely
Domainers are the luckiest sum bitches on the planet.
Guys, do more of “Post your domain for up to $1000”
When good domains were available to buy or register back in the old days 1995 to 2007, it was not luck…
Those days you could buy a domain and sell it for 10 times more next day to another domainer.
But now it’s all luck…buying from auctions, expired domains, or hand registering…it’s all mostly luck now to make a profit. And domainers are not buying from other domainers unless it’s a good bargain.
And good luck trying to find an enduser…will not happen unless you get lucky…very lucky.
I have been in the domain game since 1995 and have made no profit buying and selling after 2007.
And if i can’t make a profit, how do you expect a newbie to make a profit…zero chance unless you get lucky!!!
Your way to impulsive man, you got stuck on IndianJewelry.com at godaddy for $16K+, 2007 was a bad time to buy, but 2008 was one of the greatest times to buy, if you bought between 2008-2012 you should have done really well.
“If you are buying a domain with knowing you would have to sell it or drop it when the expiration is up,………..”
I find that sentence startling. I know you are on the boards and communicate with more folks much more than I do but is that a common discussion? Do people have that decision to make?
Great article.
Skill, with a bit of luck.
I have bought domains between 2008 thru 2012…
sold mostly everything last 2 years for a loss…
except on 3 and 4 letter liquid domains…made a little profit on some and lost on others.
A lot of inside scams on auctions.
Bought couple domains recently this year on auctions between $500 to $1000 and the people that bid against me are not willing to pay $100 for the names….scam!!!
What types of names were you buying to make a loss on all of them?
Probably expecting too much to make a good profit in 7-10 years also. Takes 100 years on average to sell each name. Do the math, if you sold them all you’ve sold them cheap.
i agree with u snoopy…takes 100 years…lol
“Skill with a bit of luck”
The key is that if you own the gold in the gold mine first, late diggers enjoy mostly the dirt.
As it goes, I say its gold for safety, crypto for the volatility trading and domains for intellectual sport. Domains are more or less a cartel of early movers running a market that looks more like art. Poor liquidity, one-time sales strike. I’d rather trade BCH.
A big problem is that too many match platforms are desperately lacking in evolution. Domaining has become like a small town coffin shop, (that’s as in dead).
Domains is fun and easy peasy.
Hand reg using GD 99cent coupons and selling like hot cakes now. And bought those 4l domains dirt cheap at 10$ a piece..now laughing all the way to the bank.
Total cost of hand reg domains about $200 and now worth $$$$$$—easy peasy gig
Squarely.com
MarijuanaGuy.com
MarijuanaDealer.com
RedNeckGuy.com
GXNX.com
Zmmr.com
amishweed.com
cloudengineer.com
soundpain.com
gunresponsibility.com
meatmeatless.com
ecloudhosting.com
all domains reg using GD 99 cent coupon. Cheap and have $$$$$$ offers
@ Bulls.
Now we know why you are called Bulls. Those domains are pretty worthless. If you sell any (any I wish you luck), please provide proof of the sale and I will applaud you.
I disagree. About half that list will eventually sell for $1K+, with three of them being $10K+ names. Were you being serious or trolling this guy?
Agree with Doc. Some good names he has.
It is still excellent advice, thanks for sharing!
I particularly like this:
“do your homework, make a plan, stick to a winning plan, adjust a losing plan and work really, really hard.”
-Bob
Skill, with a bit of luck.
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