Hello, happy Monday, and welcome to another Domaining MBA Monday here on MorganLinton.com! Today I wanted to talk about a topic that certainly extends well beyond the Domain Investing world, what I’m talking about is finding a repeatable model. It can be all too easy to buy tons of domains and suddenly find yourself with lots of inventory that you can’t move.
The idea is simple yet is missed by so many new investors that burn through lots of money on domains with little-to-no liquidity. Prove to yourself that you can sell a certain type of domain before you go nuts buying in the niche. Here’s a real-life example.
Last year I had a guy contact me who had purchased a few thousand domain names, each started with the same noun, followed by another word. I don’t want to give away what word he used since I really don’t want to insult him in any way, but instead just use this as an example. So let’s just pretend the word was “Crush”, he had CrushWood.com, CrushBird.com, CrushToast.com, etc.
After spending a few thousand dollars on names beginning with “Crush” he started approaching buyers. His idea was that people would love the brandable terms and he could easily make a profit. He hopped on the phone, put ads in the paper, and went door-to-door, nobody was interested. Before finding a repeatable model he had jumped ahead and “assumed” that each of these names would be easy to sell so buying them in bulk was well worth it.
While more seasoned Domainers can do this since it is only part of their portfolio, new Domainers can get into trouble with this kind of thinking. Instead, just register five of these domains and see if they are as easy to sell as you think. Do they sell in the ranges you expected? Validate your assumptions and find a repeatable model, then if you find you were right, buy more, rinse and repeat.
So before going nuts buying domains that you think will sell like hotcakes, start with a few and prove it. Then, once you discover a repeatable model go forth and conquer!