Domaining MBA Monday: Are You Buying Domains For The Sake Of Buying Domains?

Domaining MBA MondayHello, happy Monday, and welcome to Domaining MBA Monday here on MorganLinton.com. Today I wanted to talk about a problem that just about every Domainer has when they’re starting out, an incredible focus on buying domains with a strong lack of focus on turning those domains back-into cash at a profit.

Here’s the thing with Domaining. It can be unbelievably inspiring to see a domain that you want to buy, go through the excitement of bidding on it and then getting the domain into your account. Ah the smell of success, right? Wrong.

This is how the problem starts and it only gets worse over time. What I’m talking about is a focus on buying domains without the follow-through of a solid plan for selling or monetizing the domains after purchase.

Let me be clear. I’m not saying you should immediately stop buying domains, or that you should lose that wonderful feeling you get after nabbing the name you want in an expired domain auction. What I am saying is that you should make sure you are seeing the kind of results you expect before you keep buying.

Here’s a simple practice that you should follow if you find yourself guilty of spending more money than you’re making.

  1. Make a list of every domain name you buy along with when you plan to sell it and how much.
  2. Every time you go to buy a domain, look at your list, are you adding to the list or replacing one that sold according to plan?
  3. Buy only if you’re consistently selling what you buy, otherwise take a step back and focus on selling what you have.
  4. If you can’t sell what you have, take a deeper look at what you’re buying. Are you really buying good domains or just domains that sound good to you?
  5. Keep buying if you’re consistently moving names, seek advice from a more seasoned Domainer who will give you honest feedback on your portfolio if nothing seems to sell. It’s better to find-out that your portfolio stinks sooner rather than later.

Like most businesses, you’ll typically start-out making mistakes, losing money, and feeling like a complete failure. Also like most businesses, if you take the time to learn from your mistakes and through this change your behavior, your business will also grow and change over time.

If, on the other hand, you point the blame elsewhere and say things like, “I got into Domaining too late” or “all the good domains are taken” then you won’t learn from your mistakes and you’ll probably walk away with your tail between your legs. Amazing domains are bought and sold every single day, your goal as a domain investor should be buying amazing domains that sell, not domains that you think are amazing and hope will sell.

Don’t be afraid to be wrong, just be afraid to spend too long finding-out you are wrong. The sooner you know the sooner you can course-correct and get moving in the right direction!

{ 4 comments… add one }

  • Joe September 23, 2013, 5:53 pm

    Thanks for your honesty , thanks also to know your past mistakes and not fall us in them.
    I am one who buy domain names to my being in good or very good time , I’m one who has not reached deeper into the sale of these domain names Tlds , for a conviction to have read before I met you that most old, become real estate .
    This market is complex, this market you must know before buying your first domain name , like all markets before entering they must study and analyze what you find good and bad , and then decide whether to enter or no.
    Many of us have entered this market to make easy money , this is what I painted many great domainers that eventually is true, but the reality is that they be in their own market and have around if you sink still good you hire a domain registrar and if you keep giving over in favor of him who has contracted to harm you in the darkness of a black market to other innocents who come from a distant luhgar bellonging entrusted to one or two domain names for later Tlds eventually realize this within a mousetrap out only benefited the company register and ICANN accredited .
    This does not happen with the house to live in the same place as them , not you to be accomplices of evil they may do to others , each go their own risk, rather than risk finding him self acoga , but I can not find it is that the foreigner abroad have to be different for the purchase, register, pay and renew until you want because it meets all the rules with our approval to the Terms and Conditions, Privacy Policy, legal Privacy we stay away and do this like you, to be in your own market, is a kind always say myself.
    What happens to me does not happen to you , or Rick , or say some names Elliot only happens those who do not have representation from the beginning , then all changes are in place in their market and are of their own with good or bad domain name TLDs always succeed.
    I can not sell what they themselves be yours for what I have for years is very good not blindly buy the more than 20 domain names have to be old Tlds continue even in his path between the large but not to make anything with them because the factual power of the big registrars do not own what is yours is mine and if you would not happen since you be in your market or rather in their own country .
    I be different and you know me well . I just wrote it as a comment on his blog post if it thinks fit for freedom thanks , see you soon .

    Reply
  • Leonard Britt September 23, 2013, 6:15 pm

    Yes, outside the domain space, companies will often have a purchasing function but also have a sales/marketing function and a finance/accounting function plus others. Domainers do tend to focus on the buy while overlooking cash flow & marketing.

    Reply
  • John September 24, 2013, 2:51 am

    Thanks for this post, do you do any keyword research before buying domains? I use Market Samurai and I always try to find good free domains, but I´ve never bought a taken or expired domain yet.

    Reply
    • Morgan September 24, 2013, 9:19 am

      Good question @John. Yes, I typically do keyword research before buying a domain, for me the more data I can get, the better. Market Samurai is a great tool, you just have to make sure to buy on more than keyword data as this only tells part of the story. There are plenty of domains out there with nice search volume and CPC but little sales potential, it’s about putting all the factors together when making a buying decision.

      Reply

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