Hello, 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.
- Make a list of every domain name you buy along with when you plan to sell it and how much.
- 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?
- Buy only if you’re consistently selling what you buy, otherwise take a step back and focus on selling what you have.
- 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?
- 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!