Hello and welcome to Domaining MBA Monday! Today I wanted to talk about an issue than many new investors skim past too quickly, finding a repeatable model. Of course this is true beyond Domaining as with any business you’d typically like to find a repeatable model for making money before investing a ton of money into your idea.
Many new Domainers start out by registering a ton of related domains that they think will sell for a fortune alone, or as a set. Maybe the word “Hotels” is appended to some two or three-word combination, or maybe you buy a bunch of names that start with something like “LawyersIn_____”. The point is you investing in a category of domains that you have no history developing or selling. You’re hand registering these because the excitement has set in, wow, they’re all available! That’s not always a good sign, in fact it’s rarely a good sign. While many pro Domainers do hand register some real gems, they tend to be finding those in which they already have a good track record selling or monetizing.
So start small, if you find that 50 domains are open all in a related space, try seeing if anyone is interested in one or two of them. If you buy CityName-Lawyers.biz and think that no end-user will care if there’s a dash in the domain, find out for yourself before buying the top 300 cities in the word -Lawyers.biz. The idea is simple and would have saved me a lot of money when I was starting out, find a repeatable model first. Once you sell three CityName-Lawyer.biz domains for the price you were expecting (or higher) then go ahead and buy 20-30, not 300 but a bigger chunk so you can test with a larger sample size. Sell 30, buy 100 more, you have a repeatable model and are making money so you are basing your buying decision on real data rather than an assumption.
Remember, every 50 domains you register that don’t make you a dime cost you $500/year in registration fees. Every 100 names is $1,000 a year. You get the picture. Find a repeatable model before going on your buying spree, you’ll make money along the way and find yourself glad that you found out a certain trend only existed in your head before you buy 500 names that follow it.