Domaining MBA Monday: Prove Your Assumptions Before Buying In Bulk

Domaining MBA MondayHello, happy Monday, and welcome to Domaining MBA Monday here on! Today I wanted to talk about something I’ve seen happen over and over again to new Domainers. Tell me if you can identify with this. You’re up late at night and an idea pops into your head, you just thought of an entire series of domains you can buy and flip for a huge profit. So you start hand-registering domains left and right, typically these domains looks something like [CityName], [StateName], [Keyword], etc..

For this example let’s suppose that you had an idea that financial planners would want a geo-targeted domain to represent their business. You head over to your registrar and low and behold is available! You jump for joy and begin madly registering more domains. Before you know it you own,, the list goes on.

Soon you own maybe 30 [CityName] domains. Your logic is simple – you only paid $300 for 30 names, sell just one of them for a few hundreds bucks and you’re profitable. It’s a no-brainer right? Wrong.

Here’s the problem, you bought in bulk before proving your assumption. You start reaching out to financial planners in different cities, after a month of emails and phone calls you have no buyers. That doesn’t phase you, you’re sure someone will want them, so you wait. Now a year goes by and it’s time to decide if you’re going to renew all 30, so you do, now you’re in for $600.

Another year goes by and maybe you sell a few to other Domainers for $50 – $100/each so you’ve recovered maybe $200. Another year rolls by and this time you renew the 26 you have left. As time goes by you keep renewing, keep hanging on, but deep down inside you know you were wrong, you did not prove your assumption and now you’re stuck with a set of domains that you can’t sell for a profit but keep renewing because you’re sure your big break is just around the corner.

Do you see the problem here?

Now I’m not saying that buying domains in bulk like this is a bad investment, heck, sometimes it’s a great investment and in my example above you could very easily find that you can sell for $2,500 and boom, you’re profitable and you buy even further in.

My point is, you just don’t know. What you start with is an assumption, it’s always better to prove your assumptions before buying in bulk in something you think has incredibly potential. Otherwise you might just end-up with a whole batch of names that you renew year after year hoping that some day you’ll prove your assumption right. In the end, you usually end-up wasting hundreds or even thousands of dollars on domains that you don’t sell and keep renewing year after year.

If this sounds like you, let this post be your wake-up call. Before you buy in bulk, prove your assumptions. It might sound simple but emotion easily takes control of so many domain buying decisions. Get emotion out of it, focus on data and only buy once you are certain you are buying domains you can sell.

{ 3 comments… add one }

  • Braden October 28, 2013, 8:54 am

    Good post, Morgan. We’ve all victims of our own “great ideas”. I’m helping two clients unload portfolios of 7000 and 3000 domains from doing this very thing. I hope your readers heed your advice. It’ll save them a lot of money, time (and a bit of pride).

    • Morgan October 29, 2013, 9:00 am

      Thanks @Braden and great of how important it is to prove your assumptions before buying in bulk!

  • Joe October 28, 2013, 6:01 pm

    Well this post for those who begin studying for domain investor.
    I never buy in bulk whenever first know the tools keyword search to see if the same room with a competition low, medium, high and many users globally and locally in U.S. search at the end of a year and every month.
    The result to be optimal in many cases if not the vast majority have good keywords registered, but my problem is not going to the right place for your country registrars.
    At the end of this post writing well: only buy once you are sure you are buying domains that can be sold.
    I’ve always bought for one reason or another that knowing which keywords to succeed at convertirise TLDs in domain names, the excitement and pride I have since I started, but I run with four ICANN accredited registrars two or three ( One is reseller, thinking it was legal in what we know as accredited company, is not it belongs to another large) in U.S. and two of them outside and inside U.S. that are pure scam and be of those who most trademark name and take into your country.
    They have the power and law in their favor they can do what they please and gain economically what is mine and I can not see any of this money, I should do them a Christmas gift so they are happier or stick a shot without a will because even with this last charge anything my heirs. That is to sell my life to anyone and lose my pride. No thanks. I born to fight and win and I will, with my strategy and course, domain investor..


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