Three Quick Tips For New Domain Investors

So most of my posts are incredibly long and I really want to make sure that amidst the essays that seem to flow out of me each day, there’s also some short and sweet posts that you can read and learn from quickly. About 50% of my readers are new domain investors so I thought, why not put a quick post together for all of you. I frequently get emails from new investors asking how they can get started avoiding some of the common pitfalls new Domainers fall into.

Below are three quick tips for new investors that will hopefully help you avoid some of the most common mistakes.

  1. Avoid the domain buying spree – this is #1 for a reason. The biggest mistake I see new investors make is buying tons of names before they know the market. Take your time to learn about the space, find out what you can sell, what you can develop, what path you want to take. Then buy carefully making sure you know exactly how every name you buy will make you more money than you paid for it.
  2. Pick a path, buy/sell or monetize – if you’re just starting out the entire domain space can be exciting. The key is picking a path and staying laser-focused to learn how to succeed in one part of the industry before moving to another. Decide whether you want to buy and sell domains, or buy and monetize domains and stick with one path until you are successful.
  3. Make sure you get advice from the right people – there are a lot of books, videos, and blog posts out there about domain investing. Make sure you know and trust your sources. There are plenty of people out there making more money off of education than putting what they are teaching into practice. Do your research so that if you’re taking advice from an article or eBook you know that the person writing it has done it themselves.

Feel free to add your own tips below!

{ 5 comments… add one }

  • Joseph Pippin July 18, 2012, 7:02 pm

    Morgan,
    You’re right on the money with tip #1. I was guilty of the ‘domain buying spree’ when I first got into this industry. I wanted to accumulate as many domains as possible in a very short time. I bought domains that sounded good and because they were available. I didn’t know where to begin to do research on the domains I was buying. I’ve let a lot of those dumb domains go and concentrated on a usable portfolio with research to back each and every one up. The whole point is not to waste thousands of dollars on something you don’t understand.
    In as far as staying on one path or the other. I have found that it is best to be a buyer and seller. However, sometimes you may get lucky (after good research, of course) and land that special domain name that just can’t be past up in as far as monetizing it. The only problem is, like you infer, that it can take away from ‘focus’ of another path and be very time consuming. Overall, your tips are again, right on the money. Thanks for sharing with us in a concise manner!
    Joseph

    Reply
  • d.r. July 18, 2012, 8:19 pm

    Are there any specific books,or videos that you suggest new domainers should purchase? Also, are there any specific people in the domain industry that new domainers should learn from?

    Reply
  • Uzoma July 18, 2012, 9:29 pm

    You forgot the best advice of all:

    Run! Go find a real job.

    Reply
  • Aladdin Domains July 19, 2012, 1:00 am

    Hi Morgan.
    These are good reminders, thanks. Would you, at some point, post a step-by-step walkthrough of selling to an enduser? Finding potential buyers, a typical sales letter and phone script, is it easy to use escrow (if so, how exactly does it work) or is it better to use an intermediary like Sedo (I have sold through Sedo but the commission is a factor), a typical sales agreement wording and how do you both sign it (via internet or snailmail?), through to how exactly does the push/transfer get handled best – and anything else I’ve missed!
    I know it’s a tall order, but any input would greatly help Morgan.
    Many thanks and have a great day.
    Paul.

    Reply
  • Morgan July 19, 2012, 8:06 am

    Thanks @Joseph, much appreciated, I’m glad this article hit home for you!

    @d.r – yes there are, feel free to shoot me an email through my contact form and I can send you some great recommendations.

    @Paul – thanks for your suggestion, let me see what I can put together!

    Reply

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