Who Said Domaining Was Easy?

Lately I have been contacted by more and more people struggling to get started with Domaining. I can’t tell you the number of times people say to me – “I thought Domaining was supposed to be an easy way to make money online!”

My response to that usually is – “Who said Domaining was easy?” In my book I myself tell the reader that Domaining is not a great way to make money by doing little or no work. It is, however, a great way to generate passive income and develop a strong investment portfolio and income. However if you think Domaining is easy, you’re in for a surprise.

For those who don’t know I’m, an Engineer with a Masters from Carnegie Mellon University. As an Engineer I’m used to hard-work and I’m also good at taking a big problem and breaking it down into smaller digestible chunks. In the CS world this is known as a “Divide and Conquer” algorithm. I divide the domain investment process into three main smaller processes:

  1. Acquire the Domain (buy a domain with good monetization potential – use Google searches and CPC)
  2. Develop the Domain (create a content-site on the domain with multiple forms of monetization)
  3. Monitor monetization and continue to improve over time

Notice there isn’t a step 4 where I Sell the Domain? That’s because my domain revenue is the foundation of my business…not sales! This is my approach to Domaining – many people have different approaches – and the great thing is you can pick the approach that is best for you!

Now back to the main point in my post – Domaining is a lot of work. If you look at the people who are successful in this industry – they work hard, I can assure you that Rick Latona, Rick Schwartz and all the other top-dogs in the Domaining world haven’t spent their days vacationing – they have been working hard and that hard work has paid-off. Domaining is an industry, not a get-rich-quick scheme and if you want to make money, you’ll have to put in the time.

You have to develop YOUR OWN strategy for making money with domain names and then work your butt off bringing your ideas to fruition. Want to sell domains for a living? Start spending at least 3-4 hours a day actively finding buyers for your domains. If you’re just waiting for people to contact you don’t be surprised when the money doesn’t come pouring in! Want to make money by developing your domains? Set a schedule for building at least five sites a month and keep-up with your plan all year. So many people just build a few sites, don’t see revenue right-away and then get discouraged and quit.

I can buy a domain and generate double or triple what I paid for it within a few months. In some cases that same domain can make hundreds of dollars a month with no additional work done on my part. I found what works for me and I’ll tell you this – it’s not easy, it takes time, and I’m up late at night working while you might be watching TV or sleeping.

So for everyone reading my blog that is just getting started with Domaining hear me loud and clear – “There is money to be made with Domains, but it’s going to take hard-work!” First decide HOW you want to make money with domains, then devote all the time you can to doing it!

{ 11 comments… add one }

  • brian k May 10, 2010, 12:35 pm

    Some domainers are vacationing full time.
    I hope that will be me in the next few years.

    Reply
  • Mike Sullivan May 10, 2010, 1:04 pm

    I’m fairly new to domaining myself. I never thought it would be easy. I have found that the best way to get started is to read all you can, get on the forums, talk to people and roll up your sleeves. There are several different strategies used by different players. Find what works for you. It won’t be easy, but if you enjoy it, then it doesn’t matter.

    Reply
  • Morgan May 10, 2010, 3:35 pm

    @Brian – I’m with you! However it will take hard-work to get there. Many of the Domainers that are vacationing full-time worked hard as well!

    Reply
  • Michael Cromarty May 10, 2010, 3:55 pm

    So how many hours a day on average would you say that you personally spend on developing your domains?

    As a beginner starting out in the last month I have found that it requires a lot of patience which I am starting to understand better.
    A few of your posts have helped me understand the idea of getting a good domain.

    Reply
    • Morgan May 10, 2010, 5:22 pm

      Now I spend 0 hours a day as I have a team of people that build-out my domains using the templates that I developed. Most of my time now is spent identifying which domains we’ll invest in and working on the many different projects we’re involved in!

      When you’re getting started make sure to give yourself at least one weekend-day so you can get an 8-hour block of time in. On a daily basis even 2-3 hours/day can make a big difference and allow you to reach your goals!

      Reply
  • Kevin May 10, 2010, 3:55 pm

    I really wouldn’t call domain investing “work” in the traditional sense. It’s a pretty easy career you can do from your home office compared to people that have to wake up on someone else’s schedule and schlepp to corporate world everyday and do the 9 to 5 treadmill.

    It was really easy obviously in the early days when the domain prospecting fields were loaded with gems and ripe for picking at bargain prices. Now you just have to devote more time to prospecting, be a good negotiator when you do find a nice domain to acquire, and more than ever you have to be a good business person to know how to make money from them in innovative ways.

    Reply
  • PPC Ian May 10, 2010, 6:28 pm

    Morgan,
    I couldn’t agree more! Domaining is definitely not a get rich quick scheme. If you want to make money fast, consulting might even be a better option. Domaining, however, provides a slow and steady path to passive income – a better path than real estate and dividend-paying stocks in my opinion. Passive income takes longer to grow than earned income but the long term benefits are undeniable! Great post!
    Best,
    Ian

    Reply
  • Wufuquan May 10, 2010, 8:36 pm

    Morgan,
    Completely agree. 🙂

    Reply
  • Lebo Kambule May 11, 2010, 1:05 am

    Hi Morgan,

    I just recently got in touch with you about one of my addreses that I’m selling funding.co.za ! Well I totally agree with you. I run a website development company, but my difficulty has always been making time to develop my own domains…. crazy! I’m now looking at selling them to try invest in stronger names.

    but yeah, its all about time put in!

    Cheers.

    Reply
  • Victor May 11, 2010, 5:28 am

    That is TRUE!!!!! Hard work is involved!

    Reply
  • Jim Holleran May 11, 2010, 9:26 am

    From 1998-2003, I made no or little money in domaining. It was very hard, max-out credit cards, marriage problems, doubters telling me they told me so. I had an MBA but I did not want to work in the corporate world.

    From 2004-2009, I have made over $XXX,XXX every year in domaining. I able to take vacations when I want, hang out at home with my 2 year old twins everyday which is most important, and happily married to the same wife I had problems with between 1998-2003 because of this business.

    Basically the steps I took between 1998-2003, starting to really pay off in 2004. I remember who of the top domainers in the world in 2000 after looking at my spanish .com’s told me the following “when the market catches up to your spanish porfolio” you are going do real well, so take a nap and tell everybody to screw off”. 100% true.

    It’s a tough business, but don’t quit, there is nothing like passive income and it can be done. Follow leaders like Morgan and you will do well.

    Thanks, Jim

    Reply

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