Domaining vs Investing

Started by natmir, Jun 20, 2022, 12:12 PM

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natmirTopic starter

Hello everyone! I'm new here but I've been kicking the domining can down the road for a better part of a month now in terms of research and self education.

I'm an investor. We own storage facilities, businesses, commercial/residential real estate. I have experience in web development and basic programming.

The more I read, the more domaining seems less like investing and more like gambling. The whole hand registering seems like trying to find a needle in a haystack. I keep reading that most new folks to domining will never be able to sell their hand registered domains etc. I understand there's learning curves and in order to learn, generally you have to spend/lose $$$.

Another thing I've noticed is many, many, many folks trying to get into this have no budget and are trying to find the quickest way possible to make money and want to spend as little as possible.

I guess what I'm trying to say...is there a difference in HOW I should move forward with educating myself on domining? I'm not particularly interested in hand registering domains and trying to find one that's worth a few hundred bucks...but I understand that perhaps that's recommended for someone who Is new to this.

In investing we mostly talk about cap rates, interest and ROI. I can generally run figures and produce a rough expected ROI. I'm struggling to find out how to do this with domaining.

Maybe I'm just too new, maybe I need to slow down, maybe I don't even belong here because domaining is not for me. I'm absolutely not looking for another job or a side hustle...I'm looking for a passive/semi passive investment strategy to add to my portfolio. I have a good budget. Our average RE returns are 8-15% but I don't even know how to begin to calculate a projected roi with domains if say I invest $25k.

You other investors, what strategy did you follow when it comes to domaining?

I'm open to criticism, opinions, suggestions, education resources...anything really.
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Ю-Мастер

#1
Domaining compared to a lot of other businesses is much more on the speculative end. Often hard pinning any kind of numbers / definitive ROI...to a good extent its a waiting game

The beginners section at DNray  is helpful...scroll and read. With a $25k budget, what I will say is that gives you a good leg up to buy quality, when you do so. IMO
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Sereda_V_V

It's gambling for the inexperienced, or those dipping a toe.

It's investing for those with years behind it, a neat portfolio and a solid budget. With consistent Y2Y profit % = definitely NOT gambling.

Math is not that great as many expect at first... unless you become a top investor. With $25k total and a good hand /experience, on average assuming low to mid xхxx range sales and the usual 1...2% sales ratio per annum, you might make $10-$15 k profit per year.

You need 6-fig investment in order to make significant money with this. Or mid-5fig but a ton of great experience.

It's far harder to enter in comparison with other fields. Don't underestimate the learning curve. Also this is probably NOT the best time to start, since sales are going down (edit: and will continue to do so.) But rather the time to buy serious names and wait a few years, which presumes you have the experience already, otherwise chances are you'll buy overpriced or bad domains.

Note: I netted $14K in loss in my first year in this, and also a small loss in the second year.
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plccourses

Cybersquatting as a kind of money investment has a number of significant advantages.

Investments in domain registration do not require serious capital. At the initial stage, it will be enough for a cybersquatter to invest quite a bit of money in domains. For example, registering a domain in some zones today costs an average of $2 per year. Therefore, if you do not know where to invest $20, then cybersquatting will be an excellent solution to this dilemma. After the first sales, you will be able to reinvest part of the profits in the registration of new domain names.
Cybersquatting can be considered an investment with passive income. In practice, a cybersquatter does not need to perform a large number of actions and look for a potential buyer himself. You just need to register the selected domain in your own name. Then all that remains is to place an ad for sale on it with your contact details. In addition, the domain can be put up for one of the auctions that are held on specialized websites.

With the right and creative approach, domain trading can bring an excellent income to an investor. However, do not think that domains are very often sold. At the same time, a successful sale of just one domain can recoup all investment costs and bring profit.
Even those domain names that have not yet been sold can bring income. Everything is extremely simple here. To do this, the cybersquatter places suitable advertising on them. The amount of income will directly depend on the success of the chosen name. In any case, it won't be too much money, but it will be enough to pay for the next domain name extension.
Cybersquatting has practically no risks. Of course, this statement is true only for successful domain names. After all, you can always find a buyer for them.
Profitability of investments
There are several textbook examples illustrating the high potential profitability of domain trading. However, it is worth noting that the largest revenues were brought to the transaction for the sale of domains in the USA and Europe. However, no one can forbid us to register domain names in English in the com zone.

The most successful deal in the history of cybersquatting was concluded in the 90s of the last century. Then the domain name sеx.com it was resold for 14 million US dollars. Domain business.com it cost the new owner 7.5 million.
Investing in domain names or cybersquatting can bring an incredible return to an investor. Given the size of investments, anyone can try their hand at such investment activities.
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