Domaining vs. Investing

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

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natmirTopic starter

Hello, I am new to this platform, and although I have been researching and educating myself about domaining for a month now, I am still new to the concept. As an investor, my experience lies in owning storage facilities, businesses, commercial/residential real estate, as well as web development and basic programming.

Based on my research, it seems that domaining is less like investing and more like gambling. Hand registering domains appears to be a difficult and fruitless task for many newcomers, and those without a budget are attempting to make quick money with little effort. I would like to educate myself on domaining, but I'm not sure if hand registering domains is the best approach for me.

As an investor, I am familiar with cap rates, interest, and ROI. However, I struggle to apply these concepts to domaining. I am looking for a passive or semi-passive investment strategy to add to my portfolio, but I do not know how to calculate a projected ROI with domains if I invest $25k.

I would appreciate any suggestions, opinions, or educational resources that other investors can offer regarding their own domaining strategies. Thank you.
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Ю-Мастер

Compared to many other businesses, domaining is highly speculative and it can be difficult to accurately project any concrete ROI figures. Success often involves waiting and observing.

The beginner's section at DNray is a useful resource that I recommend reading through. With a budget of $25k, investing in quality domains can certainly give you an advantage. This is just my opinion.
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Sereda_V_V

For inexperienced individuals or those just testing the waters, domain investing can seem like a form of gambling. However, with years of experience, a solid budget, and a tidy portfolio, consistent year-to-year profit percentages indicate that it is not gambling. While the math may not be as simple as initially thought, becoming a top investor could lead to significant profits of $10-$15k per annum with a $25k initial investment. It takes a six-figure investment or a large amount of experience to make substantial gains in this field.

The learning curve is steep, and it is not an ideal time to start as sales are declining. Investing in serious names and waiting for some years is recommended, but this assumes you already have experience; otherwise, you may end up buying overpriced or bad domains. Note that the author incurred a loss of $14k in the first year and a small loss in the second year.
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plccourses

Cybersquatting can be considered a lucrative investment with many benefits. It requires little initial capital, with some domains costing just $2 a year to register. It can also generate passive income as the cybersquatter simply needs to register the domain and advertise it for sale or place it in an auction.

While not all domain names are frequently sold, one successful sale can recoup all investment costs and bring significant profit. Even unsold domain names can generate income through advertising. The potential for high profitability is demonstrated by successful examples such as the sale of sеx.com for $14 million and business.com for $7.5 million in the 90s. Anyone can invest in domain names and try their hand at cybersquatting given the low investment cost.
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