Starting out in any industry can be a complex and overwhelming task, and the domain industry is not an exception.
Newcomers to "domaining" often make the same mistakes their peers made years ago. Every "domain newbie" in the field seems to fall for the same "amazing opportunities" that are in fact fallacies.
Here's a quick guide to help you stay clear of making these costly mistakes and achieve financial success by making better domain name investments:
Domain fallacy #1: You can make money and profit from domain names extremely quickly and easily.
Presenting any feat as "effortless" and "quick" is the easiest path to a destined failure. While there is no single recipe for success there are many things that can mess up the recipe. Hard work, commitment, and a willingness to become educated and open-minded in what constitutes "domaining" are all necessary if you truly want to succeed.
Domain fallacy #2: Only .com domains can generate profit, and every exotic TLD is a sure money-maker.
Part of the education for domain investors is the mantra that .com is king. There is no doubt that if there were no other top-level domains (extensions) other than .com, the struggle would be real: there are only so many words and combinations thereof, and not having alternate options would be disastrous. The use of other TLDs, ccTLDs, and gTLDs fully complement the rule of .com as the top domain destination. At the same time, investing heavily in alternate TLDs can poke a large hole in one's budget: most of them cost more than .com to register and renew.
Domain fallacy #3: Brands, trademarks, and projects of other companies are "game" to register as domain names.
The quickest way to financial loss is to jump into the fire pit: trademark violations. Companies these days are very protective of their brand and utilize tools that issue alerts when you register obvious trademarks. Avoid such registrations and secure your peace of mind: trademark infringements can become costly cases beyond just the loss of your infringing domains through the UDRP process.
Domain fallacy #4: Domaining is a gladiator's game and you can succeed going at it alone.
Any game, and any industry, depends on relationships and alliances. Many domain investors tend to alienate themselves from their peers, unwilling to bend and share knowledge. The road to success is paved with many mistakes, and acknowledging—and correcting—failure, is how we progress and elevate our business model. Communicating with other domain investors about your strategy will make you a better player, and you can also benefit from partnerships and joint ventures that come along the way.
Domain fallacy #5: Pricing your domains is based solely on instinct, or solely on comparative domain sales (comps.)
When you follow one pricing method, you're neglecting the opportunities presented by the other. Research your domains for potential buyers, and decide whether your assets can be listed for sale with a fixed price, or via an open offer. At the same time, research what other, related domains ended up selling for. The truth is somewhere in the middle: follow your instinct, but learn from the statistics of the game.
Domain fallacy #6: Neglect development and only focus on domain investments.
Your domain assets that can be developed into active projects can become money-makers beyond your initial registration or acquisition cost. Some domains can be rolled into service providers, informational portals, or affiliate/drop-shipping projects, with less effort than you might think. Choose your most suitable domains for this task and engage with other investors if you're seeking partnerships. This is how joint ventures are born.
Domain fallacy #7: You can hold domains forever, someone will come along the way and buy them, eventually.
Assuming you formed a company that leverages your domain acquisitions, make it a habit for an annual review of your entire portfolio. Don't let domains that have lost their initial magic drag you down financially via renewals or other fees. A smart domain investor recognizes the moment when it's time to drop domains that no longer have any potential for sale or development.
Conclusion: Newcomers and seasoned domainers alike must remain in full education mode, and preserve their resources all while expanding their alliances. By keeping alert about advancements in the domain industry, you will succeed - as long as you put in the time and effort required.
The information contained in this blog is provided for informational purposes only and should not be construed as an endorsement, advice, or opinions from Uniregistry on any subject matter.