Nearly a year ago, I left the corporate world to become a full time domain investor. I didn’t really know much about running my own business in a full-time capacity, but the time was right, and I’ve never looked back nor have I regretted my decision. I’ve been fortunate to make some good business decisions and have had many more good days than bad. While being an independent domain investor may look like the perfect lifestyle, there are many things to consider before committing to it.
If you aspire to become a full time domain investor and/or developer, there are some things you need to take into consideration before making the jump:
- Health insurance is expensive
- If you make $100,000 profit on a $150,000 sale, you will owe something in the ballpark of $35,000 in taxes. If you reinvest $125,000 of that sale, you are in the hole $10,000.
- Paying estimated taxes 4x per year can be a burden and require you to pay upfront based on your prior year’s earnings
- Working alone all day without office mates or cubicle buddies can be lonely
- There aren’t many people who can give you completely unbiased advice.
- Every domain you buy (especially for a large sum of money) can materially impact your business
- You always need to keep cash in reserve for unexpected expenses or domain names that become available to buy for a good price
- It’s important to consider business insurance (which is expensive)
- Development takes time and costs a lot
- There will always be issues and problems when you develop. Expect to have unexpected added costs and time issues
- It’s important to have a good family and friend support network to help you up when you are down and to help you celebrate when you have success
- You will frequently want to talk about your business with your friends since you can’t chat much with co-workers, but your friends won’t always want to talk about domains with you
- It’s important to stay humble. You might make a $100,000 sale one day, but make an unwise investment the next day.
I have truly enjoyed the year so far, and I am glad to be attending another TRAFFIC show. There is still money to be made in the domain industry, but it does take quite a bit of work. Although I don’t work constantly from 8am-11pm, I am on my computer most of the day. I love what I do, but I’ve learned a lot of things about the industry this past year and about myself. I don’t think there is anything I would change.