Being a Domain Investor Can Help You Acquire a Domain Name

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I’ve found that many people don’t have an interest in selling their domain names to domain investors. Many seem to think they are either going to see their name re-sold for a huge profit or that they are getting a raw deal. I want to share some insight in when it might be advantageous to be a domain investor and how that can help you acquire a domain name.

More often than not, I buy domain names from people who have either never done anything with a particular domain name or have ceased operations on a domain name. These people tend to be happy to make money by selling names that aren’t making any money for them. Most don’t really care about the domain name after and are just happy to have made some cash for something that had basically been lying around.

On occasion, I will come across a domain name that is owned by a company in that particular field, but it is either not being used or it’s underutilized. These companies would be reluctant to sell their domain name to a direct competitor, as the money from the domain sale would pale in comparison to the potential lost business should the domain name be acquired and used by a competitor.

However, if they see that I am a domain investor, they might be more willing to let me buy it, knowing that I am probably not going to be able to directly compete with them. They may or may not realize that I will probably sell it down the road, but they aren’t dealing directly with a competing company that is going to put the name to good use.

The next time you are buying a domain name that is owned by a company that would be considered an end user, you might want to make it clear that you are a domain investor and not a competitor.

21 COMMENTS

  1. Investors buy low and sell high. I find the part about companies not realizing you will sell it later and to a possible competitor at a profit hard to believe.

  2. If you make it clear to them that you are a domain investor then automatically they are going to value the name higher because an investor sees more value in it then they do and of course will equate to a higher purchase price or they will hold on to it thinking it has massive value.

  3. I get asked the same thing regardless if it’s a company or individual owner. I tell them I’m an investor also but like Todd mentioned I don’t know if telling them you’re an investor is a good idea per se. They know investors buy low and sell high so the price you are paying for their domain is most likely less than what it should sell for.

    • Isn’t INVESTOR supposed to make money by buying low and selling HIGH?

      You told them you just gonna develop the site and won’t sell to the competitors….are you saying you will turn down 1000000000$ plus sex and vodka if put in front of you?

      I guess Domainers will do anything to make a buck!! lie, cheat steal murder ransom etc etc etc

    • You either misread or misinterpreted what I wrote. I would never tell someone that I wouldn’t sell a domain name. If they ask what I do, I would tell them that I am a web developer and domain investor. I wouldn’t make any promises on my plans for the domain name, and I would never buy a domain name that had restrictions on resale.

  4. The only reason I mentioned it is because I googed sales template letters and the endless pool article came up. I was just curious if you sold it since then. I probably should have checked Domain Tools.

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