There are a whole lot of sources to learn about investing in domain names, much more so than years past. There are individual bloggers (and people who comment on blogs), websites that discuss domain names, and various people on domain forums. There are also various tools to track what some of the bigger domain investors are doing with their own portfolios.
With all of this information available to domain investors of all stripes, it’s important to remember that we all have different investment goals and strategies, and you need to keep that in mind when you read about various transactions and tactics.
When I hear about some of the most successful investors making huge sales, it gets me excited. It’s thrilling in a way to hear about a $100,000 offer that was turned down and later turned into a $250,000 sale, all for a name that was bought at auction for a couple thousand dollars.
That said, many of us couldn’t afford to gamble on a $100,000 offer. We would be happy with a 40x ROI and would move on to the next domain name. It’s great to read advice and hear how others maximize their returns on domain sales, but for many of us, that isn’t reality.
We all need to be mindful that our business models are very different from each other, despite the fact that we operate in a small industry. Some of us make the majority of our revenue through parking, some through infrequent (but large) domain sales, some through frequent (but small) domain sales, and others through web development or hybrid models. Our business models may look similar, but they are very different.
When you (and I) read about people using different tactics and strategies to buy, sell, and monetize domain names, we must also look at the person who is discussing these ideas. Their business model may appear to be similar to ours, but in reality, it’s a very different model that works differently.