Follow the Data

One of the best ways to know what domain names to buy is to learn what domain names are selling and why they are selling. It is good to read the weekly DNJournal sales report to see the most valuable domain name sales, but buying domain names that are similar to what is selling at that end of the market is difficult, very expensive, and risky. Knowing what is selling in the middle of the market may be the best education for the majority of people who invest in domain names.

Yesterday, Ed Emery shared some background about one of his recent SquadHelp sales:

I sold my first domain #name on https://t.co/FrEqVugP7t https://t.co/NmnX5LHxff for $2299 USD (6-month payment plan) I hand registered the name 4-6-2020 after noticing a similar “north” name being sold on SH & few others being listed as well, a little data paid off! #domains pic.twitter.com/UfgMXZtY7k

— Ed Emery (@branddrip) July 16, 2020

Ed noticed a trend with domain names with the “north” keyword in them selling, and he was able to hand register OuterNorth.com, which he sold on a payment plan. Ed did his research on domain name sales, and it seems to have paid off. I know nothing about the trend Ed noticed, but I would bet there are many similar trends if people spend time analyzing domain name sales.

Different domain name sales platforms and sales venues report their sales in different ways. Some, like Sedo and BuyDomains, report their sales to NameBio. Others, like DAN and SquadHelp, share recent sales on their websites. DAN and GoDaddy will be publicly reporting

Understanding what domain names are selling and for how much is one of the most important aspects of being a good domain investor. Likewise, understanding why a domain name is similar to other domain names is also a critical component of investing in domain names. Just because a company paid $2,299 on a payment plan for OuterNorth.com does not mean OuterSouth.com or InnerNorth.com are worth anything as investments.

Congratulations to Ed Emery on this sale. I appreciate his sharing and offering this additional insight about his purchase and subsequent sale.