Every day, someone new learns about the business of domain investing. There are blogs, forums, ebooks, marketplaces, registrars, registries, brokers, consultants, advertisements, and many other sources that share information about domain investing. It is much easier to learn about buying a domain name today than in years past.
The lure of investing in domain names is strong. Some people see easy money with little management necessary, and they are immediately intrigued. They see how easy it can be to purchase a domain name, and before they know it, they’ve registered dozens. Oftentimes, these domain names don’t really have commercial value, but it’s so easy to buy a domain name and it makes sense to the person buying it.
Unfortunately, there is a high likelihood of failure. Buying domain names that aren’t worth anything to another party is a quick way to deplete a bank account. There is an endless supply of domain names to buy and register, and knowing what to buy is the most challenging aspect of the domain investing learning curve.
I’ve seen many people cite the new gTLD domain names as a reason that “newbie” domain investors will lose money and go broke. Every day, I see .com and .other domain sale listings and sale solicitation emails that have domain names I can’t imagine why someone even registered let alone trying to sell for more than registration fee. There is an almost limitless supply of .com and other domain names. There is a limited amount of domain names that have commercial value as is.
There is certainly the potential to make a nice living from domain investing, but there are also plenty of opportunities to fail. Like every other class of investment, research must be done before investing. No matter whether a newbie is buying .com, .net, .org or new gTLD domain names, there is a good chance of failing and going broke.