At a high level, domain investing appears to be a simple money making activity. Buy great domain names at good prices and sell them profitably to buyers who want to build businesses on them. In practice, profitable domain investing is a capital-intensive business with considerable nuance.

This morning on Twitter, I came across two very good pieces of advice new domain investors should consider.

The first is from AbdulBasit Makrani:

One unfortunate speed bump and occasional roadblock I encounter when closing deals is the KYC requirements at Escrow.com. Oftentimes, it can be a minor inconvenience to get the other party verified. Sometimes, particularly when dealing with large corporate entities, it becomes impossible and it can complicate a deal at a critical time.

Let’s say I am selling a domain name to Example Company, a multi billion dollar organization that is traded publicly. At closing, I often deal with a senior legal counsel or CTO to paper a deal and close it. With the Escrow.com KYC requirements, not only does Example Company need to be KYC’d, but the individual closing the deal also needs to submit documents. Getting someone who has no vested interest or benefit from a deal to submit personal ID and documents has been problematic.