These days, I have been spending quite a bit of time seeking out domain names to buy. It’s relatively easy to buy inventory-quality domain names, but I am almost always looking for good deals on excellent one word .com domain names. The toughest deal for me to pass on is a great one word .com domain name priced at a very reasonable (but) end user price point.
In most cases, these domain names are priced fairly for someone to purchase it to use, but they are too expensive for me to purchase as an investment. I would be asking around the same amount or more if I owned the asset, but there is not enough margin for me to risk my capital.
I am looking at several such names right now and my mind keeps going back to them because they are great, but there is not enough room to make a good enough return on my investment. Yes, these domain names could go up in value, but I don’t wish to tie up six figures on individual domain names when I am paying what I believe is the full and current market value.
When it comes to these types of domain names, some people might ask if they can broker the domain name for a commission. Perhaps the seller would even allow the broker to increase the price a bit to get more for the domain name and compensate the broker. This strategy might work since it has already been established that the owner is willing to sell the domain name and that the pricing is reasonable enough.
I have no interest in being a domain broker, so that isn’t really something I would ever do. In addition, names in this category are names I would consider buying in the future if the market appreciates but the price remains the same. I have definitely passed on domain names only to return to them later when the value has increased. Unfortunately, I usually find out the domain name was sold in the interim.
There’s a fine line between overpaying to secure a special domain name and overpaying by an amount that would be tough to recover in a future sale.
