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:
It can be either intentional or by mistake. Can’t say for sure. Also I suggest not to buy domains with only one potential buyer in sight.
— AbdulBasit Makrani (@abmakrani) December 13, 2023
This is wise for at least two reasons. The first and most obvious reason is that if the one prospective buyer doesn’t want to buy the domain name, nobody else will. There’s also a pretty good chance that prospect had the opportunity to register or acquire the domain name but passed. The second reason is the potential for trademark risk. If the brand is unique – and there is only one brand – buying the matching domain name could be a trademark violation. This could turn the domain name into a liability.
The second piece of advice is from Robin Hablani:
A piece of advice for new Domainers.
End users don't by CRAP! That's the reason why domains don't sell.
MenInBlack makes sense✅ whereas MensInBlack doesn't❌
It's harsh, but true.
— Robin (@RobinHablani) December 12, 2023
This should be the most obvious, basic advice for someone who wants to buy domain names. Unfortunately, there are many people who don’t understand. I have often chalked it up to language / translation issues. It’s a reason why I tend to stay away from domain names in non-English languages.
One way someone can ensure their domain name makes sense is to search the term in Google with quotes. A search of “men in black” would yield many results, while a search of “mens in black” would not. Unfortunately, Google stopped showing the number of results, which makes this a bit less useful.
Domain investing is not a get rich quick business. There can be a steep, costly learning curve to achieve success as a hobby or a business.