5 Domaining Mistakes and How to Avoid Them
If your domain portfolio is an out of control revenue eating monster or web development feels too much like a giant cash eating venture then you may be making one of these five domainer mistakes.
Mistake #1 – Development as an alternative to pay per click
Web development is an investment and not a monetization method comparable to domain parking. Domain parking is free (minus commissions) but web development carries upfront costs. Only develop your website if you have a solid business plan and are willing to do the work or hire someone to update the content. You cannot set it and forget it like you can with domain parking.
If you do develop, stick to a handful of your top domains and focus on those only before moving on to other development projects. It’s better to have one website producing revenue versus a hundred websites just sitting there collecting virtual dust.
Mistake #2 – Thinking all the good domains are gone
It’s true the most valuable one word .com domains are taken but you also have trend domains, brandable domains, geographical domains, long tail domains and the list goes on. This goes hand in hand learning what makes a domain valuable. Sometimes what makes a .com valuable can also apply to other extensions but this isn’t always the case.
It’s debatable whether .com is still king but other TLDs do sell. On DNJournal’s Year to Date sales chart there .club domains, .loans domains and others. Just be smart about it and make sure the keyword makes sense with the extension.
Mistake #3 – Purchasing whatever sounds good
The more domains you have the more renewal fees you have to pay out every year. Your revenue should at least cover your costs. Think quality not quantity. It’s better to have a small handful of domains people are willing to buy versus owning hundreds of domains nobody would even touch with their ugly sister. Do you due diligence before purchasing anything.
Mistake #4 – Diving into domaining way too fast
Hold on, buddy! There is a lot more to domaining than meets the eye and most newcomers spend many weeks and a lot of money making mistakes that could easily be avoided by learning what works and what doesn’t. With domaining you want to dip your toes in the water, not dive in.
Start by reading as many domaining blogs as possible, ask questions on forums such as NamePros.com and DNForum.com, mingle with domainers on Facebook and read help sites such as iGoldRush.com. Learn what makes a domain valuable and why. See what domains sold for in the past. NameBio.com is good for finding past and comparable name sales.
Decide what type of domains you want to invest in. It’s easier to stick to what you know so for now decide on about 5-20 domains that relate to a topic you know a lot about. You can do a mix of hand registration plus marketplaces such as SEDO, NameJet and Flippa to practice purchasing domains from other domainers.
You’ll also need to decide how you want to monetize by flipping, holding on to them long term, domain parking or development.
Mistake #5 – Getting a domain broker too early in the game
Domain brokers usually only take on highly valuable domain names. It takes work to sell a name: calling, emailing, negotiating. The domain sales has to be worth their time. Usually lower end domains just aren’t worth it for them. Lower end domains can be sold at forums or domain marketplaces.
What about you? What mistakes do you notice domainers making? Write your thoughts in the comment box below.