More domain buying

Written by Mike

Topics: General

Even though I eased up a little buying new domains recently, I had a few new ideas over the weekend, which resulted in a small domain buying spree.

I sometimes wonder if I am doing the right thing or not. I heard a good story of a guy who thought domains were a good investment and started buying a lot of domains. His wife complained to him what was he doing spending all of this money on buying internet domains.

He got his first return when someone bought a domain for $5000. His wife then said to him, “what are you doing going to bed – go and find some more domains to buy!”

I believe I have fairly good instincts when it comes to making investments. Not everything I have done has turned to gold, but my gains are currently outweighing past losses I have made.

5 Comments Comments For This Post I'd Love to Hear Yours!

  1. My biggest problem is trying to decide their value because I wouldn’t purchase them if I didn’t think there was potential value in the name, but have no idea what others would be willing to pay for it. All the domain calculators I’ve seen are so off mark that they are next to worthless.

  2. Mike says:

    Something is only worth what another is prepared to pay. Have a look at some of the big sales this year:

    http://www.dnjournal.com/ytd-sales-charts.htm

    I listen to the domain show every week on webmasteradio. One point that comes through is that big companies are yet to realize the value of domains. Considering the amount of money they spend on marketing (millions of dollars), buying a quality domain, or website to promote their business is fairly cheap.

    For example a mortgage lender/credit card company could be very interested in savingadvice.com.

  3. Steve says:

    Why would someone buy a domain for $44,187 and then put up one of those weird link pages (don’t know what they’re called). PasadenaRealEstate.com, for example.

  4. Mike says:

    Whenever people click a link on the ‘weird link page’ the owner gets money. I am fairly sure that people who buy these sites know exactly what they are doing.

    Prices of premium domains seem to be rising well, so compared to say buying a rental property, it could be a good hassle free investment.

  5. Amy Stephen says:

    I bought a few modi domain names recently – and lost a few to someone else that I thought ROCKED! If you have a minute and you are cruising the Internet, check out the names I have remaining. If you have a gut feel, I am interested in your perspective on whether I threw money away, or will be able to “Retire Young and Wealthy!”

    http://community.nebraska.edu/amyblog/index.php/2006/10/02/mobi-wins-and-losses/

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