7 Myths About Domain Name Investment

I started investing in domain names a few months after the launch of new generic top-level domains (gTLDs). I was interested in the phrases that could appear in many of the new domain extensions, especially in the fields of education, science, promotion, and travel. So I registered some domain names related to these fields. Although I thought these domains were perfect at the time, I later realized that not every "perfect" domain has a potential buyer. Even within a specific industry or field, not everyone is willing to spend a lot of money to buy a brand new domain. I did successfully sell some domains at a lower price, but I also learned a lesson from it.

Only those who have really invested can speak about the misunderstandings of investment. The following are 7 misunderstandings of domain name investment shared with us by an investor who has been working in the domain name industry for many years. They are all heartfelt words. For the sake of convenience, I will use the first person "I" to describe them.

I started investing in domain names a few months after the launch of new generic top-level domains (gTLDs). I was interested in the phrases that could appear in many of the new domain extensions, especially in the fields of education, science, promotion, and travel. So I registered some domain names related to these fields. Although these domains seemed perfect at the time, I later realized that not every "perfect" domain has a potential buyer. Even within a specific industry or field, not everyone is willing to spend a lot of money to buy a brand new domain. I did successfully sell some domains at a lower price, but I also learned a lesson from it.

Only those who have really invested can speak about the misunderstandings of investment. The following are 7 misunderstandings of domain name investment shared with us by an investor who has been working in the domain name industry for many years. They are all heartfelt words. For the sake of convenience, I will use the first person "I" to describe them. Although I thought these domains were perfect at the time, I later realized that not every "perfect" domain has a potential buyer. Even within a specific industry or field, there may not be someone willing to spend a lot of money to buy a brand new domain. I did successfully sell some domains at a lower price, but I also learned a lesson from it.

1. Cheap is not necessarily good

I personally like to save money, so in domain name investment, I have tried to find domain names that are cheap but of the same quality as domain names that cost thousands of dollars. However, I gradually realized that in most cases only the best domain names can really sell. Because the cost of building and running a business is far more than the cost of the domain name, why would you be willing to pay an expensive price for a domain name that is below market standards? Therefore, I learned to focus on quality and the best domain names in the niche market.

2. Don't settle for the status quo

Familiarity with a certain method or process often creates a sense of comfort, but I firmly believe that exploration and trying new things are the key to growth as a domain name investor. In the early years, I used to register domain names manually and mainly sold them on a single market. However, I realized the limitations of this approach, so I began to try to list domain names on more markets, although the results were not always ideal. Today, I register and sell domains on multiple markets, and this diversification brings greater opportunities and returns.

3. Invest in what you understand

Domain investment is already complicated, and if you don't understand a certain industry or niche market, don't invest in it easily. A few years ago, I bought some cryptocurrency-related domains because of the trend. Although they were popular at the time, I knew nothing about cryptocurrency. This blind investment did not bring me any benefits, but taught me an important lesson.

4. Don't be swayed by automatic evaluations

I am not opposed to the use of automatic domain evaluation tools, but I have learned not to rely on them too much. In the early days, I paid too much attention to those overvalued domains, such as the overvalued GoDaddy or Estibot values. Now, I rely more on my own research and market experience instead of simply relying on automatic evaluations to make decisions.

5. Words and age are not everything

In the past few years, I used to chase dictionary words and old domains, thinking that they automatically have high value. However, I gradually realized that not all words have commercial value, and age is not the only criterion for measuring the value of a domain name. Today, I pay more attention to the overall quality and potential market demand of domain names, rather than simply relying on a single feature.

6. Don't register too many domain names

Domain name investment is addictive, and many people fall into the trap of registering a large number of domain names. I used to have this experience, but with the accumulation of experience, I learned to control the number of registrations and pay more attention to quality rather than quantity.

7. Sell domain names in a timely manner

Holding unlisted domain names is a waste, so I learned to list them in a timely manner and manage my investments effectively. It is very important to keep good records and check them regularly to ensure that each domain name is properly cared for and managed.