How to Make More Money Doing Nothing. Why Patience is the Key

Morning Folks!!


Morgan Linton did an interesting article yesterday on developing. He looks at domains the way I do and many others. As Real Estate because of all the parallels. Like I have always said, for everything in the virtual world, there is an EXACT real world parallel that holds many of the answers. For domains it is Real Estate but there are many others as well. Once you make the connection and study things you will find answers. If you don't have the time or pateince than you will work in the blind.


Let’s say you own a nice parcel of land outside of town. But right now that parcel, that property is surrounded by nothing. Just more land and a few farms and such. But then you get information that in 5 years they are building a huge mall directly across the street from where you have your parcel of land. Do you:


1. Sell it to the first guy that will double your money?


2. Build a competing Mall?


3. Open up a sporting goods store right now even tho it may be 5-10 years before that mall is fully done?


4. Do nothing?


5. Charge the workers to park their cars there.Sell them Hot dogs at Lunch?


6. Listen to offers of interested parties. Maybe even wait and do nothing until the mall is all built and you can see if there are any voids you can fill to find your own niche?


In Domaining, most folks do #1. That’s what domain flippers are doing when they let a great domain slip thru their hands. The first 3 answers are the wrong ones from my vantage point.


Developing for the sake of developing because of peer pressure is folly. I have done enough of it. Lost enough time and lost enough money. Have little to show for it.


First of all to really develop let’s start at the end of the story. A SALE IS MADE. Nobody is making anything until a sale happens. So you need a cash register for the money. No register, than you did not develop. You made a better parked page, but until the cash register comes, The “D” word is not apropos.


Have a GREAT Day!

Rick Schwartz

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44 thoughts on “How to Make More Money Doing Nothing. Why Patience is the Key

  1. Nancy

    I wish I had the luxury of being able to wait. I know I’ve made some BIG mistakes with domain names because I needed money. Still making them.

    Reply
  2. Rick Schwartz

    Nancy,
    That is why you have to build a”Revenue Engine” first. That supports the other domain names. Grow slow and healthy. Don’t buy more names than you can carry for a few years. Develop one domain that makes $500 a month and earmark those $$$ for new domain acquisitions.
    The first domains are your most important because they determine your path.

    Reply
  3. Leonard Britt

    Yes, development is a bit more complicated than parking. Websites don’t make money unless they rank on page one or perhaps high on page two of a major search engine (including Google/Bing images) for some search phrase. A domainer who has a nice name is like a property owner. Quite often that property has development potential but just like a property owner is not a real estate developer, the domainer is normally not an expert at development, design, SEO, marketing, etc. Thus, website development can become frustrating initially because one does not quickly see results. It takes time and work for search engines to recognize a new website, particularly in competitive niches. Even then, monetizing traffic is not automatic. Adsense CTRs on developed sites can be disappointingly low while affiliate programs can be even more so. My background is not sales and yet I am now trying to reach out to local businesses regarding advertising placement on a local geo – easier said than done.

    Reply
  4. Blogger

    Hi
    The 3 options I see are:
    1. Earmark a % of your salary/wages and save for a DN.
    2. As Rick says:”Rev. Engine”. Develop a DN into a real income generating site either via Parking, AdSense, or ecommerce.
    3. Sell off your weaker domains and reinvest your profits by upgrading.
    I’m doing a combo of the above.

    Reply
  5. Rich

    I agree. Developing on a domain is no different than developing any other business. You need: a unique idea; excellent execution; plenty of money (capitalization); flexibility to allow the business to grow as the market dictates. I personally like using WordPress for proof-of-concept. I am happy I do, since most of my ideas prove to be ideas without a market. More than ever before, growing a business requires lots of patience.

    Reply
  6. Jeff Schneider

    Hello Rick,
    Great Post!
    There is a fine line between absolutes in the Domaining game. There are so many factors at work that it is hard to decide what to do.
    Therefore PATIENCE is a Key Word that all domainers need to have. Sometimes the best thing can be to do nothing to a point.
    The great thing about the evolution of the domaining game is in the need for domainers to be able to cash in on the development phase of their Domain Business Address. In the very near future there will be a way to do that in my opinion. There is coming on the horizon a Mall being added to your properties locale you might say.
    Only this option that I speak of in a post on my Blog will allow you to easily be a part of the development equation and therefore get the pot of gold at the end of the full development of your business Address.
    Thanks for the post Rick !
    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

    Reply
  7. Joe

    Great post Rick, as always. I’d certainly choose the #6. No big investments until the surrounding place gains value and then I’d evaluate some proper actions.

    Reply
  8. Anunt

    Take your profit and REPEAT…
    You can never lose taking a profit…don’t get greedy!
    If you wait…you might make more money or lose it all…why take this chance when the profit is in your face!
    take the money and run i say…run forest…run!
    Take your profit and REPEAT…

    Reply
  9. Rob

    Hello Rick,
    There’s a concept called HBU in real estate, it’s a process similar to what you describe -I wrote about it in the comments for the Registrar.com sale on Flippa.
    Regards,
    Rob

    Reply
  10. John

    Rick i agree with you i also think .co domains now are in that same sort of situation if you own a .co category killer do you sell now for xx,xxx or wait 3 to 5 years ? example lets say if you owned Casino.co that is a example.

    Reply
  11. James

    @Leonard Britt -“Yes, development is a bit more complicated than parking. Websites don’t make money unless they rank on page one or perhaps high on page two of a major search engine (including Google/Bing images) for some search phrase.”
    They can if they get natural traffic. If they don’t, then they’re likely to be a block or two away from where that mall is being built anyway.

    Reply
  12. steve@softwaretofit.com

    Most real domainers don’t have the programming skills and creativity to develop their domains and use adsense to make ten times what they do in parking.
    I saw some hire people and they went bankrupt. Hiring people where creativity and programming is needed spells disaster.
    Do it yourself, it costs nothing. The skills I have are worth $300,000 so why would I waste my time developing small domains.
    When I worked for the government I was the only programmer. Soon the system I built employed 100 people and they still paid me $80,000 a year. I told them to f off and quit. They couldn’t see my value? So now I just walk to and fro and think and do some work when I need money. But I laugh at most of what I see.
    Everyone is leaving big money on the table because they are actually smart enough to know they have gone as far as they can go.
    They have hopped on all the rocks they can and the next rock is 30 ft. and they know they can’t make that jump. And they are right for not trusting others.
    Have you ever watched a company try to hire a programmer. They ask how good are you at java and of course he replies I’m a 10/10.
    I used to have fun with the other employees as they rated themselves 10/10 and rated me 2/10. I call them now to see how they are doing and get a laugh. I am the best all around. Sure I met programmers that could run circles around me, but that is just 1 skill. I tired 3 skills together and I am 20 times better than them now. My eyes are open and I laugh at everything I see.
    How did I get here. 18 years of hard work and a lot of tears. Some good days in there to. But I’m a war horse that made it through and didn’t get killed. Now when people call me and I tell them my rates they cough and gag and say we can’t afford that. I know and that is why you will fail.

    Reply
  13. Jacqueline Fontenot

    Rick, I’ve been reading your posts for several months and while I can appreciate your”expertise”,concerning domains, as a woman,I find your site to be offensive in the least. It is difficult to take you seriously with not one, but four links filled with a half-naked woman promoting your domain conference. I would hope your conference is indeed about networking with other domainers and not what your ads imply. Remember, nearly half the population is made up of females and it would make good business sense to not offend possibly one-half your audience. I realize”sex sells”, but integrity,honesty,and morality will win in the end and what gives us ultimate peace with ourselves.

    Reply
  14. Alexander

    Thank you for sharing your insight, Rick.
    Since everyone’s situation/goal is different, there’s nothing wrong with flipping to generate cash flow. However, please keep selected wonderful domains for your development or million-dollar resale later.
    Most likely patience will pay off for premium domains with high demand.
    For most domains, there maybe just 1 or a few buyers that’ll bring you a good offer. Unless you’re developing it, it’s worth considering the flipping option. Reinvest to buy high grade domains you can hold.

    Reply
  15. domain guy

    what most sophiscated land developers would do is put a contract on the piece of land”contingent to rezone” rezone the land to a higher use and then put up a sign for sale or lease.ie create value for the piece of land.
    so the domain holder could do the same thing put up a simple wordpress websight cost under $500 and be at the begining point of development.you simply google wordpress meetings for your area go to a meeeting talk to other people and move on up the ladder.you do not know where to start google your domain and see what similar domains are doing in the biz world.owning a domain without proper management diminishes your position and the domains intrinsic value.

    Reply
  16. Anunt

    Steve, stop with the cocky BullShit…i just looked at your website scrabblecheat.com … it looks like shit!
    Take a poll…who thinks the website scrabblecheat.com looks any good.
    I dont think you quit your job buddy…i think they fired your ass for developing bullshit sites like scrabblecheat!
    Your a war horse who worked for the government who has programming skills worth $300k…go find the nearest fucking bridge and jump off…you’re a waste of human life you piece of shit!

    Reply
  17. Anunt

    Jacqueline, i hope you dont believe that”integrity,honesty,and morality will win in the end and what gives us ultimate peace with ourselves.”
    Stop believing that bullshit…This is America…Sex Sells!
    Sex always wins…go ask your husband…
    or just take a day off work and go follow your husband around…then tell me how much integrity, honesty, and morality he has!
    you’ll be filing divorce papers very soon!
    Rick is a porn domain king…thats how he made his millions…his dirty money is as good as anybody elses.
    So Jacq, if you’re out there trying to save the world…good luck with that bullshit!
    This is USA…it’s all about SEX, Drugs, Gambling, and dont forget the alcohol baby!

    Reply
  18. Pattaya Girls

    I’ve been sitting on some domains since 99 how does one really know the right time to sell ? one is a one word dic .com but i can find very few recent examples of them being sold to gauge what mine might be worth.

    Reply
  19. Michael Hallisey

    Last year I bought http://www.ArcadeMonitor.com/ I started developing it last month and it got 1500 visits and 40 emails for monitors I sold a few already but I wasn’t ready and I am still trying to figure out how to ship the products.
    This is the best site I have ever created and I think what brought all the people so fast is that it is a key word domain. Its kind of a niche to because the average person would not know where to buy and arcade monitor and the first place there going to look is the internet and they will find my site. This site did not get any traffic until I started working on is last month. I found this domain on a dropped list too and only had to pay registration fee to for it.

    Reply
  20. Jeff Schneider

    Hello Rick,
    There are many ways to build a network of Business Addresses without developing them. By the way IMPORTANT POINT FOR DOMAINERS!
    if you are describing your Business Addresses as Domain Names my marketing advice is to start calling them BUSINESS ADDRESSES! in your branding strategy, because that is exactly what they are, BUSINESS ADDRESSES. Domain names is a very shallow shadow of what they really have become in reality.
    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

    Reply
  21. Jacqueline Fontenot

    Anunt, I firmly believe that integrity,honesty and morality wins in the end. These are the mores America was founded on and as we move further from these values,the more America becomes less relevant in this world. I believe you can choose valuable domain names without forsaking these values.
    I must have hit a nerve for you to so personally attack me. I know exactly where my husband is…a hospital bed. He has been battling a disease for 26 years with more courage,integrity,honesty,and morality than most possess.
    Back to my original point…most astute business people listen to the opinions of others without taking a personal affront to those opinions. And that’s what my comment was—an opinion—take it or leave it.

    Reply
  22. steve c2

    @ Jeff.. good idea.”Business Address” on the Internet. Saying”Domain Name” leaves people’s eyes glazed over.

    Reply
  23. George

    Jacqueline Fontenot,
    There’s no remote control at this site but, you can apply the same principal. Go to a website not offending you and stop your pain.

    Reply
  24. Fraser

    One thing to consider is putting up a website with content relating to your domain will allow your domain/website to age for the search engines. Aging is a key ingredient when SEO’ing a domain. Any existing SEO value will only add to the value of the domain.
    The flip side is that with a blank canvas (eg a parked page) a potential buyer of a domain can imagine what it could be and potentially pay more for the domain than he would if using a straight DCF model to value the domain.

    Reply
  25. Landon White

    @Jacqueline F****enot
    (quote)I firmly believe that integrity,honesty and morality wins in the end. These are the WHores America was founded on(unquote)
    Say Jackie Babe,
    Stick your control freak women’s glib,
    the only thing you control, is the remote control
    on lover boys hospital bed.

    Reply
  26. Altaf

    Jacqueline Fontenot said,…”I know exactly where my husband is…a hospital bed. He has been battling a disease for 26 years with more courage,integrity,honesty,and morality than most possess.”
    It touched our hearts.We are really sorry to hear it. We should not judge with our own situation. People may have gone through many ordeals.So let us talk with respect & modest w/o personal attack as we meet here virtually.

    Reply
  27. Landon White

    @ Altaf,
    Nice Touch,
    26 years, you must be a gullible simpleton …
    I think what she, you and monique
    really want is to see Anunt half naked on the beach ads instead!

    Reply
  28. I hate flowers

    Anunt, have a little respect. You are a waste of space.
    Keep building your little empire with flowers.mobi (that is bulls#&*)
    Go comment on some porno site where you and some psycho/sicko can enjoy each others misery.
    If you believe in semantics, then stop following Rick’s blog.
    We won’t miss your immature and elementary comments.

    Reply
  29. Lesbo Miss

    @ Hater
    Your diatribe touched my heart,
    Anunt has more courage,integrity,honesty,and morality than you possess, so stop hating don’t you want ultimate peace for your selves.
    Show some respect, the man hating posts that are up and down this blog show your true perverted brain,you need to find a sicko blog that you and your girlfriends can
    find some women to boss around in the virtual abound.

    Reply
  30. Anunt

    I apologize Jacqueline…very sorry for my comments!
    I also very much believe in integrity, honesty, and morality…but there is just so much bull crap that is going on in the U.S…sex, drugs, gambling, alcohol, crime, etc…
    i get to travel alot and have been to alot of U.S. states…all i see is young people using drugs…young people getting drunk…alot of crime…people having sex with different people on a daily basis…teens having kids that they can not support…gambling at the casinos, playing lottery…losing all their money then committing crimes, kids have no respect for elders, and of course theres the T.V. and the internet with all kinds of xxx adult crap, etc, etc…
    I have told alot of friends of mine not to raise their kids in the U.S….there are other countries much better than this to raise your kids…but the problem is you will not make as much money in these other countries like the U.S…thats one thing great about U.S….lots of opportunity to make lots of money…everything else pretty much sucks here!
    Anyways, once again, i sincerely apologize Jacqueline…Sorry!

    Reply
  31. Domainfest Dyke Stomper

    Here they come!
    A snitch has it that there is a plan by the domainfest dykes,
    who don’t like the men being in control, so
    word has it that they will try and bully on the
    blogs and get the weak men to side with them and accommodate
    there DEMANDS and do there best to eliminate the most vocal so that THEY can dominate …… BE AWARE OF THERE UPCOMING POSTS!
    BUTCH, we are on to your power trip struggle and it is OVER!

    Reply
  32. UFO

    This aligns very closely to a businessman I worked for as a student during one of my summer holidays a long time ago in my home town.
    He was a very streetwise character. We talked a lot as he had lots of good advice, and I remember him saying that there were some proposals to redevelop the area where he had this shop, and he would hang out to the last as he knew he could get the most then.
    Only a year ago I went back to my home town to visit my sister and her husband (quite a well known businessman) remarked to me as we drove past this now new development that”There was this guy that simply wouldn’t sell, they had to just about break his arm to do the development, he must have got a fortune”
    And Gheeze did I laugh. He really did get a home run.
    Moral of the story: Think ahead, position yourself and something is worth as much as it is to a buyer.

    Reply
  33. Jeff Schneider

    Hello Rick,
    I think we can all agree that if you have a superb Business Address and it has a .COM after it, you can safely say you need do little or nothing. The reasoning behind doing nothing will be enhanced by doing some extra steps, like we have done to our Business Name, that will only enhance your efforts. Actually its very simple and costs like 12$ to 15$ a month. I would be happy to discuss this with those that are interested.
    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

    Reply
  34. David

    Ok hold the phones, is this the same Anunt Patel(?) who sold several myspace.com typos to forum members ( on other forums ) for thousands of dollars only to find out he had received C&D’s on them, meaning the new owners lost them near immediately. I am not defending tm buyers but a seller like that need not use words such as honesty, intergrity and morality.
    From what I recall thereafter Anunt purchased a big 6 figure name and thus the self righteous horse was saddled and ridin to this day.
    PS, he is still banned at the forum over this.

    Reply
  35. Wolftalker

    Rick, thanks for the info.
    As to the other people who have suggested positive things here also, thank you to you too.
    Next: this blog is about domain business, but as no man is an island, no biz is either.
    So to Anunt and Domainfest Dyke Stomper and Lesbo Miss and Landon White and all you who agree with them, or think like them, you are a disgrace to humanity and should be banned from not only this blog, but this planet.
    You exhibit such rage and venom at the slightest opportunity to do so. Do you really hate women that much? Do you really blame your life’s woes and troubles on the ‘bitches’, ‘feminists’?(- or choose on of your other derogatory terms, of which I’m sure you have many.)
    Are you really so insecure as a person, as a man, and so unaware of yourself and your life and your way of thinking, as to explode because a woman dares to suggest a less demeaning approach to women be taken as a business tactic to improve sales/positioning in a global market place? (-where women make up 52% of the population)
    Wake up fools.
    As Mark Twain said,”If I could kick the arse (ass?)of the man responsible for all my troubles, I wouldn’t be able to sit down for a week.”
    Stop hating women, and be the change you want to see in the world.
    And if you want help in this area, I’ll be happy to assist.
    Domain business is connected to life business – be a better person and you will be a better domainer.

    Reply
  36. Altaf

    Anunt said in reply to Monique…
    I apologized to Jacqueline…dont know what i was thinking…should not have posted all that crap!
    @Anunt: My advice to you, pls take care always before posting any negative thoughts on the forum where hundreds see your personality.You are no doubt an intelegnet & creative person,who could add value, but give something to the world with + way.After all what we get from attacking others who we never met or know at all.

    Reply
  37. car cardiff

    I wish I had the patient to wait. I always choose to sell the domain for fast cash. Thanks for the great info. I’ll try to make my own revenue engine in the future.

    Reply

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