If you can't handle the truth then stop reading and go buy a comic book. I have stated for years that the bar to entering domaining is very low and when you look at how some look at their business it becomes obvious.
Even domain flippers are selling collectible and unique assets with an income producing potential with a global presence. Except many of them don't know it. They think they are selling a PRODUCT they buy for $100 and sell for $200 or $300. They mark it up like inventory. Inventory??
So this caught my eye. 'You devalued your domains by offering them everywhere for sale: forums, brokers, flippers, your mom. Hold them locked up like a virgin in a harem, next time.'
Well those words are PRICELESS. The #1 challenge the Domain Industry has always faced is being a whore to make a sale and never understanding the TRUE value of a domain name. I have talked about it before. For many years. But Lucius put it in a very succinct sentence.
This week I used the Beep.me domain as an example. A $2000 sale of a domain could EASILY be worth INTO the 6 figures. First of all wtf is anyone or any company selling a domain like that for $2k?? A PREMIUM domain name worthy of much better then a $2000 sale. So sales are going down not because business sucks but because of things like this. All these companies should have QUALIFIED folks on staff to comb thru domains like this and not let them slip thru. Problem is the 50 people on the planet that may be qualified to do that have their own gigs and the last thing they need is a job.
This was just easy pickins for me because I think it was a good illustration. And if Beep.me has no value then the 1900 .whatevers don't either. But a 'Natural' is a 'Natural' and THAT is the key to any .whatever. If it is just a word with a .crap extension it will always be limited in value and business if any at all. But the top .whatevers will have some 'Natural' sounding things that have a chance. But that is the extent of it.
Half of you will jump on .crap and put a crappier name in front of it. Shitty.Crap. Which at least has MEANING! If you put Shitty.Crap out there I guarantee it is self explanatory. May not work as well with unrelatedwordsstucktogether.crap
Don't even get me started. I just see some companies undervaluing their assets in a way that is unfathomable to me. But that is their business and not for me to say this or that. So I don't want these companies to take offense. I can list many. Maybe all. Not that bad for a domain investor. But I have the ability to look at it from their side of the table and the least these companies need to do is isolate 6 and 7 figure domain names.
MOST domainers would flip that domain for $5k in 24 hours. BAD MOVE!!! At LEAST know the difference between a $5 domain and a $250,000 one. $100,000 on a rainy day. Fine, don't agree. But then you are no domain investor either. Maybe it is $25,000 or $50,000. Doesn't matter.
The point is even if you are a domain flipper this business is MUCH MORE than doubling or tripling the price against your cost. It is understanding you are in the diamond business whether you want to be or not and all diamonds are not the same. Beep.me is a diamond to somebody.
If I had the time I would open my own appraisal service and charge folks $250 each for a no bullshit Rick Schwartz valuation. Of course the ones I certify as 'Pigeon Shit' would make the owners very unhappy. lol But I would have to focus on domains with a minimum value of $25,000. But who has the time?
I have said for years that the only difference between a $3000 call girl and a $50 corner whore is the asking price and the value they put on themselves. I have seen beautiful $50 street whores and some homely $3000 call girls. (Seen, not used lol)
But domains can be truly measured for value in a number of ways. The automated ones are silly. They don't work. They factor in many pieces of the equation but fail to factor in the key pieces. TheDomains.com did a piece where they valued the domains at the TRAFFIC Auction at $1.85MM.
Well I like to mental masturbate as much as the next guy but the TRAFFIC Auction list is not worth $1.85MM and if it is, some folks are going to get some incredible bargains.
Just to be clear…
Flipping is just short term investing. Nothing wrong with that at all. It’s a great way to make a lot of money. I just prefer the long term outlook because it is less work and I have the luxury of waiting and that was my approach from the get go so that’s how I roll.
But even that does not always work out as I lose money on domains sometimes too. lol
99% of the domains I see have very limited value. 1% have value. 1% of those have great value. So when you are in a diamond mine only morons talk about the glass. The pros are busy looking for the diamonds in all that crap pile of glass. They only talk diamonds. And hopefully the biggest and best diamonds they can find.
Point is to STUDY first and then decide to sell or hold. Do you know how many emails I get from people that got a domain 5 SECONDS ago?? Flip less and make more!! Work smarter, not harder. Good luck!
Have a GREAT Day!