When I started investing in domains that is exactly what I was doing. Investing! Taking extra funds and instead of buying stocks or saving it I decided to risk it on an investment. But that is not the path that most folks follow today and had I followed that path, I would have failed. Nobody would have given me a dime for what I had. So when you are forced to make a living and you have the steam roller at your heals, you don't have the luxury of time to think and plan and execute.
Now the majority of folks will buy that gTLD investment today and trying to flip it tomorrow. Some will have some success. But many more need to figure out how to bridge those 20 years Frank talks about before they sink with renewal fees. That is why I often talk about building an engine to support those names.
Let's do some math. Let's say you buy 1000 gtld's at $25.00/year. So that is $25,000/year x 20 years = $500k. And you may or may not have something with value.
You could buy a $500k domain name right now and finance it for 20 years and never look back. Probably could pay it off in 10 years because a $500k domain comes with traffic and earnings and that reduces the note considerably. And if you are smart about what you are doing, it won't cost you a DIME out of your pocket because your new business will generate those payments.
So I just described 2 roads. One is unknown and the other could be a no-brainer. You could do it at different levels. Finance a $100k domain. But first and foremost you must know which one to get as there are $500k domains with limited commercial value too.
And so.....I Could Have Just as easily Failed in 1996 by Doing what Some will do in 2013. There are many paths to climb this mountain. Just think before you climb because there are paths with not only less headwinds, but actual tailwinds.