Five key to succeeding in the domain name business

“Many of life’s failures are people who did not realize how close they were to success when they gave up.”

– Thomas Edison

Having a hard time with this domain name business? Or for that matter, with any other challenge you’re facing in life? Have you been working at it for a long time and starting to feel like you’re not going to get there?

Don’t give up, evolve. Learn from your mistakes.

Here are five pieces of advice that will almost guarantee success. It took me two years to learn how crucial these points are, so pay attention:

  1. Sell. As a domainer, focus more on the sell side and develop selling strategies that work.
  2. Buy Revenue-Earning Domains. Only buy domains with the proceeds of your sales, not on credit or with your savings. Use the money from your sales to buy revenue-earning domain names. Ask the seller for proof of earnings and analyze the stats and the domain carefully. Is the traffic steady or declining? What is the source of the traffic? Is it easy to monetize? Is the domain easy to remember, pronounceable, and descriptive? Consider all these points and make sure the domain name will be profitable for you within a reasonable period of time before you agree to buy.
  3. Buy Underpriced Domains. Look for deals where the seller is either desperate or is undervaluing the domain name out of ignorance. If the industry standard is to pay one year to ten years revenue depending on the quality of the domain, try to find someone who’s selling for 10 months to 2 years revenue. Make lowball offers and bargain hard; you’ve got nothing to lose.
  4. Monetize Your Traffic. If a domain name is getting traffic but no clicks, look for alternative ways to monetize it, such as changing parking services, altering the keywords, developing a website, or redirecting the traffic to an existing website or affiliate link.
  5. Dump or Sell the Losers. If a domain name is getting no traffic, dump it. Sell it for whatever you can get, unless you are convinced it has re-sale potential, in which case, return to point # 1.

Remember the coyote in the old road runner cartoons? In every cartoon he’d try some new ACME device or trap to catch the road runner, and each time he’d fail abysmally. Like maybe he’d try a rocket-powered harpoon, but he’d point it the wrong way and shoot himself instead of the road runner. Whereupon he would ditch that idea and try something else.

Even as a kid I remember being frustrated and thinking, “Why not just try the harpoon again, but this time point it the right way?” By the time I was ten I could not watch the road runner cartoon anymore because I was so annoyed at the coyote’s inability to learn from his mistakes.

Maybe I was a weirdo kid and missed the point of the cartoon, I don’t know.

Look, I know this is a cliche, but the night is darkest just before th dawn. The moment when something is the most difficult is often the moment before a breakthrough. Don’t abandon your dream, just refine your strategies, learn, adapt.



6 Comments to “Five Keys to Domaining Success”

  1. Domain Parking Money | November 19th, 2007 at 4:34 pm

    Great post! Funny, when I started with expired domains I quickly found a formula that made me money about 75% of the time. I could put a few bucks down and many times the expired name that I had purchased would pay for itself within one or two months. After that it was pure profit.

    Once I got good at this process I thought I would try to find another “domaining formula” instead of focusing my energy on what I knew already worked.

    Doh …!

    Today I am back at what works … formula number one. I think the best part of your post in the quote. I believe that to be very true, many people seam to give up on all sorts of worthy things far too soon.

    Brian

  2. Dale Buckey | November 19th, 2007 at 10:03 pm

    Your post came at a good time. I own over 800 type-in domains and just now finding time to “monitize” them. Gosh- we live in a great time with all that is happening with technology and the web. I feel that in some small way I am going to help change the the domain industry, yet I don’t have the exact path just yet?

    My, TheDailyDomainList.com was just created last week so it has a long way to go, but I think I have some good ideas how to help get my message out along with other info for those new to the industry.

    Your site is ideal! Simple yet informative, no BS and the adsense ads are unobtrusive. Keep up the good work.

    Dale M. Buckey
    401 225-8840

  3. W.H.A. | November 20th, 2007 at 12:12 am

    DomainerPro Here: I shared these 5 points with Sahar Sarid of TheConceptualist.com and asked him to comment. Here are his comments, with no changes:

    —-Answer—-

    On point 1, when we first started we were completely focused on not selling, still are. Not to say good or bad but it is one strategy of many.

    On point 2, completely disagree. I started in the business with 20K credit limit.

    On point 3, make some good points. I will write more about it later.

    Point 4 fully agreed. Key is not to try so much as to understand. If you can understand the source and need of your traffic better off than most who never ask, just assume.

    Point 5, not sure. There are other solid strategies like “keep all” and one sale will pay for all. It worked well for us.

    Cheers

    Sahar

  4. Domain Name News | November 20th, 2007 at 5:27 am

    Not everyone is going to discover success in the same ways.
    If you have a success. study why and then
    Rinse – Wash – Repeat. . . . come up with a way to do it 1000s of more times

  5. ASN5 | November 23rd, 2007 at 2:42 pm

    This is great.

  6. Five Keys to Domaining Success | DomainBusiness.cc | December 23rd, 2007 at 2:01 pm

    […] Share This […]

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