I have always been an advocate of making mistakes that lead to learning and growth. In the domaining arena, I have made my fair share. I have always found that my biggest learning moments have come from those trial-by-fire moments where I was thrown into a situation and had to figure it out. The lessons stuck because the path was so painful. But it doesn’t have to be that way. We can stand on the shoulders of those who tripped previously on the path and have paved a better way for us. That said, I have collected what I believe to be the top 10 mistakes new domainers tend to make and how you can avoid them. I have personal lessons I learned in each of these areas.
So, let’s dive into the top 10 mistakes new domain investors often make and how you can avoid them.
Top 10 Mistakes New Domain Investors Make and How to Avoid Them
Not Understanding the Market
Domain investing is not a get-rich-quick scheme. It requires a deep understanding of the market, including trends, pricing, and buyer behavior. Don’t invest blindly; do your homework first.
- Not Understanding the Market
Domain investing is not a get-rich-quick scheme. It can often appear to be with flashy posts about quick wins and high-dollar sales. The reality is that it requires a deep understanding of the market, including trends, pricing, and buyer behavior. Don’t invest blindly; do your homework first.
- Buying Domains without Commercial Value
Not all domains have the potential for profit. Look for names that businesses might want to use. Keywords, short names, and .com domains often have higher commercial value. Look for industry generics and potential niches in other popular TLDs such as io and ia. Just make sure your name fits the TLD if you stray from .com.
- Neglecting Domain Appraisal
Just as you wouldn’t buy a house without an appraisal, don’t purchase a domain without understanding its worth. Use reliable domain appraisal tools to estimate the value of a domain. Seek professional input if needed, especially if you are investing a significant amount of money.
- Overpricing Domains
While it’s important to make a profit, overpricing your domains can deter potential buyers. Be realistic about your pricing strategy. Yeah, I know you’re excited and you love your domain name, but that’s not enough to make it valuable. It must be properly priced to even spark a negotiation. I have heard brokers say that they find other domains for their customers if the initial domain is overpriced.
- Ignoring Legal Issues
I’m not a lawyer, but I play one on TV. No, I don’t even do that. Just know that trademark infringements can lead to legal issues and potential losses. Always check if the domain name you’re interested in infringes on any trademarks. When in doubt, move on to a less risky name.
- Failing to Negotiate
Negotiation is a key skill in domain investing. Don’t accept the first offer you receive. Learn the art of negotiation to maximize your profits. I know I have left money on the table. Be smart about negotiating. You can also blow the deal if you don’t know what you are doing.
- Not Diversifying Your Portfolio
Don’t put all your eggs in one basket. A diverse domain portfolio can increase your chances of making a sale and reduce the risk of loss.
- Forgetting to Renew Domains
One of the most costly mistakes is forgetting to renew your domains. Set reminders or opt for auto-renewals to avoid losing your valuable domains. Today, it is so easy there is almost no excuse. Make sure to update your accounts if your payment method changes.
- Underestimating the Power of a Good Broker
A good domain broker can help you navigate the market, negotiate deals, and sell your domains at top prices. Don’t underestimate the value they bring to the table. This could be a completely separate post. Find a trusted one in the industry, they know what they are doing.
- Not Learning from Mistakes
Everyone makes mistakes, but the key to success is learning from them. Use each mistake as a stepping stone towards becoming a better domain investor. Don’t get pissed off and give up. Learn from it and see it as getting that much closer to becoming the kick-ass domainer you envision.
Remember, domain investing requires patience, research, and a willingness to learn. By avoiding these common mistakes, you can make informed decisions and increase your chances of success in this lucrative field.