Let’s say you are new to the world of Domain Investing. You are interested in making money domaining and you meet the following qualifications:
1. You don’t have a lot of money, you are comfortable with risking $100 tops and you don’t want to put all your eggs in the same basket.
2. You have a job or are in school and you see domaining as an enjoyable hobby with potential.
3. You feel ready to dip your toe in the water.
4. Assume you will lose the $100.
But what’s the best chance not to lose that $100?
In my opinion, with your first $100, hand registering .com domains is easily the best move.
1. Stick with .com.
2. Start getting a list of domains you think might be worth registering. This will take time and there will be a huge learning curve. Stuff that looks good now, will in most cases look like garbage a year from now. Keep building and curating your list. Run it regularly. Don’t be mad if you see domains from your list taken by others. It means you are on the right track and does not mean you would have sold that domain.
The following is a good test for newbies. Build a list of 1000 domains that you think are worth registering. This will take time but its easily doable. You will find better ones as you go. If after 30 days of getting your list to 1000 domains, none of the domains have been taken by others, you aren’t ready to pull the trigger and start buying domains. Currently I have 3146 domains on my watch list. 104 total domains from my list have been registered by others since 2-1.
Learning what others are not just selling but also taking from your list is an important way to know if you are on the right track.
3. Find a .com sale. These days if you pay attention and keep your eyes open across many domain related outlets, you can find sales from $1.99 to $6.99 per domain. Any advantage you can get in this game is huge. If you can’t find these sales, do the work needed to figure it out. It may be a pain to register domains at certain registrars but suck it up and do them one at a time if they are only a few dollars each. These sales pop up seemingly every 4-8 weeks. Just be ready to pounce.
But what are the best opportunities?
In this post, I will focus on 5 Letter brandable .coms, as one of several areas in the .com space I currently see opportunity hand registering domains.
To me a good 5 Letter .com is a valuable asset. End-users understand intuitively that there is an intrinsic value to a good 5 Letter .com domain. People see the advantage of a short brand and the added credibility it can bring. It’s a popular category on the brandable markets. Based on the math alone you can easily quantify the value in a way people understand. For example, there are 231,525 possible CVCVC (consonant/vowel) combos.
I believe based on the research I am currently doing, that there are still tens of thousands of good 5 Letter brandable .coms currently unregistered. I think this list narrows significantly over the next year. Finding these domains takes time. I built my own software to mass search for domains based on various criteria I give the system. I believe there are some good tools out there that domainers can use to run various patterns. Look at the trends of what 5 Letter .coms have been selling on brandable sites and aftermarkets.
Some recent 5 Letter .com flips of mine.
Registration Date: 7-20-16
Sale Price: $495.00
Via Godaddy Premium
Registration Date: 7-20-16
Sale Price: $999.00
Via Godaddy Premium
Registration Date: 10-11-16
Sale Price $150.00
Via Private Sale
At NamesCon, I learned that some domainers see a sweet spot flipping in good volume at the $299 price point via the Afternic network of sites. I’m testing price points now and will report back based on the results.
Here are other examples of recent 5 Letter .coms I have registered.
I look forward to hearing about other domainer’s experiences with brandable 5 Letter .coms.
Once you start to realize how to search for domains you realize that there is a certain threshold a hand reg needs to pass to pull the trigger. You need to be disciplined about it or you will lose money fast. You quickly see after domaining over several years, how quick that first year of renewal comes up. Suddenly a domain you have been trying to get $2K for is not even worth renewing. Maybe that same domain sells much earlier for $299. I am currently experimenting with certain price points. I’m looking for singles not home runs when I invest. Singles bring in steady cash flow. There are no shortage of opportunities. How and what to look for will be an ongoing theme of my future posts.