The men all want to be them and the women all want to be with them. The successful domain investor. Making money investing in domains isn’t a fluke. While there is some luck involved, the majority of investors that achieve success share many similar traits and skills that lead them to consistent profit. Here are a few that I think most share.
1. A solid asset with which to work. We all have some names that are less than quality but for the most part, a domain investor that has regular sales has a good quality portfolio from which to sell. Like any other business, you generally have to spend good money to make great money.
2. Good negotiation skills. Anyone can pay too much for a name or sell a name cheap, but doing the opposite takes practice. There are many ways to get your price but those that are successful have figured out a way that gets them where they need to go.
3. Knowing which names will sell. Most domain investors have their niche. A type of name that they know they will be able to sell for a profit. I can talk to 5 different guys and each one of them will specialize in a different segment of the domain market. Some are high end and others are in the $500 to $2000 range. Some are DUI and legal names, others in short letters. Overall, they have a good sense of what price range a name will sell for.
4. A decent bankroll. Successful domainers have all ranges of capital but most have capital available when a good investment pops up. The old saying is you never have any money when the best deals come around but a good investor always has some capital available or the ability to get it.
5. A sales outlet. It could be their blog, a broker, an auction house, or a newsletter but sitting and waiting for offers to come in is only a successful business model for those with giant portfolios. A good business doesn’t continuously take in new money. At some point it needs to generate enough profit to reinvest in inventory. Constantly taking money out of your other business accounts or paycheck to buy more domains is a ponzi scheme within your own investments.
6. Friends in the industry. Look at the guys that are making good money. They know almost everyone in this industry. They are a phone call away from getting any answer to any question they have. They give out and ask for favors from other in the industry. They know who and when to call. It may come across as one person doing well but almost all of the top guys are helping each other out when necessary.
7. Hustle. I don’t mean they hustle in the three card monty sense but the working hard sense. The top people work their ass off. Their are no set hours. You are always at work when all your job needs is an internet connection. This industry is tough and it requires a lot of time and effort to move domains. I am always surprised at the time stamps on the emails I receive. Its all day and night. Effort breeds success, especially in domains.
8. Know how to make money. It sounds like a simple concept but most people I know are followers and don’t know how to make money. They work hard and take a paycheck with the best of them but they don’t know how to make it. Its no coincidence that 99% of the top domain investors where highly successful in the business they were in prior to domains. Business is business. The concept behind buying and selling transcends all industries. A person that knows how to make money will eventually figure out how to do it again regardless of what they are buying and selling.
9. Marketers: Your name is all you have and most successful people in this industry are known by their first name. Because it is such a small group, it is very personal. Most brokers work hard at getting their name out there. The go getters in this industry are just as concerned about being associated with the big sale as they are about actually making money in the sale. Image is very important as it leads to more opportunity down the road. Opportunity equals profit.