Is Domain Investing a Good Idea?

In the past decade, you might have seen news of multimillion-dollar domain sales and wondered if domain investing is a good idea. After all, it sounds pretty easy, right? Simply buy domains on the cheap and wait for customers to come to you and offer thousands or even millions of dollars. You could be a millionaire overnight.

But not so fast. Before you dip your toes into those risky waters, hear Jeff’s take on what you should know before becoming a domain investor.

Transcript

Hi, my name is Jeff Gabriel. I am the Co-Founder and CEO of Saw.com. We are the leading domain brokerage on the net. We’re always writing fresh content to help viewers like yourself understand and love the same industry that all of those that work with me at Saw.com have grown to love.

I’ve made a list of common questions and I want to answer each of these questions in 30 seconds or less.

Is it good to get into the domain investing business?

I do think that there are other opportunities for investments that are more profitable. But I don’t know the answer to that because I’m not sure of the returns of other industries. I mean, I’m sure if you get into the areas of doing things that are illegal, I’m sure the returns are much better. But the best thing that I can tell you, like any other thing, is that if you’re going to get into the domain business, there is a massive opportunity to make a lot of profit and be very successful.

But be careful… Domain investing is risky

The problem is that a lot of people jump in too quick. They might take some basic courses online and then start investing their money. What happens is that a lot of the people that invest their money end up making mistakes and buying some bad domains. And when they buy these bad domains, just because they spent maybe $500, $1000, $2000, $5000, $10,000 on these domains, doesn’t necessarily mean they’re valuable. So it’s not like stocks. If I buy $5000 worth of stock – even if it goes down by 50 percent – there’s still value there. With domains, that’s not necessarily the case.

There are many domains out there that people buy because they read in a book about what makes a domain name valuable. And they just go and purchase it, now stuck holding the bag. If you buy too many of these every year, you may wake up and have to pay \$8, \$9, \$10, maybe \$20, \$50 a year in registrations. This can then become thousands of dollars, and you’re just getting in deeper and deeper and deeper. So there’s a lot of risk with domain investing. It can turn out to be a lot of overhead and potentially zero rewards.

Do Your Research

But at the same time, I know people that have purchased domains. People successfully do this on a regular basis – you can read about these people on different blogs in the industry like Domain Investing, The Domains, DN Journal. They have been massively successful and continue to be. And they’re great business people – they look at statistics, they don’t fall in love with too many domains, they have some that they really like but they aren’t afraid to cut their losses and make a sale to liquidate. Then, they’ll buy something else demanding.

It can be a very lucrative business, one that you could do full-time and make a great living. You could save for retirement and maybe do some development on the side and build other businesses. It’s a fun, exciting industry and I can’t imagine myself being anything else. I couldn’t be happier with it.

Is there a place that there could be better returns? I’m sure, but when it comes to making money and a degree of happiness, having the freedom to work when you want and how you want… I’m not sure things get much better than the domain business. And I hope it doesn’t change.

More About Saw.com

With Saw.com domain brokers, anyone can buy a domain, sell a domain name or protect a domain name. If you are interested in speaking with an expert from our domain brokerage service about purchasing a domain name to invest in, please contact us for a free consultation.