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Domain Investor: 4 Factors for Developing Your Own Domain Investment Style

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Brad Spencer
October 09, 2008


Brad Spencer

This article originally appeared on:

http://investindomains.org/13/domain-investor-4-factors-for-developing-your-own-domain-investment-style/

Brad Spencer has written 3 articles for DomainInformer.
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So you want to be a domain investor?  Maybe you need a little extra cash on the side, or you know an industry pretty well, or you’ve got an entrepreneurial streak a mile wide… No matter what your reasons, becoming a domain investor is as easy as buying a domain name.

Technically buying a domain with the hope of selling it is enough to make you a domain investor, but if you only ever go that far then you’ll be stuck in the ranks of most investors.

To successfully invest in anything, including Domains, you have to have a strategy.  Developing a strategy that works for you and your goals is paramount to doing well in Domain Investing.

In this article I’ll introduce you to a few factors to consider while develping your own personal Domain Investment Strategy, as well as provide you with some resources for further reading.

1.  Domain Investing Budget:

What’s your budget for investing?  Decide before you get started.  Are you going to have $40 dollars per week for the next year, or do you have $5,000 now?  Or something in between?  Deciding how much and when you are going to make some investments is crucial to deciding what direction you are going to move in.

2.  Domain Investing Time:

When do you need to start getting money back from this domain investment?  Are you looking to cash out within the next year?  If so, a fix-and-flip domain might be your best choice.  Are you looking to hold onto the investment for 20 years and pull a little bit of profit from clicks over that time?  Well then you might want to buy domains you see having a good future.

3.  Fix-N-Flip or Buy-N-Hold:

This is sort of like the factor above- Domain Investment Time.  Depending on how long you want your money to be invested, you might have to take an approach that is more congruent to your budget and timeframe.

I know that’s a mouthful.  Let’s simplify it a bit.

Some people are fix and flip domain guys.  That’s their style.  They profile domains to meet those characteristics.  I tend to think this is a bit more risky, because if you have to be out of an investment within a few monthes timeframe, then you really have to hope the marekt doesn’t go sour or you don’t have a problem finding a buyer.

On the other hand, if you want to buy-and-hold, then you can limit your short term potential.  Most of the time you won’t “hit the lottery” when you buy and hold.  But it all depends on your style.

4.  Domain Investing Financial Priorities:

Ultimately, the style you develop should cater to whatever your priorities are.  Whther that be long-term capital gains, or making a quick buck.  You’ve got to decide which it is (or what the balance is going to be) and stick to it!

Well, How Do I get Started as a Domain Investor Then?

If you are starting a carpentry business, you are going to need some tools.  It’s the same thing as starting a domaining business.

None of the tools I’m about to show you are free.  Neither is a hammer.  But free only gets you so far, so let’s take a look at some real domaining tools:

  1. Snap Up Domain Names the Second they become available with ENOM. This program will sit on your computer and send thousands of requests to domain registrars the SECOND a domain name becomes available so you can get it before everyone else. It’s pretty simple, works quickly, and you don’t want to be without this program when sex.com or shoes.com comes available by some fluke. Learn more about ENOM by clicking here
  2. Monetize and Edit all of your domains from one place. If you are doing everything right, then you are going to get a lot of domain names pretty quickly. And you aren’t going to want to edit each one by hand every time you sell ad space on it, or want to redirect it, or want to sell it. So if you want to be able to handle these domains all from one spot… tracking, ads, content, and everything…. you are going to need a world class tool to make that happen. That’s what Domain Dashboard does. Check out some videos about Domain Dashboard here and then try to remember what life was like before you got it. Learn more about Domain Dashboard here.
  3. Sift through thousands of expiring domains names by the hour or day. You just can’t be everywhere at once. You need some sort of tool to let you know when a domain expires that you might want. And who has time to check into a service every hour or day to see what’s available? Even if you have that time now, you won’t in 6 months if your Domaining business is going great. And that’s why JustDropped has made a little program that sifts through all of the expiring domain names and will EMAIL you a list that meets your criteria. So you could save, for instance… I want all keywords with the name “feet” in them, that end in a .com, and I want that email delivered every few hours. Or any variation on this. So now you can grab sweet, relevant, keyword-rich domains without having to sweat over lists of worthless and irrelevant domains. What more could you want? Learn more about JustDropped here.

Thanks, and keep domaining!

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