What Domains Should You Buy?

Somebody asked me this week which domains they should buy to "make the most money".

This question or variants of it, are probably the most commonly asked of most domainers, by people wanting to get into the industry, or those who just simply don't believe that you can money from this game.

The answer I gave was the same one that the world's greatest investor, Warren Buffet always gives when he's asked which stocks to buy. The answer is, "Buy what you know".

Domaining and investing are very similar, in fact, done correctly, domaining should be an investment.

In the investment markets, people think they can come in and make a quick killing by doing day trading - that's buying shares one day, only to sell them later in the day, or within a very short timescale, hopefully for a profit.

Many domainers (especially newcomers) apply the same strategy to their domains - they think that they can register a new domain name and then pop along to Ebay, Sedo or Afternic and sell their newly acquired name for a profit.

This isn't investing, it's speculation or opportunism, often with no foundation and nothing more than blind hope.

It's also the quickest way to losing your money.

Like stock investing, a domain portfolio performs best when held for the long term.

Just like the stock market, it's also best to buy names in markets that you understand and can write about.

If you know a particular niche market, buy relevant names that you know people will be searching online for.

When I first started out, I bought recruitment names, because I had many years experience as a recruiter. I still own those names today, up to 10 years later. All they cost me is the renewal fees, though many earn their keep (and more) from Google Adsense.

They do this because I understand the recruitment industry and so was able to write unique content for the mini sites I published.

I try to keep to this strategy of buying only what I know, but occasionally of course, I do deviate - but that is with the knowledge of the Internet behind me, together with specialist search engine optimisation skills.

Beginners simply can't do that.

2008

At a time of year when most people make resolutions, I am bucking the trend.

Most new year's resolutions don't make it. Maybe it's the time of year...

Last year, I decided to unsibscribe from many of the domain and Internet Marketing forums I frequented, but this wasn't a new year's resolution, it was a mid-year crisis caused by lack of concentration and a need to focus.

Put simply, it was a realisation that I was getting sloppy, something that's easy to do when you work from home and have a lot of spare time, supposedly!

That has paid dividends and has freed up so much time that I really have struggled at times to know what to do.

My kids (all boys, 18, 15 and 7) have experienced more time with me and have seen a more relaxed father - apart from when the house renovation has got me stressed beyond my comfort level - which sadly, has been a feature of December.

Reading back on some of my blog entries also made me realise that sometimes during the past couple of months, I have posted the occasional rant that is not befitting this blog, so I've deleted some of them and apologise unconditionally for allowing the day to day crap affect what should be an educational and enjoyable blog experience.

Yes, David Carter is a human and is affected by the pressures that affects everyone - and why not? Afterall, I'm no different to anyone reading this and have the same pressures as everyone else trying to make their way through this thing called life.

Sometime soon, I hope to change the entire "David-Carter.com" web site so that it makes a lot more sense and is a lot more helpful to the people who visit.

My approach has always been to help others wherever I can in all things that are internet related. That will continue, but with more emphasis on "you" rather than "me".

Is that a resolution? Oh I hope it isn't!

Have a great 2008. Let's see where 2008 gets us.

For the record, here are my online development priorities for 2008, I will stand back and be judged on the success of these:

3) www.windowquote.co.uk

1) www.commercial-property.co.uk

2) www.tributeact.com

Look at these sites at the END of January to see what they have become, because I have three different teams involved in their development.

I have numbered them in terms of their importance to me.

It's my hope that in sub-contracting the technical stuff to others, using only my vision as the template, that something wonderful can happen.

If it doesn't, then my total risk is somewhere in the region of £3000 - and each one of those sites can be it's own business.

How wonderful is the Internet and domaining?

Let's face it, you couldn't open 3 shops for that little investment could you?

Now do you see the potential of domaining where each domain could be a complete business in a box?

If it doesn't work, so what?

If it does, I'll see you in the Bahamas this time next year!