What You Need To Succeed in The Domain Business – Part 1

I routinely have people ask me about what it takes to succeed in the domain business. Oftentimes, they have heard about one or more large sales and visions of quick money float around in their heads. Through our various domain training services offered through Doma.in, we have also worked with many people who are just getting started in the domain business.

The domain industry is like any other business: it takes a lot of work, it takes training and education and if you want to see accelerated growth, you should have at least a small bankroll to get started.

It’s definitely not as simple as hand-registering a handful of domains and having offers for hundreds of thousands of dollars pour in!

It’s also quite difficult without a lot of knowledge and a decent amount of cash to turn an interest in domains into a full-time income source.

That being said, we routinely work with people who have managed to turn an initial $500 to $2000 investment into a nice sideline income source within a one year time frame. More capital and more skills can result in a full-time income within this same period.

I’ll give you a checklist of some of the things you should learn before you get started in the business:

  • What kinds of domains are selling and for what price range? Sites like http://dnjournal.com which publish weekly sales reports can be helpful in this respect.
  • What a domain push is and at the registrars you are likely to use, how they work.
  • What a domain transfer from one registrar to another is and what conditions must be met for transfers to work.
  • How to safely pay for a domain purchased on the secondary market (when you buy a pre-existing domain).
  • How to safely sell a domain you sell on the secondary market.
  • What a domain lock is.
  • Which are the major marketplaces and what are the fees to list and sell domains.
  • What can you do with a domain you haven’t yet sold (develop, lead generation, parking, sales pages).
  • What is the difference in value and requirements for different gTLDs and ccTLDs (and what are gTLDs and ccTLDs).
  • Legal issues – for example, how to check trademark registrations.
  • How to conduct research on domains – from search volume, advertiser interest to the history of individual domains.
Once you have a firm grasp of these basics, you’ll want to consider the development of a plan that takes into account the following:
  • What niche(s) will you focus on?
  • What is your portfolio development plan?
  • How will you find domains to add to your portfolio?
  • What will your cash flow strategy be? Will you re-invest all profits? Will you add additional funds from other income sources to your domain business?
  • What will you do with domains while waiting to sell them?
  • How will you market domains you have available for sale?
  • How much time do you have to commit?
  • How will you structure the business you buy and sell domains from?
  • Will you be focused on selling for higher prices (meaning a potentially longer wait) or for the first offer to put you in profit?
  • What skills/resources/contacts do you have available to help you build a domain business?
  • What skills/resources/contacts do you need to acquire to further grow your domain business?
Where many people go wrong with getting started in the domain business is that they don’t look before they leap. They’ll learn a tiny bit about the domain business and then dive in. Then they find themselves out of cash before they know it.  If you spend maybe 20-30 hours learning and then another 5-20 hours developing a solid plan, you stand a much better chance of succeeding.
In a future post, I’ll be sharing some thoughts that go beyond the above – the things that make the difference between making an income and creating a lifestyle with a domain business.

Read Part 2


One Comment on “What You Need To Succeed in The Domain Business – Part 1”

  1. Sharon Hayes says:

    Reblogged this on Sharon Hayes Dot Com.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s