David Kesmodel says not too late

[petermeadit]

In his book The Domain Game, David Kesmodel says it is not too late to start investing in premium domain names. A lot of people say that it is too late really, for any newbies to get rich from domain names.

 

[helloworld]

Ooook...What else does he suggest ?

 

[petermeadit]

Ooook...What else does he suggest ?

He asks in his book: "Is too late to invest in domain names?" Then he twists the questions and asks: "Is it too late to invest in real estate? Stocks?"

I know the book was written in 2008 so the game has obviously changed since then... But it still seems like a pretty wild marketplace and not matured like the world of stock trading or other bonafide investments?

 

[Shane]

A lot of people say that it is too late really, for any newbies to get rich from domain names.

Sure they could still make money, but they're not going to get rich. Even for those who started ten years ago, I doubt there are many who 'got rich' just from trading domains.

He asks in his book: "Is too late to invest in domain names?" Then he twists the questions and asks: "Is it too late to invest in real estate? Stocks?"

Very, very few people (as a percentage of those who try) get rich from investing in real estate or shares either, so it's not a great observation.

What is rich anyway? Some people think that having a McMansion (with a massive mortgage) and a Mercedes (leased) makes them rich, whilst others will make millions and not consider themselves rich.

 

[Chris.C]

"Is it too late to invest in real estate? Stocks?

RE & Shares yield a real return that are regularly above interest rates.

Most domains don't cover their own registration costs let alone the interest costs of acquiring them.

The domain name game is largely about capital growth (or trading) if you are to invest in domains today, you are "speculating" not "investing" on thier continued capital growth.

Please note, I'm not saying domains won't continue to appreciate in value, I'm just saying they aren't like other investments.

 

[petermeadit]

What is rich anyway? Some people think that having a McMansion (with a massive mortgage) and a Mercedes (leased) makes them rich, whilst others will make millions and not consider themselves rich.

So seems a lot of people are still looking at their domain name investments thinking or hoping they will get rich and make a stack of money from those domains that have been dropping. Perhaps a more realistic approach would be shooting for a profit margin, and make steady gains each sale.

 

[snoopy]

RE & Shares yield a real return that are regularly above interest rates.

Most domains don't cover their own registration costs let alone the interest costs of acquiring them.

The domain name game is largely about capital growth (or trading) if you are to invest in domains today, you are "speculating" not "investing" on thier continued capital growth.

Please note, I'm not saying domains won't continue to appreciate in value, I'm just saying they aren't like other investments.

Excellent post. That is what it amounts to, if the reason for putting money in is capital growth it is speculation.

For those who aren't sure if it is too late or not they probably should not be putting money in as they are probably coming at it from a gambling mentality.

 

[petermeadit]

Please note, I'm not saying domains won't continue to appreciate in value, I'm just saying they aren't like other investments.

I know this conversation has been had many times here, and it is probably ongoing. I also know there are those reading who have had some extraordinary profitability from sales over the years. It is still good to see some bigger names get caught now and then, which gives hope to newbies of finding that big name.

 

[petermeadit]

For those who aren't sure if it is too late or not they probably should not be putting money in as they are probably coming at it from a gambling mentality.

A good tip to remember. Slot machine statistics for ROI...

 

[Chris.C]

So seems a lot of people are still looking at their domain name investments thinking or hoping they will get rich and make a stack of money

Hey! Leave me alone... I guy can dream can't he...

I know this conversation has been had many times here, and it is probably ongoing. I also know there are those reading who have had some extraordinary profitability from sales over the years. It is still good to see some bigger names get caught now and then, which gives hope to newbies of finding that big name.

A newbie with a bit of hustle could easily make a good living buying expiring domains on Drop and flipping them off to end-users.

Every year it gets a bit harder to do this (domain quality drops and competition for domains increases), but it's still very possible.

 

[petermeadit]

H

Every year it gets a bit harder to do this (domain quality drops and competition for domains increases), but it's still very possible.

I really like this topic because it goes the heart of domain investing. Always good to hear a range of opinions.

My own opinion is really actually quite optimistic. I actually think that domain names will continue to go up in value. I think good domain names are in high demand and will be for a long time yet.

Until they create something to replace HTTP, HTML, DNS, and the common URI, I think domain names will keep going up regardless.

So I am actually really keen to see the industry keep improving, and wanting to speak positively about the outlook.

I like the analogy of Virtual Real Estate. I just can't go past the fact that people really are looking for that perfect address.

 

[findtim]

couldn't agree more peter, what we have is a more sophisticated market from both sides of the table, I still think the business owner side is still not up there with whats happening but I am pushing them and winning so far as they now finally "GET IT"

the "death of NF AMA" has breed a new business model for finding quality domains which I am quite liking, not that I ever used AMA but as a newbie I did look and learn.

if the quality of domains dropping reduces then the savvy will start to source them directly which will actually improve the market, IMO

tim