Domaining

[Drazen]

I've been thinking recently how to increase my low income and have stumbled upon this Domaining business - http://en.wikipedia.org/wiki/Domain_name_speculation

I've searched around about it on some forums and other places on the net, but I'm not sure would this be a good thing to try (it's maybe too risky) and invest some money in it. Does anyone here has any experience with it and would you recommend it?

There are some "experienced" guys on the net who are selling their whole knowledge acquired through years of doing this business and who made small fortunes from it. While it would be a huge help to start with such knowledge, I don't want to pay for something like that and discover that they have tricked me.

My job situation doesn't look good, my job contract expires at the end of the year and I've heard rumors that my employer will not prolong it further due to company's bad business year. They've lowered our salaries and that's why I'm searching for some additional source of income.

 

[RedFox]

From the looks of it, you would probably need a lot of capital to invest in domains that you are expecting others to buy in the future.
You could probably do it by spending a great deal of time researching up and coming/newly formed businesses.
I doubt however you would be able to turn a profit quickly.

There are some "experienced" guys on the net who are selling their whole knowledge acquired through years of doing this business and who made small fortunes from it. While it would be a huge help to start with such knowledge, I don't want to pay for something like that and discover that they have tricked me.

Yup, and that's how they are probably becoming rich. Anyone who sells 'opportunity' knowledge is usually selling nothing, on the back of people who desperately need to make money. They will have run businesses off of the same desperation too - people who work for nothing and very long hours in order to make such businesses a success, and the guy in charge will get rich, sell the business and then 'sell the knowledge'.

My job situation doesn't look good, my job contract expires at the end of the year and I've heard rumors that my employer will not prolong it further due to company's bad business year. They've lowered our salaries and that's why I'm searching for some additional source of income.

I'm sorry to hear that Drazen. Perhaps you could share this in the swamp or FOTCM section, what your situation and skills are, to get some more objective feedback?

 

[lostinself]

I did it in the past. Well, sort of - my way was to "hunt" for recently expired domains, re-register them cheaply and put on them auctions. I've also tried inventing domain names. It all wasn't very successful; i remember selling one domain for a relatively sensible price. Guess it could have been worse if i had started buying domains and reselling them. In the end i decided the whole thing was just stupid, and quit.

As for my advice - if you haven't invested before and you're under financial pressure, i think you probably should give it up. There's something seductive about domain name speculation but eventually it's much like any other investment activity. It requires dedication, knowledge and lots of patience. You have to have that peace of mind that allows one to make balanced, rational decisions. Crucial thing here is the margin of safety, ie. as a rule, you have to be prepared for the possibility of loosing all your deposits. If you're hard-pressed and in need of money, you probably don't have that margin and your actions are often driven by haste which isn't a good advisor.

Regarding those "experts" you mention, perhaps they have some worthy knowledge to share (sell), but even if so, i doubt it would be useful for someone with limited funds.

Besides, when it comes to investing in domain names, this way you actually don't do anything constructive with the money. More like the contrary, you create a friction for those who do and you live off the energy they loose on that friction. Perhaps all speculation is just that.

Sorry if the above sounds hopeless but i really think it's not a good solution. If you're a member of FOTCM, perhaps indeed you could ask for more specific advice in the dedicated section of the forum.

 

[Drazen]

Thanks guys for your advices.

Yes, this business doesn't look like something worthy of my money and time, especially now.
I will definitely write more about my situation in swamp or FOTCM section.

 

[Mark]

Thanks guys for your advices.

Yes, this business doesn't look like something worthy of my money and time, especially now.
I will definitely write more about my situation in swamp or FOTCM section.

I find the practice to be predatory and harmful in general. I've wanted a few different domains over the years - for actual use! - only to find what we techies typically call a 'camper' squatting on them for no other reason than to profit ( with zero work done for the profit ). In other words people grab the domain and make no use of it whatsoever - no Web site and no potential use intended, just a flat out 'for sale to the highest bidder' type of thing.

Probably a bad idea to get into that game, for members of this group anyway. I seriously doubt there would be any STO involved in that process, not even a smidgen. Or at least that's my perspective.

 

[Drazen]

Thanks guys for your advices.

Yes, this business doesn't look like something worthy of my money and time, especially now.
I will definitely write more about my situation in swamp or FOTCM section.

I find the practice to be predatory and harmful in general. I've wanted a few different domains over the years - for actual use! - only to find what we techies typically call a 'camper' squatting on them for no other reason than to profit ( with zero work done for the profit ). In other words people grab the domain and make no use of it whatsoever - no Web site and no potential use intended, just a flat out 'for sale to the highest bidder' type of thing.

Probably a bad idea to get into that game, for members of this group anyway. I seriously doubt there would be any STO involved in that process, not even a smidgen. Or at least that's my perspective.

You're right, m. That's not what I would want to do. Thanks for explaining the nature of this business to me.