Get Rich Quick in Domain Name Investing
I received a refund request at DNAcademy this week. The reason?
The student was disappointed that he couldn’t get rich quick in domain name investing.
But stay tuned because I’m going to tell you exactly how you should be thinking about investing in domain names going forward.
A customer signed up for DNAcademy just under two weeks ago. They went through about half the course, and then sent in a request to cancel their account.
No issue. DNAcademy offers a 100% satisfaction guarantee for a full two weeks. But I like to find out if there was anything we can do to improve the course, so I ask.
The customer’s response was: “I can’t find any one word generic domain names to buy within my budget, so I can’t make any money.”
And it’s a shame that they canceled, because people make money investing in domain names every single day.
But I’m not a high pressure sales person. I’m not going to talk them into staying once they’ve asked to cancel.
The fact is that the time to buy good one word generic domain names in the .com top-level domain space for under a few thousand dollars is long gone.
But here is what I will tell you, the watchers and listeners of this video podcast: the time to invest in domain names is just getting started.
Let me give you a simple example…
Tess Diaz runs DomainSherpa.com, a video interview show focused on domain names and domain name investing. On August 26, 2019, Tess published a fantastic interview with an investor named Logan Flatt about a domain name he recently sold. Twice. I’ll put a link below to that show, which is free to watch.
The domain name is CryptoCPA.com.
Crypto refers to cryptocurrency, and CPA is an acronym for Certified Public Accountant.
Here’s a quick synopsis of the life and times of the CryptoCPA.com domain name:
In 2013, someone thought up the name CryptoCPA.com and hand registered it for about $10. But that person did not renew it, so it expired in 2014 and became available for registration again.
Two years later in 2016, another person thought of the name and hand registered it for about $10. But, again, they let it expire and it dropped in 2017. This time it went to auction and was purchased by Logan Flatt for $144 in July 2017.
Logan then put a buy-it-now price on the domain name and waited.
A year later, in 2018, Logan sold it for $10,000 through a payment plan with $3,000 down and the remainder in a few months. But the buyer’s business plan fell apart and he ended up walking away from the purchase. In that case, Logan kept the good faith deposit of $3,000 and then got the domain name back to do with as he pleased.
Again, Logan put it up for sale.
A year later, in 2019, Logan sold the domain name AGAIN but this time for $12,000 through a broker.
Selling the domain name twice provided Logan with $15,200 in proceeds from the sale.
After the broker’s 20% commission of $2,400, and including a transfer/renewal fee of about $9, Logan took home a gross profit (before taxes) of about $12,600.
For anyone that’s been trained in DNAcademy, you understand that there are six types of domain names.
Isn’t a one word generic domain name.
It isn’t an exact match domain name…in fact, it only gets 110 exact match searches per month. That’s nothing.
It’s not a high value acronym, numeric or alphanumeric domain name.
It’s just a regular brandable domain name that in DNAcademy we classify as a “compound brandable” – because it’s a combination of words that exist in the dictionary but are not exact-match keywords.
Why did I tell you this really long story?
Because of the six types of keyword domain names we teach in DNAcademy, if you don’t have thousands of dollars to invest in domain names, like most of us, then you need to focus on either exact match domain names or brandable domain names.
And Logan Flatt gave a perfect example of a brandable domain name that clearly has value, but not everyone saw it like he did.
How did he see it?
One: He saw that the domain name was registered previously, but dropped. You can see that on archive.org sometimes, if there’s a website. But most likely you’d need a paid account on DomainTools.com or domainIQ.com to see domain name’s registration history. That told Logan that there was previous interest in the name.
Two: He watches the expired domain name auctions for domains that focus on his area of expertise, which is financial services. He knows that industry, has experience in that industry, follows sales and trends in that industry, and that gives him more confidence in his purchases.
And three: He understands that the domain names he buys must have a commercial application for them to be interesting enough for current or startup business owners to pay thousands of dollars for.
And it shows. In two years, Logan made $12,600 on his out-of-pocket expenses of $154.
Even if Logan was the very first person to think of and register the domain name back in 2013, he would have held it only four years longer, which would have cost him about $36 more.
Domain name investing is not a get rich quick system. It’s a buy a good asset, have patience, and sell it for market value type of investing system. I wish the student that canceled would have seen this video before they signed up, but at least here it is now.
Domain name investing takes time for the perfect buyer to think of, find, and negotiate to purchase your domain name. It seldomly happens in one year.
But if you buy smart, buy domain names that businesses want, and have patience – you will be rewarded with profits.
Thank you so much for making the decision to watch or listen to the DNAcademy blog.
If you want to learn a methodology, master a set of tools, and think more analytically on your journey to becoming a more profitable domain name investor, consider signing up for DNAcademy.
My name is Michael Cyger and I’m here to help you become a more profitable domain name investor.
Please subscribe to this podcast and I’ll see you in the next episode.