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Getting Started in Domain Investing: Low and High Budget Advice.

Those of you that really know us, have known about a little secret that we are involved in.

Over the past few months, XF.com has been working diligently at getting “real world” investors involved in domain buying.

We have spent $xx,xxx per month for the past few months in trying to promote our industry to outsiders, while helping these investors put their money in assets other than stocks and real estate.

While helping both the big spender and the low-budget buyer, the #1 question is :  “HOW DO I GET STARTED”.

While most of our advice for the low-budget buyer can be found in DNJournal’s cover story linked here:

http://www.dnjournal.com/cover/2009/september.htm

We would like to offer a bit of advice for both the little and big spender.

NOTE:  Some of you reading this blog are here due to our advertising initiative and “out side investor campaign”… this is for you.

HIGH BUDGET:

A:  If you are one fortunate to have a large budget to invest in this space, there are only three categories of domains that I would recommend “jumping in” with.

 

1:  one word brand names
2:  one or two word product/service domains
3:  one word geo-location domains

A killer brand or product name will endure the ups and downs of the economy, and hold it’s value better than any other domain.

A brand name always has a place — and will be coveted/desired by companies and investors for years to come.
A top tier product name will always receive direct traffic, generating income, while maintaining the possibility of a buy out by a large company down the road.
A top “geo location” will always have a use and a demand… I don’t think France or Nevada are going anywhere ;)

Contact us if you would like to see a list of “strong buys” in the market.
We don’t get compensated for a referral… we’re trying to help mesh buyers with good investments.

B:  QUALITY over QUANTITY.  One killer domain will do more for you than 5000 “just OK” domains.  The top tier domain offers the ability to build out a monster site in the future or establish potential partnerships.

C:  Talk to an expert before buying. 
Don’t make a $500,000 mistake.
There are A LOT of domains priced at $100,000 – $1,000,000 that have no business being priced in this class. 
Talk to an industry expert, a blogger, a broker before jumping in at this volume.
You can easily make a $500,000 mistake and buy a name that’s isn’t worth 1/10 of the purchase price.

On the other hand, you could easily buy a name priced at $200,000 that will be worth $700,000 when the economy picks back up.

This is a great industry full of incredible opportunities.

D:  Compare this industry to what you know.
Are you well versed in real estate?  These two industries parallel each-other.

The value of the domain name can be likened to that lot on the beach in Southern California.  They aren’t making any more like it, and the value is in the lot itself and the domain itself. 
No matter what you build on that lot (or domain) you can tear it down and the value is in the original lot.

However, domains offer GLOBAL opportunites with GLOBAL exposure and GLOBAL buyers.

Invest $250,000 in a rental home in your community… and there is a 0% chance of a buyer from London calling you and offering you $750,000.  ZERO.  NONE.

However, invest $250,000 in a domain, and your potential buyers are all over the world. 

We have many pieces of advice for the large investor, and we don’t get paid for the advice or any referrals. 

Contact us with any questions or if you need direction:

admin@XF.com


LOW BUDGET:

Read the interview here:

http://www.dnjournal.com/cover/2009/september.htm

Be sure to email if you  need help, but the bottom half of the interview outlined our progression, and it might help you find some direction on where to start and how to proceed.

Most people fall into this category.

BizDEV@XF.com

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11 Responses to “Getting Started in Domain Investing: Low and High Budget Advice.”

  1. [...] This post was mentioned on Twitter by Tia Wood, Bruce Marler. Bruce Marler said: RT @tiawood: Get Started in Domain Investing:Low/High Budget Advice. http://bit.ly/34v88W [...]

  2. Social comments and analytics for this post…

    This post was mentioned on Twitter by tiawood: Get Started in Domain Investing:Low/High Budget Advice. http://bit.ly/34v88W…

  3. Great advice and I would also add that someone just getting started and wanting to get a baseline estimate of relative demand for a domain need look no further than the keyword data provided directly from Google. This can be found at the Google Adwords External Keyword Tool (this is the data source that our domain finding tools pull real time data from) and other Google tools.

  4. Robbie says:

    Great Post Aron – I would also like to offer FREE advice to anyone interested in buying / selling there domain name.

    Feel free to pass on my details to any relevant parties.

    Regards,

    Robbie

  5. williamhite says:

    Need help with the valuation of the .mx example rings.mx. Will the .mx ever have global value? Congratulations “Symbolics” the king in our view. Thank You for offering your advise, many of us need honest advise. Can your recommend to us domains you think are worthy of the $200,000-$500,000 range. Thank You from WilliamBlairpinc and Staff. WilliamH

  6. Aron…you are correct. As the economy comes back, our industry will see much more interest from the investment community, both private and corporate. We need blogs like this, as the more information that is available for potential investors, the better. I know you were considering several options with what to do with Symbolics.com…and I believe you made an excellent choice in making this your blog and showplace. I will support your efforts 100 percent. Thanks.

  7. admin says:

    Yes, send me an email at bizdev@XF.com and I’ll point you in the direction of
    good names with that value.

  8. admin says:

    Thanks Fred.

    My goals and efforts are to reach the outside investors…

    We’re working on it… I know you are too!

  9. [...] Symbolics.com – Getting Started in Domain Investing: Low and High Budget Advice [...]

  10. [...] Symbolics.com – Getting Started in Domain Investing: Low and High Budget Advice [...]

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