There’s a lot of people who toot their own horn when they have a big sale. While sales figures can be impressive when you hear them, sales figures are a relative metric. The true metric is profit and ROI %. If a domain sells for $100k you may be impressed by the sale. Would you be as impressed if you learned the seller purchased that domain for $99k? It’s funny because if you hear a domain sold for $1,000 you wouldn’t blink, but if that person hand registered the domain for $9 then their profit in true dollar terms is equivalent to the hypothetical $100k scenario, and their ROI % is astronomical compared to the $100k sale.

Something I see often is when a domain sells for a very favorable price, let’s say $25k to $50k range, and everyone wonders how in the world that domain sold for that price because clearly it is not a $25k-$50k domain to anyone (except the purchaser). People think the seller is on to something and some people want to emulate him. Would you be as impressed if you found out the seller owned 100,000 domains and the asking price on most of them was $25k or more? And you only hear about this type of sale once a month? Now is that something you want to jump feet first in after?

A lot of articles, blog posts, press releases and the like do not lay out the full story for you, because the full story is not as impressive as a snippet that is shared. The best way to learn is to do… unless you are lucky enough to find a mentor who is totally open with you. Focus on creating a profitable business for yourself and don’t worry about the headlines or trying to follow what you perceive is working well for someone else. You rarely get the full story, and believe me, the full story is never as awe inspiring as the headline.

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