If you are not constantly assessing and reassessing your domaining strategy and implementing change you are going to wind up being one of those domainers who gives up after a year or two because you couldn’t turn a profit. Domaining draws people in because of the perception of relative ease. It is simple after all, you sit behind a computer, buy an asset that is stored digitally, sell it and deliver it digitally, and profit. Right? Unfortunately for people who have that perception there’s a lot more that goes into doing this successfully and probably the most important part is a constant reassessment of what you are buying.
A simple example would be buying domains that had the word “cyber” in them was hot… about 17 years ago. How are those domains doing today? And I see domains with that word in them come up for auction every now and again and there are buyers for them. Really? Show me a recent end user sale with that word in it. A very meaningful way to see what is going on out there is to read through the weekly/monthly domain sales lists that are published. There will be many one time outliers in the list. Creating a strategy around an outlier is stupid. But if you really spend the time digging into the lists you’ll be able to see patterns over time and the direction that buyers are going. Knowing what buyers want is critical and it is possible if you put in the time. But just because you develop a strategy today does not mean that strategy will be valid tomorrow. Change is constant and if you are stagnant or lazy and don’t keep analyzing your strategy will become outdated rather quickly.
When you put in the time you will become a more confident buyer. Becoming a confident buyer is important. If you are bidding on a domain and the bids are at $500 and you start to waver and are unsure if you should bid more you could possibly lose out on a great deal. But if you’ve spent the time doing the analytics you know what price range is right and you can confidently bid up to the range or you can confidently walk away if the domain is becoming overpriced and laugh at the guy who just overpaid. Maybe he’ll sell you the domain at a discount when he can’t move it.