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How to invest in domain names…

December 15, 2008 | Written by -GRUMBA- | Topic: Advice | Comments (0)

Relative to some, I am extremely new to domain name investment. However to say I did my research would be the understatement of the century. I have fortunately had a LOT of contact, with a lot of people who have mentored me thus far.

I now have approximately half of what I started this adventure with, and I am having a tough time deciding how I should proceed.

The economy is not at all like what it used to be. I see people posting: ‘Invest in stocks!’; ‘Buy Gold!’; ‘Buy Money!’; the list goes on. The question is, is domaining what it used to be, and can I really make a living from it?

I want to buy a LL.com. I want to buy a LL.net. I want to buy a LL.org. I want to buy lots of LLL.com. I want to buy some great generics. I will be extremely lucky to be able to complete one of those with my available funds. To reach all those ‘targets’ I would actually have to invest: buy, sell, trade etc. The old bigger, and better philosophy. Buy low, sell high etc. Easier said than done of course.

You can buy a LLL.com cheaper than ever before now, however it is not actually cheaper. I would hesitate to buy a LLL.com for $4k now whereas I would have jumped on it had I been around a year or two ago. The reason is $4k costs more GBP than it did before.

If you get lucky, and find a cheap LLL.com for say $3,000 USD. You now have an asset which you simply cannot sell. People need money at the moment, hence why they are selling on the cheap. This means you cannot do a quick flip. This is where my problem arises. Should I have these opportunities, I can buy BUT I MUST hold. This therefore means I cannot sell high, reinvest, and continue on my circle of money making madness.

I am going to keep this short, and sweet. In answer to my question/statement ‘How to invest in domain names…’ the answer is buy low, stop, and wait – Hesitate at all times, Think carefully. Something may seem like a bargain but don’t rush, consider the economy. Contrary to popular belief this has a HUGE influence.
Once you have your prized assets hold them, develop them. Make money of development, and reinvest it. Hold you domains until we are out of recession.

New to the business: Great! (In some respects you are in a better position than the old hands: those who bought cheap at the time, but have since seen their investments lose value AND liquidity). Got money to invest? Great! You are all set to go.
What I would say is that if you know in your heart of hearts you cant afford to invest, DONT. Riding the wave out of recession is going to take a long time, and not many seem to make it big in this business. Lets just hope I am one of those few!

Best of Luck!

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