Top 10 Tips for Domain Name Investing in 2013; Both Left and Right of the new Dot



Employing a domain name brokerage is hyper-critical in the new age of domaining.

Know how to find the right domain. If you are new to domain investing, then here is a tip. Pick the right name, brand, and industry then make sure it is a personal passion. In a perfect world, an investor buys a premium domain name, fully develops it, and either lives off the revenues, or resells for multiple revenues and looking to reinvest in a underdeveloped asset. Then the process repeats. Whether you start with one good name or build your portfolio, a domain broker would love to help you accomplish your goals.


Know the best place to buy a domain. The best place to buy a premium domain name is from a premium domain name broker; this broker knows the market and the best opportunities. As a client you should know all the auctions, domain drops, newsletters, and private inventories. Other websites and brokerage companies can help find you a great match for your passion. You save time, money, and much more.


Know the best types of domains. Dot com is always king and the shorter the better. Even the new TLD’s like .music, .law may be limited. They will not trump the most globally branded term in human history, “.com”. Some seasoned domainers like premium generics, dictionary words, commercial names, geo-target domains, traffic domains, typos, trademarked domains, vanity phone number domains, LLL’s (Letter), brandable, and other extensions and TLD’s like .net, .org, .biz, .info, and other country codes. We avoid trademarked domains, hyphens, numbers, long-tail names, country codes, and adult or obscenities.


Know your business model, plan, and brand. Any name that passes the smell test can be developed but an investor needs much more. Like anything, if you have a passion for it, success normally follows. Are you wanting a passive long-term investment or are you looking to develop something from scratch? With a good budget we recommend a one word commercial dot com premium domain name. If you can’t pronounce it, visualize it on a billboard, or just feel good about saying it; then take a fast pass. If you are the owner of a category-killer com domain name, lock that think up in a vault.


Know history and due diligence. We touched on tools; we like to start with the history. I want to know when the domain was created, when it expires, or if it ever expired, who are the owners, is it private, who is, the registrar, name servers, page rank, back links, analytics, and history with any archived pages of the website. I want to know how it was managed, any campaigns, any social media, agreements, subscriptions, and key people. What are the trends? The more you know about the asset the better, and a domain broker normally does all of this and more for free.


Know appraisals and valuations. Buying a premium domain or website takes some skill. Placing a value on an internet property is not easy; some business valuations may even require a specific certified public accounting firm. There are some decent online tools, but none are perfect yet. Your domain, website, or business broker can help you find the answers to the toughest questions. We can do the research and set a price target for you within days. Call the brokerage desk for more info.


Know the transfer process. Once you have selected a target, a stealth acquisition should begin. Sometimes even finding the right people can be daunting. Don’t think a company like Apple or Microsoft is going to spring into action because you made an offer. Maybe the guy working out of his mom’s basement wants a million to even start talking to you. Domain brokers have seen it. Knowing how to negotiate is also mission critical. Like real estate investing, it is not the selling price; it is the buying price. Picking up a $10 dollar name and flipping for 1k, 5k, or 50k, the ROI numbers are fun to calculate. Contracts, escrows, and transfers all take attention to detail. Hire a domain broker and escrow company that does this for a living every day.


Know how to organize a team. Start with your domain broker. Next, get the right developers; normally one for design and one for code. We have seen people sit on their domain investments long-term. We recommend developing the brand, even if minimally. Finding the right teams, at the price is critical. We know that the sooner you start, the more income and value you can have. With the right team you can be helped. We understand it is part of a diversified asset portfolio; you may live off these assets or pass them down.


Know how to build for resale. Let’s face it. Either a property makes money with a positive growth rate, or it doesn’t. Executing your brand and customer experience comes first, and the other normally follows in line. Your thinking should include vendor, affiliates, other industry key people, as well as cost management, people management, social media, time management, reputation management, budgets, and so on. If you are a successful business person, this should all come naturally. If not, refer to one of the topics above and find the right executive team. A broker can get you great multiple opportunities. Every dollar earned or saved can bring some nice returns down the road. Be the king or queen of multi-tasking.


Know how to find the best domain broker. Your exclusive domain broker can help you find domain opportunities, do domain research, set domain pricing, negotiate domain prices, and transfer your premium domain names. Also, they can also help guide the development and eventual resale process too. See our article on Top 10 Tips for Building a Domain Name or speak with a live broker at 1-855-TO-DIVEST to find the hottest domain name and website opportunities today.


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