In recent articles, we’ve been discussing the basic aspects of domain name investing. Some of you may be wondering what type of people go on to become successful domainers. As we’ve alluded to, the prospects of success are markedly different from the perceptions people often form. With that said, there are some general characteristics associated with successful domainers.
Financial Savviness: Because domainers are dealing with an investment, their sound ability to manage finances is of prudence. Not only does this include budgeting purchases and forecasting sales correctly, but understanding cash flow also. Domainers also place an emphasis on being able to value a domain, as it will dictate their future finances.
Good Judgement: Picking out the better domains requires a degree of intuition. While it’s possible to learn this on the go, domainers save themselves a lot of trial and error by employing a methodical approach to their decision making. Rather than purchasing on impulse, or taking a ‘punt’ on a particular domain, they understand the key factors that will shape their purchase. Successful domainers think ahead about a domain’s resale. They make contingency plans in the event they need to cut their losses, particularly as this will benefit their portfolio in the long run.
Patience: It’s important that domainers have the patience to see through the investment horizon on their domain purchase. Acquiring a domain and expecting to make money within a week, or month for that matter, is not investing – it’s speculating. And while some domainers opt to allocate a portion of their portfolio towards speculative investments, they usually do not base their approach around this – after all, domains can take months, or years, to appreciate in value.
Commitment: Domainers also demonstrate commitment, so far as being able to continue investing even when things are going against them. Not every domain purchased will make money. In fact, some will almost certainly lose money. But despite the knocks, domainers who are serious about investing find a way to overcome this and remain committed to the cause.
Inquisitive Nature: Something that separates the better performing domainers from the rest is their approach to knowledge. Successful investors regularly follow industry news and proceedings, sales results, analyse keyword search traffic, study trends, and engage with their peers, while also keeping informed of general news to predict what might take off next.
Strong Negotiator: At some point, most domainers will acquire or sell domains through private transactions. The tactics for each negotiation are likely to differ from one to the next, but the confidence of a domainer, and their ability to justify their position to the other party, is one of their key attributes.
That’s it for this occasion, stay tuned for our next educational article. If you have any questions, don’t hesitate to contact us.
Best wishes,
The Netfleet Team
This information on this website is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any financial product.
This post is tagged: characteristics; domainers; domain name investing
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