6-figure to invest - is it a good strategy?

[emoshe]

Hello,

I am about to invest a mid 6-figure amount in domains. The idea is to park them, and build a steady monthly income.

I thought about the followng principles:

1. Only generic domains (absolutely no TM as I'm building this for years to come)

2. Only domains with type-in traffic (no SEOed or anything similiar as again, I want it to last for many years).

3. Only .COMs and no dash domains.

Would you add anything to the above?

Also, would you buy 3-4 premium domains or base your portfolio on many domains with little traffic each?

As to the monthly/yearly multiply... I am really not sure about this... I hear people pay 18 months while others buy for 7,8 or even 10 years of revenue. What is more common? Is there an average for generic domains?

Thank you all in advance for your help...!

 

[Credit]

TMs and TM typos go for 18m roughly, generic typos can go up ot 40m, generics with steady income go up to 10-15yrs.

I suggest diversifying and buying 10-20 different domains across the board, because the prices are cheap. I say get one high class (like the NN.com that was practically stolen yestrday), get one or two LLL.coms, and a few lower/mediocre level generics.

100k is not enough imo to buy for a revenue stream, especially if you are targetting generics. You won't be making nowhere near enough for it to be worth it.

 

[draggar]

Answer these questions:
1) Can you afford to lose the six figure investment? The reason why I ask is that you don't seem interested in development yet parking revenue is shrinking every day. While some domains will do well parked, most will not and need some kind of development to help out.

2) Type in traffic is hard to prove. Sure, domains like computers.com, tickets.com will get good type in traffic but it will be hard to find others. (will airlinetickets.com get a lot of traffic?).

 

[emoshe]

Thanks for your insights.

My budget is more like $300k - $400k.

That's true, type in traffic is hard to prove, but still it is there. I bought 'chatfree.com' a while back, and it gets about 30-40 UV a day only from type in traffic (no referrers). I wish I had a way to make sure it is type-in traffc before I buy new domains..

As to development, maybe in the future, but the thought was this - putting the money in the bank will get me almost nothing these days, so hopefully with parking I can get about 15% ROI / year.

As to people paying up to 15 years for generics with income... how can they afford paying so much? I mean no one knows what will happen to PPC prices in a few years, sounds like taking a big risk to me.

 

[dn-101]

Forget the revenue.
Buy distressed stuff. Prices are dropping. But it's not forever. Remember the 7 fat cows & 7 skinny cows?

Stay clear from mobi, tel, & other sh!t

 

[DomainsInc]

Don't rely on parking income for revenue. Thats my opinion at least. Some people do very well, many do not.

 

[james2002]

If you pay 18 months PPC income, sound-minded domainers will say sorry. I think should be at least 5 to 10 years income.

 

[Johnn]

People buy traffic names normally turn around and sell them. Not too many people have the gut to keep them for the long term mostly because these names are either connect with current events or typos (TM issue later).

The one figure question is how many people that you see buy traffic names and wait for years to get the ROI back?

 

[newvista]

Your timing is excellent, with $300k I would buy no more than 10 names, buy them for their inherent quality and not just revenue.

 

[Devil Dog]

Your timing is excellent, with $300k I would buy no more than 10 names, buy them for their inherent quality and not just revenue.

Exactly, in this day and age and moment in time, if I had 300k to spend on domains, I'd be foaming at the mouth with anticipation.

 

[Sonny Banks]

People buy traffic names normally turn around and sell them. Not too many people have the gut to keep them for the long term mostly because these names are either connect with current events or typos (TM issue later).

The one figure question is how many people that you see buy traffic names and wait for years to get the ROI back?

Well said Johnn.
This is not the best period to spend cash on this type of domains.

Hello,

I am about to invest a mid 6-figure amount in domains. The idea is to park them, and build a steady monthly income.

I thought about the followng principles:

1. Only generic domains (absolutely no TM as I'm building this for years to come)

2. Only domains with type-in traffic (no SEOed or anything similiar as again, I want it to last for many years).

3. Only .COMs and no dash domains.

Would you add anything to the above?

Also, would you buy 3-4 premium domains or base your portfolio on many domains with little traffic each?

As to the monthly/yearly multiply... I am really not sure about this... I hear people pay 18 months while others buy for 7,8 or even 10 years of revenue. What is more common? Is there an average for generic domains?

Thank you all in advance for your help...!

Buy 1 max 2 top names, develop them and create a new original brand.
I'm looking to do this too in the next 6/8 months.

 

[newvista]

Exactly, in this day and age and moment in time, if I had 300k to spend on domains, I'd be foaming at the mouth with anticipation.

foaming and dribbling !

 

[Johnn]

Did you just win the lottery or something? Normally people would not have xxx,xxx just sitting around and wait to do something.

 

[PRED]

Exactly, in this day and age and moment in time, if I had 300k to spend on domains, I'd be foaming at the mouth with anticipation.

I think thats called 'rabies' ,doggie :smilewinkgrin:

 

[emoshe]

Thank you all for the replies!

Hehe, no, didn't win the lottery (actually I do have a ticket here that I got for my birthday, now you remind me to check it...) Also this is not money that I am going to gamble with. However, I honestly believe that in today's economy I can do much better with buying domains than I can with getting a home for investment or putting it in the bank.

So unlike many domainers, I'm not interested in high profits in a short time, but actually interested in generating steady revenue for the long run. I know it's possible to buy expired domains and double your investment in 3 months or less as I did it myself a few times, but this time I am interested in the real thing. Premium domains that will have real value also in 10 years.

 

[ShaunP]

...The one figure question is how many people that you see buy traffic names and wait for years to get the ROI back?

Johnn ... almost everyone I know does. Some do some selective selling, but most are accumulating for either development, present and future cashflow or long-term investment.

 

[Sonny Banks]

Thank you all for the replies!

Hehe, no, didn't win the lottery (actually I do have a ticket here that I got for my birthday, now you remind me to check it...) Also this is not money that I am going to gamble with. However, I honestly believe that in today's economy I can do much better with buying domains than I can with getting a home for investment or putting it in the bank.

So unlike many domainers, I'm not interested in high profits in a short time, but actually interested in generating steady revenue for the long run. I know it's possible to buy expired domains and double your investment in 3 months or less as I did it myself a few times, but this time I am interested in the real thing. Premium domains that will have real value also in 10 years.

Buy a Dollars.com type of domain
Don't invest your money in 5000 crappy names.

 

[owntag]

Buy a Dollars.com type of domain

For such domain, don't buy from Rick Latona, buy via SEDO auction!

 

[Sonny Banks]

For such domain, don't buy from Rick Latona, buy via SEDO auction!

I love the domain in your sig

 

[Biggie]

Thanks for your insights.

My budget is more like $300k - $400k.

That's true, type in traffic is hard to prove, but still it is there. I bought 'chatfree.com' a while back, and it gets about 30-40 UV a day only from type in traffic (no referrers). I wish I had a way to make sure it is type-in traffc before I buy new domains..

As to development, maybe in the future, but the thought was this - putting the money in the bank will get me almost nothing these days, so hopefully with parking I can get about 15% ROI / year.

As to people paying up to 15 years for generics with income... how can they afford paying so much? I mean no one knows what will happen to PPC prices in a few years, sounds like taking a big risk to me.

you got too much money and posting the amount is only going to get you some spam


i've been on this forum 6 years and in that time i haven't spent six figures yet

but i've sold six figures in domains during that time.

it's still possible to get roi in a few months on a domain

and paying 15yrs revenue to buy a name is nothing, if you can sell it for much more or develop it into a phenom.

this is a great time to buy though