Hey guys-- not sure if this is a newbie question, but whatever.
I was wondering, what's better to have-- several names worth, say, 100k, or one 100k name? As I understand it, the *really* high value names generally skyrocket in terms of daily income etc., while the lower ones may not be so great. What do you think? I'm really curious about this.
Diversification reduces risk but one shouldn't invest in a stock or a domain merely for the sake of diversification. Just as a low price or low p/e stock doesn't necessarily make a good investment, a domain which costs nothing more than a registration fee may be a horrible investment particularly if repeated dozens of times over. Before registering any name or bidding for it in an auction, do some quality checks for that phrase. It makes no sense to pay for a name you can't make money off of either via PPC or a later sale. Remember one other thing - domains are illiquid investments. If you turn down a decent offer or put a ridiculous target price on a domain, you may wait a long long time and never sell it.
The nice thing about domains is that the potential return can be very attractive relative to other investments. I have received offers on domains which cost me $10-$60 many many times my cost but I also have many domains which are waiting for a buyer who may never show up. Sometimes you can find some good expiring domains at Snapnames and I suppose Namejet is now worth a try as well. But don't get into bidding wars. A few times I have spotted what I thought was a good name, found myself in an auction with a dozen or more other bidders and watched the "winner" pay as much as $3500 for the domain. Later I see the name is merely parked and I ask, "Can they really be generating enough pay per click income to justify what they paid for that name?" Or maybe they are thinking like this guy...
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD width="55%">
Music.mobi closed at
$616,000,
Games.mobi at
$401,500,
Sports.mobi at
$101,000 and
Movies.mobi at
$82,000. The same bidder,
Alvaro Albarracin, apparently took all four of those domains, along with
Videos.mobi and
Photos.mobi at
$51,000
</TD></TR><TR><TD width="100%" colSpan=2>each....
Albarracin said "I am not planning on developing these names, I am planning on selling these sometime in the near future." So the names were apparently purchased as a pure speculative play....
</TD></TR></TBODY></TABLE>
http://www.dnjournal.com/lowdown.htm
