How to make a good domain name investment? 5 Truths About Domain Name Trading

As someone who has been in the domain trading business for a while, I know the fun of buying and selling domain names. It's hard to overstate the excitement you feel when you spend hours browsing through domain listings, find one or two potential domains, and then successfully bid on them or just pocket them.

However, this article is not intended to boast about all the advantages of domain trading, but rather to reveal some truths that are often overlooked. Some people need to wake up to the mental preparation and realistic expectations that should come with entering this or any industry.

1. Reject false advertising

I've seen too many eBooks claiming that you can "get rich" trading domain names; that everyone can do it; that you can make a huge return on $10 just by buying their eBook or taking their domain name course. Such promos sound too good to be true and are actually false.

Since we started making videos about domain name domains on YouTube, we have received a lot of feedback from viewers praising us for the real information we provide. In the spirit of realism, I'm going to share what you can actually expect in this industry.

2. Be patient in your search

To find domains worth buying, you will spend a lot of time scanning through lists. Most of these lists won't be pretty and are filled with tons of spammy domains that will leave you scratching your head. You'll see all sorts of domains, from those made up of random characters to names that are completely unknown. The work is not glamorous, but it can be very rewarding.

If someone asks you what you're doing and you answer "browsing for expired domains", you probably won't get as much praise as "going to Hawaii on business". Domain name registration is a tough job that most people don't want to do.

3. Consistency

Consistency is key, especially when scanning a list of domain names. It requires consistency and persistence. If you don't scan and filter domains on a daily basis, you never know what great domains you may have missed. One day of laziness could make someone else rich.

I personally am constantly striving to do the same. To be successful, you have to create a system, set reminders and alarms, get organized and stick to it. No excuses.

4. Face rejection

People usually don't like to be marketed to, especially when they aren't actively looking to buy. When you start outbound marketing to find potential buyers, you will receive a lot of rejection and negative responses. This is part of the game. Many of the top guys are constantly dealing with rejection and domain trading is no different. It may take 100 rejections to get one success, which is why persistence is so important.

5. Risk vs. Reward

If you're afraid of losing money, don't get into this business. You need to invest some of your hard-earned money to see if you can make a profit from domain trading. Every purchase is a risk and the goal is to make sure the rewards far outweigh the risk.

One of the problems with starting a business online is that most people forget how much money it takes to start a business in the real world. The advantage of the Internet is that you may not need hundreds of thousands of dollars in loans to start a business, but it's unrealistic to expect to be successful with just a few dollars. This mentality won't bring any benefits and it's best to quit while you're ahead.