Morning Folks!!
When I started investing in domains that is exactly what I was doing. Investing! Taking extra funds and instead of buying stocks or saving it I decided to risk it on an investment. But that is not the path that most folks follow today and had I followed that path, I would have failed. Nobody would have given me a dime for what I had. So when you are forced to make a living and you have the steam roller at your heals, you don't have the luxury of time to think and plan and execute.
Now the majority of folks will buy that gTLD investment today and trying to flip it tomorrow. Some will have some success. But many more need to figure out how to bridge those 20 years Frank talks about before they sink with renewal fees. That is why I often talk about building an engine to support those names.
Let's do some math. Let's say you buy 1000 gtld's at $25.00/year. So that is $25,000/year x 20 years = $500k. And you may or may not have something with value.
Or
You could buy a $500k domain name right now and finance it for 20 years and never look back. Probably could pay it off in 10 years because a $500k domain comes with traffic and earnings and that reduces the note considerably. And if you are smart about what you are doing, it won't cost you a DIME out of your pocket because your new business will generate those payments.
So I just described 2 roads. One is unknown and the other could be a no-brainer. You could do it at different levels. Finance a $100k domain. But first and foremost you must know which one to get as there are $500k domains with limited commercial value too.
And so.....I Could Have Just as easily Failed in 1996 by Doing what Some will do in 2013. There are many paths to climb this mountain. Just think before you climb because there are paths with not only less headwinds, but actual tailwinds.
Rick Schwartz
UFO
Unfortunately cheap domain names come with ‘in built’ finance. But even $25k is a steep amount of money for no cash flow. If you had enough cashflows you could borrow to by that $500k domain name….
I.e. Cashflows are king. Anyone investing in anything should always realise that’s where the action is, in cashflows; maintaining them, and enhancing them. You can get finance on cashflows and expand. Liquidity is king, finance facilitates that.
The great thing about the world of the internet is if you’ve got a lot of brain power but no much cash you can still make millions. All as you need is a hand regged domain, some hosting bandwidth and a internet connection. Thats about it, and you can work your way up to being worth millions and millions.
steve
Rick Rick Rick, Haven’t you figured out people by now.
All I have to do is look at these assholes faces and I see the greed, stupidity and I just go home. I can recall my ex-friends faces and I am sort of disgusted. Yes they were stupid, but more greedy. They end up starting a really sh%t ass government contractor firm and will probably lose all their money.
Who cares. They could have bought a 90k domain and made a company out it far easier. But they are stupid and greedy. A domain for 90k? Are you kidding. Yet they go rent office space that probably runs 50k a year…….. f um.
They tried to trick my out my own company so double f um.
JBS
You definitely hit the nail on the head with your path analogy.
A quality commercial dot com is an investment and after nearly 20 years, there is a paved and brightly lit path towards success and ROI.
Investing in the new gTLDs is like starting a venture without a map. A lucky few might find their way to the top, but most will likely starve on the trail.
Mike
“The great thing about the world of the internet is if you’ve got a lot of brain power but no much cash you can still make millions. All as you need is a hand regged domain, some hosting bandwidth and a internet connection. Thats about it, and you can work your way up to being worth millions and millions.”
Awesome comment, UFO… Thank you… But, do you have a kind of blueprint to implement that SECRET?
Best regards,
Mike