Over the last few years I’ve watched many domain investors throw money at some pretty crazy ideas and invest in nonsensical domains. Some of these investors have already completely burnt their cash and have exited the industry.
I’ve also watched the quite diligent investors that have methodically planned how they are going to get a return on their investment….and they’re making money hand over fist!
The secret to any business really isn’t a secret at all but it does require a sustained level of tenacity and diligence. Everything in business starts with a plan and the end point of the plan should ultimately be how the business is going to be sustainable and turn a profit.
When I look at investing in domains it’s exactly the same thing. You need a plan. If you don’t have a plan, then you are very likely about to burn through some of your kids’ inheritance.
Let’s get down to the basics. If you have a reasonable sized domain portfolio, I can almost guarantee that 20% of the domains should be monetised for their traffic. This will provide an immediate cashflow that will at the very least help out with renewals or you may find yourself in the enviable situation of turning over an immediate profit.