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Lesson: Dont buy domains while impaired

So this story “breaks”:
Two Seattle residents have found their own way to capitalize on the burgeoning marijuana industry — and it doesn’t involve growing or even selling pot. The friends, who call themselves “domainers,” buy the domain names for as low as $8.99 and are aiming to sell each for a minimum of $10,000.

http://www.usatoday.com/story/news/nation-now/2014/01/14/marijuana-domain-names-seattle/4475049/

Basically two “businessmen” bought 200+ domains related to marijuana and plan to sell some of them for $1 Million dollars, get rich and buy a mansion in Jamaica where snoop Dogg will do live shows nightly.

Problem is, they just paid $1800 for garbage domains. Which surely would have been enough to replace the stash they smoked when coming up with this “amazing idea that only they were smart enough to think of”.

Bigger problem is that value of a domain is one of the biggest misconceptions on the internet.

With websites as large as godaddy.com offering “automatic domain appraisals” that tell you that putahatonmycat.com is worth $100. The line of people who need that domain to launch their cat headwear business must be around the corner. A bidding war will surely breakout.

Keep in mind go daddy’s silly appraisal tool is one of the most conservative, other sites think people would pay 4 figures to corner the market on cats wearing hats.

If you don’t have a common phrase, a name or term of industry, a short domain that is 5 or less letters that work together well (EX: togoo.com would be good, qxtrv.com would be junk) then you have nothing but wasted money.

Shizzleweed.com, RastaSpliff.com are not the next $20,000 investment that two smart guys made, they are the $22 they will never get back.  (That’s 8 bags of Doritos they will never get to eat.)

It took me 12 seconds to find “denverpotreviews.com”,  a domain with actual potential, marketability and perhaps actually some demand.

Visit Godaddy.com auctions to see the other 50,000 domains that people that would be amazing opportunities that are now expiring and in closeout auction. https://auctions.godaddy.com

The lesson here, don’t buy domains high, you may wake up with 200 junk domains and an empty bank account.

Domain buying is a business that 99% of people do wrong, ask youself these things for starters. These are basic common sense and will eliminate 90% of garbage that people think is of value.

  • Did you buy a .net? .info? .us?
  • Did you buy something with for, four or 4 in it?
  • Do you have a hyphen?
  • Do you have a domain that sounds just as good with a plural? or singular?
  • Is it cute?
  • Is there an industry behind the words in your domain? (EX: plansforhomes.com)
  • Is your domain’s target buyer people with no money? (EX: denvernuggetschat.com) chat is free, not an industry with margins.
  • If someone said you domain name out loud at a party, would you have to ask them the spelling to get it right? (EX: mycoolcarz,com) “z” really?

 

 

About author

Todd Kron

of Sellaholics is a veteran of Analytics, PPC, Display, video, UX, conversion optimization, affiliate programs, web design and web programming since 2002. My background includes affiliate sales to 6 figures, director of a web design agency, and currently the digital manager for a leading energy company located in Huntersville, NC. From search to sale 1000 different ways is my background. Sellaholics is a Google Partner Agency.

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