Domainer Tips

Lately Rick Latona has been giving you some great things on his blog to think about before making a significant purchase on a domain name.   Today I wanted to add something to the list that I spend a lot of time considering before buying domain names. 

Have you ever seen a domain name for sale that is accompanied by an incredibly long description or explanation of why you should purchase it?   Things like what it means in another language, what it is a misspelling of, or a full paragraph about how incredibly valuable it will be someday.  If its going to be so valuable, why are you selling it?!?

Before buying a domain, I always take the possible requirement of a explanation into account.  Generally if it requires explanation, I don’t buy it.  The two exceptions to this rule are when people provide related domain sales values and when details are provided for geo domains.  If you’re try to sell me a geo domain, let me know the population, tourism information, and any other information that might be useful.   I will of course verify that information prior to purchasing, but it gives me a snapshot and grabs my attention.  

If a domain is going to be truly valuable (non-geo), it should really sell itself just by typing the domain name.  If an explanation is needed, it probably isn’t worth nearly what you think it is.

With the current recession in the United States (despite what people say, I live here, and it is), domainers have started to place a lot of attention to their portfolios and many are trimming them down as much as possible prior to renewal to save some cash.   I know this because I am one of those domainers. 

My approach was to re-evaluate my portfolio about a month ago and figure out which domains I do not plan to renew, then go out and try to get whatever I can for them.  $7.00, $5.00, $3.00?   It is all better than just letting them expire and getting nothing out of them.   I’ve still got a few names left that I’d like to move, but I must say that I’m pretty happy with what remains of my portfolio and I’ve now got a little money to play around with in the aftermarket. 

So, what other factors should domainers consider when investing during a recession?  

1. Renewal Prices – Domain renewal rates appear to be going up about 7% a year, and this will likely continue for the immediate future.    Keep an eye on registrar rates and don’t be afraid to transfer your domains to a more affordable registrar when that domain comes up for renewal.   This does not mean go to 1and1 of course, but there are always domain coupons to consider and special offers that you take advantage advantage of with the main 7 registrars. 
2. Look for Deals – The domain message boards are filled with all sorts of great domains going for next to nothing.  Monitor this area and get some steals from struggling domainers. 
3. Develop Domains – As I trim my portfolio, I’ve been digging through my names to see which ones I could easily develop.  This is generally a smart method to protect your investment for a domainer anyway, but with parking income down lately, it has almost become essential.  I use a few techniques including keyword sniping (form of niche blogging) and BANS to easily monetize these sites and produce a steady income.   My goal is to find methods that require a minimal amount of upkeep, but will generate comparable or additional income vs parking the domains.

What methods are you using right to continue to grow your domain portfolio?

For all of you active domainers out there that try to keep an eye on the industry, you’ve probably been spammed with blog posts and even e-mails recently regarding the Snowe bill, which is a bill that could have very negative implications on domainers world-wide.   Basically this bill, if passed, would give businesses with trademarks more access to domains than they currently have, costing many domainers thousands if not millions of dollars in losses due to being forced to turn over their domains.

The Snowe bill is obviously the biggest threat to our industry, but there are several things that a domainer needs to be conscious of in general when determining whether to invest into a particular domain name.   Over the past decade, there has been a lot of presidence established that helps guide internet law and provides you with general guidelines to follow.  

If you are interested in doing what you can to protect your investment, you first need to understand how things work from a legal perspective.  Domain Bits has taken the time to collect a bunch of things you need to know when it comes to Domain Law.   Here are the subjects covered:

1. The Contract Rules
2. Your Domain Can Be Shut Down
3. No Such Thing As Domain Ownership
4. US Law Overreaches International Boundaries
5. Generics Can Be Trademarks
6. Registrars Will Park Your Domains
7. Record Keeping
8. Private Whois
9. Accurate Whois
10. Front Running
11. Hijacking
12. Most Registrars Aren’t Helpful
13. Not Much Legal Protection

Click over to get full explanations of each option and make sure you are doing whatever you can to protect your investments!