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.

Whether you began back in 1998 or now in 2008, every domainer had to start somewhere.   With good strategy and careful investment, even a new domainer today can achieve a lot of success and make a good living domaining.   So, how did everyone get started as a domainer?   I always enjoy taking a look back, so I’ll get the ball rolling.

Although I wasn’t to long ago compared to many domainers, I suppose I technically started domaining back in early 2006, though it wasn’t necessarily intentional.  I had just purchased my first few domain names, all with the plan of eventually developing them.   After grabbing my first and last name domain, I figured out some areas I could work with, did a lot of research, and grabbed about 10 domains.   Over the course of the next year, I established maybe 3 of these sites with some success.  The remaining 7 domains were coming up for renewal and I wasn’t sure if I had time to develop them.   Rather than just let them go or renew them, I decided to see if anyone else wanted them.   With a quick search, I discovered Namepros and posted my domains.   After a couple days, I had collected several hundred dollars on my investment and realized I may have been taking the wrong approach to establishing myself online! 

To test my skills, I used some of that money and went out and purchased another 20 keyword-rich domain names to work with.  After about a week, I had made back more than I’d spent and still have about 11 domains left!   Again, nothing major, but it showed me that I had the research skills necessary to find success in the world of internet real estate.   Over the last year my portfolio has continued to grow as I started delving into the world of backordering domains and it has really been a fun ride.   As I look towards the future, my hope is to continue to mix domaining with developing and hopefully create a steady and profitable web prescence. 

So, that is my story in a nutshell.  How and when did you get started domaining?  Who were your mentors?

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?