Regardless of who you are, no one likes to blow money for no good reason. When you start buying domains from others, it is extremely unadvisable to listen to the seller’s opinion as to a domains value. Remember the old adage “Letting the fox watch the chicken coup?” If you post an ad looking for domain names and a seller approaches you with a response of “You can flip these for so much and make a killing!” or ”I am looking for a quick sale so my loss is going to be your gain!”, then you may want to think about the domain name and ask yourself if the name is really that good or if someone is trying to make a quick buck off your eagerness or ignorance.
Here is an example. At one time I posted an ad on one of the forums looking for generic single and two-word .com and .net combinations; things that make sense either together in a two-word phrase or individually by themselves. One of the replies to the ad I received is below:
These names are actual keywords of products currently being sold, used online. I can assure you, you will likely not find the quality of names you see here as in a package. My asking price is firm. look at the quality of the names and these are your domains to lose.”
The names that he sent me were completely sub-par and utterly worthless. They were registered only six months before and the word combinations made no sense. Although I don’t want to post the exact names here in order to protect this person’s identity, the names would be of the same caliber as something like computerasphalt.com or leatherwalletpants.com.
He was correct though, everything he sent me was of products that were being used, but for the most part those products had nothing to do with each other. Additionally, there was almost a zero percent possibility that anyone would ever type one of those names into a web-browser. And the asking price for those great names? $10.5K!
Nonetheless, I did take great care in looking over the names to see if they were worth remotely anything. They were not so I moved on. I also sent him back a polite, “Thank you for your time” message. There is no reason to be rude even though I knew he was trying to sucker me. One day, he may have something I want or vice-versa, why burn bridges?
The truth is, 95% of the stuff that people are going to send you is going to be junk. Maybe four percent of those names are going to be good names at a reasonable or high cost. Perhaps one percent or less are going to be good names at a bargain price. Good names at a great deal are the names you need to target.
How to Gauge a Good Name
There are a couple things I use to gauge domain names. First, I will check if the other extensions of the domain name are taken.
Practical example: Go to Epik.com and type in wolfpack.com. For the keyword “wolfpack,” all extensions are taken except for a few obscure extensions. This means that the normal gTLD (Global TLD’s) are all taken by other individuals. To me, this says that people think that the info/org/com/biz all have value (else they would not have registered them).
Finally, I go to both Google.com and Yahoo.com and just type in a few phrases. Go to Yahoo.com and type in “wolfpack” and see what pops up.
You need to spend a little bit of time every single day going to the domain boards like NamePros.com and other sales avenues (Epik.com marketplace) and search for domains. Don’t get discouraged! If it was so easy, then everyone in the domain game would be a millionaire. Also keep in mind that a great deal may not mean $30, it might mean paying $3,000 for a name. If you play small, you win small. If you play big, you win big. That is the nature of all investments.
Finally, you need to know what you are going to do with a domain name before you buy it. You can always buy and hold and try to resell later for a higher value. You can buy and park a domain in the hope that there is enough traffic to generate some revenue. Also, you can buy a domain to develop a site around it.
Here’s another example of how to:
As I write this paragraph, I have just been offered a two-word .net for less than $500.00. A lot of the time I would scoop a name like this up quickly, but I am a bit hesitant. I checked epik.com and all of the other extensions were taken, so that is a good sign, but I don’t see any products associated with this name, so I don’t know what people would be looking for if they went to this domain. I am sure this site could be heavily branded with a lot of marketing dollars, but I really don’t want to take the time or money to do that. Of course, I could pick this up, hold it, and sell it to the next guy, but if he thinks the same way I do then I would have a hard time getting rid of it. I think I am going to pass on this name for now. I am too afraid it is going to become a liability, Internet swampland, and that I will not be able to do anything with it.
We need to be clear here: I cannot immediately see a vision for this name. Since I, myself, cannot find a practical use for it I am going to pass, however, you may already know of a great site to develop under a name of similar stature. The name itself is not a bad one, I’m saying it’s not the right type of name for me. You, and you alone, need to be the judge of things when it comes to buying. The only thing I know for sure about this name is that it can be branded, but it will cost money and time to do so.
Pro Tip: URL Shorteners can be an exceptional opportunity for windfall returns. Consider these recent examples from 2019:
HelloExtend to Extend.com (Sept)
Hallow.app to Hallow.com 70K (Sept)
JoinChief buys Chief.com (June)
AllmyLinks to Links.com €700K (June)
HippoInsurance to Hippo.com (Aug)
ThePostman buys Postman.com $85K
5i5j.com to ij.com for $550,000. (Nov)
GetRoom.com buys Room.com for $1.5M (structured as 5-year finance)
ProFootballfocus to pff.com 270k (June
IFSWorld.com to IFS.com. (Aug)
OnCarrot.com Carrot.com $600K (Apr)
HelloEko.com to Eko.com for $1.5M.