Buy Top Value or ... ?

[DomainMart]

Art dealers frequently advise investors to buy top works of established artists (masterpieces).

Do you agree with the following proposition?

Proposition: Domain name investors should acquire top domain names or buy the most expensive domain name they can afford.

 

[hugegrowth]

I'd say yes, but use some current reported prices as a guideline,
don't go crazy and pay way too much just because that's what
someone is asking.

Quality never goes out of style and is always in demand. Top
generic names that were bought in 2001 and 2002 now go for
5 or 10 times more. So if the short history of domains is a guide,
top .com names are best for investment. My personal belief is that the
domain market is still in it's infancy.

 

[financialtraffic]

I think a mix between mid-quality and top-quality is best.

I believe that many in this industry continue to waste money either buying or holding domains with no potential, in other words garbage domains. It takes a long time and a lot of experience to begin to see which domains have value and which ones don't. I'm not saying I'm perfect at identifying value myself, I learn more every day.

From what I've seen, some seem to want to overpay for garbage domains, while refusing to spend extra money to invest in domains with real underlying value. What I mean by this is the idea that a $500 domain is worth it just because it seems like a reasonable price, is false. Price means nothing if the domain has no potential or real value. You are throwing money away at any price unless the domain has potential. The problem with finding potential is that many focus 100% on PPC earnings these days which is only one small indicator of potential!

 

[DomainMart]

Thanks guys!

The problem with finding potential is that many focus 100% on PPC earnings these days which is only one small indicator of potential!

.
What are some of the other significant indicators?

 

[financialtraffic]

The most significant indicator is how easily you can carve out a niche amongst what is an already cluttered and overpopulated Internet.

For example, does the domain lend itself to something that you can create that is both unique and usefull? If so, you have found a big underlying value that can generate a lot more revenue and return than simple ppc parking.

 

[carlton]

The question is a very good one. It really depends on several factors. Generally, I think the better quality name you can acquire ... the higher the eventual profit and the higher the ceiling of opportunity.

It takes more ingenuity, time and marketing investment to push a lower quality name to a comparable level of success. It can be done. But, it's like being in a race in which you must choose a vehicle to reach your destination: a Ferrari, an AMC Pacer, or a tricycle.

 

[JMJ]

The way I see it is I could buy a $3,000 name which everyone likes and wishes they had but they will only pay $3,000 for unless I get real lucky and it only makes $100 a month on PPC. Or I can buy $3000 worth of names and average $3,000 a month on sales since I have more options and inquiries to work with and they aswell will probably make $100 a month PPC.

It all boils down to what you want to do. Do you want to invest your money in a very small percentage of the limitless possibilites or do you invest it in as many of those possibilities as you can? To a selective degree that is.