11 Beginner’s Mistakes In Domain Investing

Domain investing is a simple concept. You register or buy a name with perceived worth and hold onto it till the perfect buyer comes along. Or you may commercialize the domain and benefit from your hard work.


The fact is that there is a lot more depth to buying, selling, and monetizing domains. But it isn’t as intimidating as you might assume. Each domain name is unique, and only a few people can buy domain names that will sell for a considerable profit in the marketplace. 


Still, millions of individuals worldwide are attempting to become domain investors. Only to discover after a year or two that they have squandered a significant amount of money and will make no benefit from their efforts. 

In this article, we will go over common mistakes every domain investor should avoid. 


Let’s dive in!

Common Mistakes To Avoid In Domain Investing

Mistakes to avoid in domain investing

Below are the top 11 mistakes to avoid in domain investing

Viewing Domain Investment As A Fast Path To Wealth 

It is better to start with this: domain investing takes a lot of work to get money. You may have read articles or social media posts about how people got domain names for $200 and then sold them for $20,000 or more later. With those kinds of figures, one might believe that domain investing is simple.


However, those articles don’t state the overarching plan and dedication the owners put into their portfolios. This, in turn, led to those individual transactions. 

Most outstanding domain investors are the hardest workers you’ll ever meet. So, if you want some get-rich-quick scheme, domain investing is not your thing.

Domain Squatting 

Domain squatting is sometimes referred to as “cyber-squatting”. This is when a user authenticates a domain name that contains a branded/trademarked keyword. Also, the branded trademark may include a name or slogan from a business or person. 


Participants in this often attempt to prevent the firm or person from registering the domain. Or using it as a part of their portfolio to benefit by applying different investing tactics. 

To stop users from misusing this technique, ICANN has placed the Uniform Domain-Name Dispute-Resolution Policy (UDRP) in place. So, refrain from registering trademarked or branded keywords.

Shabby Research


Too many novice domain investors need to take the time to absorb information. In fact, they must conduct extensive research on investing in valuable domain names before leaping.


It may be possible to succeed without researching or taking advice from others. But your chances of doing so are better if you take the time to learn from their failures and achievements. Even better when you incorporate those lessons into your plan. Hence, check out the following resources before domain investing; 


There are thousands of discussions with experienced domain investors at DomainSherpa. Each of these comes with a unique strategy to learn from. Thus, we recommend you begin with the “Top 10” interviews and work your way up. If you listen to podcasts, listen to their regular podcast to ingest domain investment knowledge while doing other activities.


This is a fantastic website that teaches you the fundamentals of domain investing. Also, it explains the process of buying, valuing, and domain selling. Yes, there is a fee connected with it. But if you need industry connections to advise you, this is a must-have to begin your path.

Scammers And Fraudulent Transactions

It pays to be cautious when working with other buyers and vendors. When it comes to domain investing, there are several unethical strategies that people might do. Examples are misrepresenting a domain’s details, holding stolen domains, and transactional fraud. 


This is why it is critical to conduct studies before purchasing a domain. Learn about the domain owner and verify its history. When you’re ready to buy, use an escrow service or a domain broker to help keep the transaction secure.


Treating Domain Investing As A Hobby 

This is a common mistake you may easily fall for during domain investing. It’s OK to have a few preferred domain names that you’d be hard-pushed to give up. But, it might take a lot of work to earn a profit. This is especially true if you are a novice domain investor committed to your domains.

Pro Tip

Ask yourself: “If I sell this name for this price today, how many other equivalent quality domains will I acquire (either on expiration or elsewhere to replace it)?” It is an intelligent approach for a domain investor to follow.

Failing to Plan

Every great business owner starts with a written strategy backed by research, statistics, and data. How many domains must you buy and sell at what rates to make a profit? Is that formula a practical one? Have you discussed it with a seasoned, successful domain investor?


Instead of naive fantasies and ambitions, base your company plan on facts and accurate statistics. 


Pro Tip

Set your goals and evaluate your progress always. This will make the required tweaks and adjustments that lead to success.

Investing In Domains Where You Can’t Describe Prospective Use Cases


You ought to know how to justify the potential uses of a domain name before buying one for a firm. The business’s likelihood of paying a premium price for the domain is low. Most especially if you need help articulating the value it will provide to a company.


Consider going one step further and paying attention to the domain’s content.


  • Are the words arranged in a logical sequence for a user?

  • Is it better or worse to have the term plural?

  • Can a company genuinely use it as a domain?


Pro Tip

Spend some time reviewing the use case for the domain that interests you.

Accepting Candy From Strangers 

As you move forward, your company strategy will run across issues, roadblocks, and failures. You will want more knowledge and direction to change your business plan and flourish. Although, random suggestions from faceless individuals won’t lead you to success. Rather, seek knowledge domainers who are popular in the field.


Pro Tip

Refrain from collecting fragmented information from random individuals online. Do this to ensure the success of your organization is maintained. 

Being On A Fast Pace


Hearing about those who blew up their entire investment budget on subpar domain names makes one feel worse. Every domain investor has started off by making mistakes. And there are many out there who have bought some inferior names. 


Everyone makes mistakes at some point. So the idea is to proceed slowly enough to give yourself time to correct them. Hence, set a plan for how you will implement your domain investment strategy and determine its success.


Try out your plan, and make any necessary adjustments. Also, speed up only when you start to notice results. It is alright if your plan doesn’t work. Regroup, conduct further research, and develop a fresh idea. 


Pro Tip

Don’t just dive into a plan that you have yet to prove. Instead, make thoughtful judgments about what you are going to do.

 Second Guessing Your Sale Price Because It Sold Fast

Every domain investor has had a similar experience. They buy a domain name and determine its reasonable selling price. Then, they post it for sale. 

Once the domain sold rapidly, they wondered if they wasted money by selling it so low. And, sure, it is feasible. You could have been able to sell the domain for more than you bought it. However, if you had priced it higher, you would not have sold the domain.


Hence, we advise that you conduct your study. Also, price your domains accordingly so you will be satisfied with the results. There is no reason to worry if you can get a rate for the domain that permits you to buy other domains of equal quality. 


If you cannot renew the domain names you sell, reconsider your pricing. 


Pro Tip

Understanding the mechanics of a domain portfolio is critical to being sure of your price. Also, take emotion out of your domain name sales.

Spending Time With Newbies

Domaining is a lone activity. Making relationships, networking, and learning from our achievements and disappointments are still crucial. Just collaborate with domain owners who are at least as successful as you are.

Mentoring a novice is a fine endeavor. But you should spend more time with domainers who are more successful than you are. This is because they will help direct you upward.


Final Thoughts

Domain investing is a challenging job. However, it may be pretty beneficial in the end. There may not be a quick method to get wealthy. But by using your resources to develop and test a sound game plan, you will put yourself on the path to success.

You may execute your strategy by considering yourself a business and applying rationale to each domain acquisition. Don’t second-guess yourself. Instead, monitor your company KPIs to see whether you need changes. Also, do not let emotions influence your actions. 

Furthermore, a wealth of information and news is being exchanged on domain investing websites. Even if every article is irrelevant to your unique approach, being up to date on the trendy news will keep you on top of your game and help you learn from others. 

You may position yourself for the greatest possibility of success in domain investing when you avoid the common mistakes above. 

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