Acro.net – Technology Rants & Raves by Acroplex®

When it comes down to investing in stocks, one thing you learn fast is never to bid all your money on one stock.

Unlike horse racing and gambling, investing in the stock market is a matter of researching both fundamentals and trends.

The same rules apply to the domain market.

When one invests in new TLDs based on emotion or one’s like or dislike towards the trends of the market, eventually things can turn upside down.

Putting all your eggs in one basket – as the old saying goes – is not the best way to learn, but many domainers have learned that lesson the hard way.

While it’s tempting to register every keyword under the sun in a new TLD, one should invest in single digit percentages in relation to their total portfolio. For example, if you own 100 domains don’t go getting more than 10 newTLD ones or you might end up losing the proverbial skin off your back.

Similarly, when the market doesn’t seem to move the way you hoped, don’t go around blaming anyone other than yourself for that type of investment mistake!

A recent incident that quietly unfolded on the popular domain forum, DNForum.com involved the following protagonists:

• A seller eager to let go of a premium domain for a low price
• A buyer #1 who recognizes good deals
• A buyer #2 who silently bought the domain

I cannot reveal all the names, but the buyer #1 is me. The seller listed a premium, aged dot com for sale at a surprisingly low price. For a pre-2000 domain, it was a non-brainer.

Following the seller’s instructions, I posted ‘Sold’ in the thread and waited for a private message instructing about payment.

The next day I received a message from the seller, that he had sold the domain to a buyer who messaged him privately before I did. He also mentioned the name of the buyer.

I’m very particular about the rules of the game and I don’t break them. Since I was the first one to post ‘Sold’ as instructed, I had full intention to publicly denounce the seller’s lack of following his own rules.

However, I decided to contact the new owner first. He responded that the domain was indeed in his possession, as he had paid for it already.

What came next was clearly a surprise for me.

The buyer told me that if I wanted the domain for the same price plus the PayPal fees, I could have it. He graciously offered this clearly undervalued domain name without asking questions, simply because he felt that I wanted it more.

I jumped on the opportunity and agreed to buy it from him; in the process I paid an extra 25% for the purchase to show my gratitude.

The buyer’s gesture was extremely noble and characteristic of a gentleman. I appreciate people who display a lack of selfishness and I often strive to act the same way. In a world of faceless electronic communication, such acts are the exceptions to the rule.

Thank you, Vincent; you’re one true Gentleman.

I’ve been using DomainTools – the paid version – since mid-2006.

During those past five years, I discovered my “addiction” to this indispensable WHOIS tool and here are a few reasons why:

• It’s fast. Even if other WHOIS services claim to be faster, DomainTools delivers more information on that single page.
• It’s accurate. Even the most obscure domain names seem to be scanned for changes, daily.
• Historical WHOIS allows me to do in-depth ownership checks before registering, buying or bidding on domains. It has also given me the ability to locate the owners of stolen domains and to assist with their return.

DomainTools is by far the #1 query tool for domainers – Silver memberships cost only $15 /month. Well worth it!

As announced at Mike Berkens’s blog, the sales price of Meet.me wasn’t a surprise; what’s surprising is that a so-called “domain hack” wasn’t picked up from the Montenegrin registry at a higher price.

Domain hacks are combinations of keyword+TLD to form a word or even a phrase.

Some are obvious: Love.me, Fuck.it

Others require more creativity: Blo.gs, Doma.in, Poe.ms

Some others have a meaning in another language: Agapa.me (love me in Greek.)

Lastly, there are some that are outright confusing: Bit.ly

The $450k sale of Meet.me is revenge day for those that support the usefulness and value of domain hacks.

For a great list of domain hacks, visit DomainHacks.com – an aftermarket platform operated by French domain entrepreneur, Francois Carrillo.

When a house goes on the market, its ability to be sold quickly depends on two factors: quality and price.

In a similar fashion, depending on how good a domain name is, the factoring of its price determines how fast it piques the interest of buyers.

When a seller lists a Buy It Now (BIN) price, many times there is a cushion of negotiation incorporated into the asking price. It’s the same thing when a car salesman places the initial offer on the table, praising how good of a deal it is.

Most often, the asking price for a domain name can be up to 25% above the seller’s bare minimum; the price he’d sell without cutting his losses.

There are times, however, that failing to buy at the BIN one can lose a great deal.

Generally speaking, when domains are offered publicly, it’s best to quickly contact the seller in private, showing you’re willing to buy. If you absolutely must have the domain, you either pay the asking price or negotiate a discount no more than 10% lower.

This way, you can achieve many great domain acquisitions at a price that will allow your return on investment to be very rewarding.