Beginning Domain Tip: Flip Dot Coms, Build Out Other TLDS

Dec 23 2010

If someone were to ask me to explain how to make money with domains (and nobody is) I would tell them this.  ONLY try and flip dot coms and try and buy good keyword  in the other tlds and build them out.  As simple as it sounds it only took me 10 years to actually practice what I preach.

The reasoning behind my statement is simple.  If a person wants to build a business on the Internet they want to build it on a dot com. It’s not to say that aren’t some good companies built on other tlds but if they had the ability to get the dot com I guarantee they would rather have built it there.  With want comes value.  Due to this want of dot coms,  the prices continue to climb and will increase for the foreseeable future as more and more names become permanent domains of corporations and are taken off the available list.  This gradual rise in prices provides a nice arena to flip domains.  Yes it’s going to cost more money but the risk in dot coms is much less than the rest of the tlds.   People settle for the other tlds.

One of the biggest mistakes in new domain investors is thinking that buying a bunch of alternative tlds is better than investing in one dot com.  Before you know it you have a group of names that have little value.  What happens next is you find a strong name and complain you don’t have enough money.  If you added the total amount of money you spent on the poor names you realize you could have purchased the good name.  All you needed was patience.   But don’t think I’m bashing the other TLDs, there is also great value in them as well.

Let me start by saying, there is certainly opportunity to flip other alt tld domains.  There is just more risk involved and the sales aren’t as frequent.  Another BIG negative is 99% of your sales go to other domainer investors not end users.  But the big opportunity is development.  For the most part, Google doesn’t care if it’s dot net, info, org, or us.   (See Morgan or DomainQuestions which country codes are more difficult to rank).  Because Google doesn’t care, it gives you the opportunity to buy great keyword domains with lesser cost tlds and use them to rank higher in your searches.   You can buy a keyword domain like much much cheaper than and still compete head to head on a level playing field.  So if the domain ranks as well why does it sell for less?  I can answer that easily.  Name your favorite baseball team.   I’m pretty sure you named a major league team.  There are hundreds of other professional baseball teams out there.  Triple A, AA, and A ball, even foreign teams.  All are great to attend and cost much less but you still named the ones that are the most popular.  You could say they are popular because they have the best talent in the world but they have the best talent in the world because they came first.  Dot com came first and therefore rules the roost.

So go out there and make some money but don’t fool yourself on how you’re going to do it.  For every guy that tells you he bought a $60 domain and sold it for $2000 (did that last week but it was a dot com) are the thousands of other stories of buying a hundred $60 domains and not selling a one (I have over 100 domains with cobwebs on them).

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Outsmarting the Dumb, Outworking the Smart

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  1. Leonard Britt

    Yes, I am generally reluctant to drop a .COM though I have dropped some but lately I have been dropping brandable .Nets which theoretically had been used to incent a potential buyer to buy the .COM rather than opt for an open .Net. Looking at past sales, I noticed I had only sold one such .Net in the past and have sold some .COMs when the .Net was available so perhaps dropping “protective” .Net regs where I hold the .COM can be an effective means of saving on renewals. Obviously as one gains more experience in domaining, one develops a more critical eye towards domains and comes to the realization that certain domains aren’t as great as they appeared when one was a domaining newbie. As you mentioned, many of my alt TLD sales have gone to domain investors or developers rather than end users.

  2. Bob

    The world *rarely* marches to your front door for an undeveloped net/org. Those are better suited for development. But recently .net has been gaining some traction with some great and consistent sales.

    If you’re a SEO expert or a content/link developer, there is a TON of money to be made picking up high search/high cpc dropping net/org’s.


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