3 Common Mistakes Beginning Domainers Make
My experience as a lawyer and educator in the field of domaining (http://www.domainsintodollars.com) has shown me that there are three common mistakes beginning domainers make that sabotage their success in this business:
1. They don’t think about the source of domain name traffic;
2. They don’t take advantage of tasting and testing; and
3. They don’t think through the appreciation profit model.
Let’s explore these mistakes and hopefully prevent you from making them.
When you strip it down to the basics, the domaining business is all about traffic. Pros focus on where the traffic comes from. Beginners don’t. What does this mean?
Many beginners think domaining is all about picking up expired domain names and capitalizing on the traffic that is generated from the pages that are still indexed in the search engines or from links in other sites.
A domainer’s business model can involve expired domain names but relying solely on that model severely impacts on your overall success.
Why? Because expired domain name traffic is totally dependent on the search engine listings (or from links in other sites). If the pages (or links) are purged, the traffic will die. Thus, the expired domain name is a depreciating asset.
The pros, on the other hand, focus on “direct navigation” or “type in” traffic. They are looking for visitors to arrive at their site or parked page simply by the domain name being named into the browser window by the web surfer. The pros love this traffic. Why? Because it is not dependent on the search engines (or existing links) and it is highly targeted and responsive. The visitor really is looking for what they typed into the browser bar and are more likely to buy or click, which generates profit to the pro. I teach my students how to locate generic type in domain names using cost free internet based tools.
The next mistake beginning domainers make is that they don’t take advantage of domain tasting and testing.
Domain tasting (also known as domain kiting) is your ability to register a domain name and test it for a five day grace period. You have total control over that domain name during those five days. You can use it to drive traffic and you can test that traffic.
If you like the domain name and the traffic it generates, you keep it. If you don’t like the domain name or if the domain name does not perform up to your needs or expectations, you surrender it and receive a credit back for the full registration fee.
The pros use tasting. It is legal. The regulatory body (ICANN) specifically allows for tasting.
However, the consumer based registrars don’t make tasting easily available to the public. They do not publicize it nor do they make it easy to do. In effect, they are penalizing the little guy.
Until recently, only if you had a special relationship with a registrar could you take advantage of the tasting rule.
No more. Domain tasting is available to you whether you register 1 name or 100 names. The key is that you need to deal with a registrar that makes it easy for you taste. I teach my students how and where.
The third mistake beginning domainers make is that they don’t think about all aspects of the domaining business profit model.
You’ll hear beginning domainers talking about registering a typo-based or misspelled word domain name with the hopes of generating traffic and profit from those visitors who hit a wrong key on their keyboard.
This thinking is shortsighted and dangerous. Why?
One of the most attractive profit models available to domainers is the appreciation of a domain name. There is no appreciation attached to a typo based or misspelled domain name.
Second, the quality of the visitor to a typo-based domain name is much lower than the quality of the visitor who arrives at a domain name that is not typo-based. Think about how you feel when you realize you’ve typed the wrong term or hit the wrong key and ended up at some site you didn’t intend to arrive at. Were you happy? Were you likely to click on one of the ads? I’m not.
Third, typo-based domain names run the risk of trademark infringement. Domain names that contain a trademark term or word can lead to big-time lawsuits, statutory damages, and, at the very least, lawyers fees. On top of that most parking services won’t let you park a domain name containing a trademark word or term. So you are subject to big time liability yet you have no possibility of generating a return on investment or time. Not a smart approach.
So that’s it. The three common mistakes beginning domainers make: They don’t think about the source of domain name traffic; they don’t take advantage of tasting and testing; and
they don’t think through the appreciation profit model.
The domaining business is still in its infancy and there are tremendous opportunities available to all, no matter what your level of experience. The key is to approach domaining in a smart way and not make mistakes that lead to detours off your road to success.
Too many people don’t talk about the dangers of trademark infringement. I’m glad that you brought this up in your first post.
The method of finding domain names that you teach in Domains in to Dollars is so much safer than going after trademark terms or looking for typo traffic. Watching the your course was a real “eye opening” moment for me. I have purchased several domains that are already giving me a pretty good ROI.
Great post Phil. Following those instructions will help you build a portfolio that pays for itself, produces revenue, and has great appreciation potential.
It seems as slow as molasses when you are just starting out, but revenue you derive from type-ins is some of the most solid, long-term cash-flow you can generate. Get it up to $100/day and it’ll probably last (and grow) your whole life.
Also, great comments about the typos. These domains are good for one thing only, and that’s traffic. Typo domains almost never appreciate because they aren’t brandable. And the only typos even worth considering are typos of generic terms like Liptsick.com.
You need to be VERY careful of domains and typos on dropped and expired lists since so many are either existing businesses, or are trademarked. Much better (and safer) to use the techniques you outlined in the course.
Jonathan
Phil,
I love the new blog! I recently sold 2 domains on Sedo of $250 each and thought this was awesome since these were my largest sales since I have been trying my hand at domaining.
I also noticed you have a link for Niche Video Site Builder on the blog. I was wondering what you thought about the income potential of the new video sites for web development?
Thanks for the informative blog Phil, looks like you are off to a good start. I found the video very interesting… and look forward to many more.
Hi Phil,
Thanks for putting together an excellent blog. I didn’t realize you were at TRAFFIC in Miami. I was there too. I thought it was great. What a tremendous show-I feel every domainer should attend at least one show and feel the electricity in the air.
When I got back, I had an email in my box from the fasterwebmaster advertising your product. I bought it and was EXTREMELY pleased. I thought you did a great job of condensing a lot of the stuff I learned at the show with your videos. You have a great product-thank you.
I also talked to Mickey about his domain name-pressreleases.com out by the pool when we had snacks. Interesting guy.
I’m looking forward to this blog.
Hey Phil,
Great stuff with info for a newbie like me that I was not aware of. Looking forward to reading more post and I hope others get a chance to read this. Keep it up.
Andre Arnett
I’m not sure of this, but if Niche Video Site Builder picks up YouTube and Google videos it might be against Google TOS.
Does anyone know?
Congrats on the new blog Phil!
I’ve been collecting domain names for awhile but it wasn’t until I took your “Domains Into Dollars” course that I’m able to take a more practical and focused approach to domaining. This post, “3 Common Mistakes” is definitely helpful for me. Looking forward to more posts,
nDee
P.S. I appreciated the video with Mickie
Hi Phil,
Great Post. Clear and Sensible
I am about half way through your course…so now I must finish it.
Cool idea about the ten comments before you do the next post!
Great article, Phil! Which registrars with reasonable policies for domain tasting do you recommend?
Hi,Phil !
First I have to say that I like your style how you teach domaining. I´m a member of Domain into Dollars and to me it`s a very honest course, telling what to do and what someone should not do. So I´m from europe but would be great if I could meet you, maybe at a seminar in the future.
Hi Phil,
I’ve also been picking up domain names along the way in the hope of turning them into useful websites.
So they’ve been flapping in the breeze waiting for me to do something with them.
Now I can, with all the information in your Domains Into Dollars course, get them doing something in the meantime.
I’m starting out small, but the main thing is I have started and with you guiding myself and others in this exciting area of domaining, only good things can happen.
I’m looking forward to your next posts.
All the best.
Tim
Dear Phil,
Thanks for the blog as it is a quick way to stay in touch and keep up in the information overload age!
I am a newbie to the domain business and I appreciate you taking this effort with a blog.
Sunita
Hi Phil
Interesting video - extremely tempting to move into virtual real estate and out of physical real estate!
On your Blog - thanks for the tips. I was unaware of “testing & tasting” - food for thought.
kind regards from Australia
Nadine
Even as a complete novice at domaining, I was aware of trademark infringement, but, not about the “taster” facility. I second the question asking for a recommendation as to who provides tasting?
Nigel.
Glad to see a blog tied into your course Phil.
I’m a “newbie” as well and only had a few sites until recently.
As for those posts asking where they can test and taste, I recommend you buy Phil’s ecourse. ALL the info is included and much more. Just follow the well explained steps and YOU’RE ON YOUR WAY!
I have to agree with Rick. Get the course, and you’ll be fired up to really dive into this business. It’s as clear-cut a course as you’ll ever see.
I too agree w/ Rick & Billy. Get the course, it’s really well worth the money.
I bought some courses on how to make money online - Phil’s DIDs is the only one that actually made me money!
(I put in a LOT of hours so far and haven’t made a lot, but it’s profitable and my profit margins are growing monthly).
Most folks have summed up my thoughts. Can you put in your resource section for members, links to sites about trade marks and maybe there’s one you can search Domain names at to see if its trade marked? Also would be interested to see a video about best low cost ways to drive traffic to a site or parking page.
Keep up the good work its very much appreciated.