As we all know, the Internet is booming with opportunities, and the first step to tap into those opportunities is to buy a domain name for a website.
Available domains are pretty cheap (around $10 per year), so most people start buying one after another.
That is what happened with me too. Right after I started working full time on the Internet I got fascinated with the idea of launching websites on all sorts of niches, and as a consequence I bought hundreds of available domain names.
Most of these domains were average to poor quality, as one should expect since they were available.
The result? I wasted a lot of money.
Out of 100 available domains that I bought I only keep 3 or so as of today, the rest I let expire over time because they had no potential.
When I spent money on medium to high quality domains (think $300 per domain and upward), however, I always got a positive return on my investment.
Bottom line: buying average domains for $10 is usually a waste of money (unless you have an immediate use for it, like a test website). A much sounder strategy is to buy fewer (even just a couple) high quality domains.
Here is an example to illustrate my point. Suppose there are two guys with $500 each, wanting to invest in domain names. The first one buys 50 available domains for $10 each, while the second one buys only 1 domain for $500. After a couple of years I am pretty sure the 50 domains of the first guy won’t be worth much, if anything, while the $500 domain the second guy bought will be worth at least the same amount of money, if not a lot more (depending on how he developed the domain into a website).
The next time you get an urge to buy that free domain for $10 (we all get it once in a while!) think twice, cause those will be $10 you’ll never see again!