Like anyone who develops niche websites I am always on the lookout for good domain names. I follow forums where "Domainers" hang out and buy when I see a deal. Of course, it's easy to buy more domains in an hour than you could develop in a week.
I have read the stories of how some of the early domain investors made a killing and the idea of buying and selling domains for a profit is attractive. However, as you look further into the business some nasty little issues emerge if you are an introverted sort like me.
For starters, the easy pickings are gone. You are VERY unlikely to hand register a killer dot com domain. Millions are held by speculators who think they are going to make their fortune. Just visit a site like Sedo.com and see what domain speculators think some of their garbage domains are worth.
When I get a new idea for a site I want to develop I always check to see if the dot com is available. It almost never is.
One rule of business is "You make your money when you buy." If you plan to deal in quality names you are going to have to find and negotiate their purchase from the speculators who have already registered them. That is a lot of work. It also requires serious negotiation skills. I have read enough threads by domainers to know that is not a place an introvert like me should venture into. Lots of tricks to keep buer/seller from learning to much about each other. Problems with PayPal payments which are reversed after the domain is transferred, etc.
The sell side is just as bad. The domain marketplace is a global bazaar. The approach to buy/sell varies tremendously with culture and world view. Can I say lowball offers, lies and deceit of many kinds, hard nosed, in-your-face negotiating tactics, etc. Again, it's not a place an introvert like me should go.
As a result I let many of my domains expire when I realize I have better ones to develop first and get tired of paying the renewal fees. It feels like a waste, but I try to be more selective in my buying so it becomes a smaller issue.
