There have been emergences of numerous domain name investors due to the millions of domains that are purchased and sold each year.
However, these domainers can be classified into four categories: Aristocrats, Builders, Hustlers, and Freshmen.
Freshmen domainers refer to those people who have been purchasing and holding numerous domain names but are yet to make considerable and consistent annual profit. Hustler domainers refer to those savvy dealers who sell their domains for a significant profit. A builder is normally a long-term kind of domainer that works to enhance the value to several domains.
Finally, an Aristocrat is one who registered their domains in the mid-1990s and is making huge profits. They’re definitely the industry big wheels.
So, under which category do you fall?
Type 1: The Freshman
Superficially, a Freshman might seem to be a successful investor in the domain name industry, but in reality, they are just investing in purchasing domain names without making significant profits. They are yet to get the experience needed to steadfastly differentiate good domain names from the rest and to come up with better strategies of generating revenues from their domains.
Although they might own a remarkable number of domains in their portfolios, they’re likely not able to cater for the maintenance costs of their domain portfolios, leave alone making some profits.
However, these domainers can then advance to Hustlers or Builders if they learn and develop better strategies.
Normally, typical Freshman domainers are:
- Newbies who venture into domain name industry because they understand that there are considerable profits in this field, but have no experience of how to consistently turn the domains into profit.
- Normally active on discussion forums and boards, asking numerous queries and responding (often imprecisely) to others, contributing ideas, or trying to create an image of an authoritative person.
- People who purchase and own a large number of domain names without a better plan of how to make money with these domains. They feel that holding numerous of them is key to being successful.
- People who like to keep up with emerging trends, jumping into the next great craze. The moment they spot that a certain domain is the next prospective thing, they rush to buy related domain names with speculation that these domain names will reap big in the near future.
- Those who spend a significant amount to buy any other speculated domain name only to find themselves in debt. They spend more than what their domain will make in a year, thereby lacking the money to maintain it even.
- Those who habitually rely on holding strategy to add value to their domains, despite the domain name recording a downward cycle in holding revenue over the past few years.
Type 2: The Hustler
Hustlers are always investing, and they consistently make a profit. Despite being focused on tossing domain names, they understand that connections are critically crucial even in the web-based field of domaining. They make significant efforts to link up with successful people, and build relationships that will help them achieve success.
Typical Hustler type domainers:
- May or may not be newbies to the field of domain names, but they survive by the old strategy of buying when low and selling when it adds value to make sure they generate some profits.
- Sell domain names for a living and are not trend or fad chasers.
- Are often brokers of websites and know where to get great bargains on all the things that are involved in website making.
- Are creating their name in the domain industry through fortitude and determination.
- Are not seasonal domainers but are here to stay.
- Are focused on making money and flipping products for some consistent and considerable profit rather than pursuing one domain that will make them amass millions of money.
- Often start selling domain names as a “side-hustle”, eventually becoming skillful and profitable in the field. They eventually quit their main job to start dealing with domain names on a full-time basis.
Type 3: The Builder
A Builder is a domainer who purchases certain domain names with an aim to develop them into services, brands, e-commerce sites, products. Builders have clear vision and goal in mind when purchasing a certain domain name, and their priority is to generate revenue in their plans for domain development.
Typical Builder type domainers:
- Will buy a specific domain name with a long-term goal to build and add value to their online investment. They use domains as a way to sell their products or service, provide content or display portfolios.
- Are interested in developing sites for e-commerce, marketing, and lead generation.
- Are focused on revenue generation and thus, careful choose the domains to buy rather than rushing to buy a domain out of mere speculation or with a more shotgun approach.
- Understands that the type-in traffic can easily be obtained from being in the top-three positions of the Search Engine Result Page of Google or Bing.
- View a domain as a long-term project, unlike Hustlers; Builders typically hold onto their online investment rather than trying to cash them when they are on demand.
Type 4: The Aristocrat
Aristocrats are the legends of the domain name world. These domainers had a vision (and some luck) when they first registered their domains for free before it then became $100 for a two-year term. They focused on the single-word, nonspecific domain names that can be virtual money trees.
Typical Aristocrat type domainers:
- Realized years ago that domain names were the online real estates; there’s only so much oceanfront investment that everyone wishes to have or own.
- Risked big and bought domain names before they had any significant value, paid $100 for each domain, in a move that seemed like a waste of money by many at that time.
- Make considerable profit parking single-word, nonspecific domain names without having to flip them or investing any effort to build them.
- Portfolios have several thousands of domain names, and they routinely sell a few of their quality domains for six or even seven figures.
- Are seen by many as the gurus in the domaining industry and are highly respected.
- Have in various occasions developed an ego that matches their domain name portfolios.
In which category of domainer are you in?
By now you know your traits and the category that you fall in? Are you in more than one category? Where do you want to fall in the next couple of years?