7 New Year’s Resolutions for Domain Investors
With the start of 2016, it's time for many domainers to rethink their strategy for the New Year. Both new investors and seasoned veterans alike will be hoping to make 2016 a big year. But to do so, you'll need to be careful about your buying and selling decisions.
As you build your portfolio in January and beyond, keep these 7 important resolutions in mind.
1) Do your homework
Seems obvious, doesn't it? You'd be surprised at how many investors make buying decisions based on very superficial insight into the value of the domain they're buying – particularly if they're trying to break into the Chinese domain market. As such, many buyers end up spending too much. Meanwhile, other buyers are missing the boat entirely by not knowing where to find good domains in the first place. In both cases, a lack of knowledge is the culprit.
Make 2016 the year that you become a domain market expert. Set time aside every day, or every week at a minimum, to follow the latest trends, news, blogs and insight from industry insiders. It will make a huge difference in your success in the New Year.
2) Rely on experienced brokers
This is especially important if you're interested in the Chinese market. Relying on experienced brokers, who are well versed in both American and Chinese culture, will enable you to accurately appraise domains, find out about confidential listings, and find buyers for the domains you own.
3) Treat your investing like a business
It's time to get serious about the way you invest. Turn your activities into a full-time business, and treat it as such by paying closer attention to your cash flow, revenue projections, asset potential, and business plan, among other factors. Don't simply buy a domain here and there. Be consistent with your strategy and become your own domain-investing CEO.
4) Consult with a tax professional
If you're running your investing like a business, you should also be thinking about how to maximize the tax benefits. You may be able to take deductions for things like registration fees and office supplies and computer equipment. Speak to a tax professional or accountant to find out how.
5) Review your portfolio
If you haven't done this recently, now is the time – especially if you have expiration dates coming up. Before renewing, take the time to carefully consider every domain in your portfolio. Do you have a specific game plan for each one? Do you know how long you plan to hold it or how you'll connect with buyers?
Keep a razor-sharp focus on your portfolio in 2016, especially if it's getting larger by the week. Have a plan for every domain and stay on track with those goals throughout the year.
6) Use last year's results as a guide
Were you actively investing in 2015? If so, what worked? What didn't? Determine what your strengths and weaknesses were, and use those as a guide to improving your strategy this year.
7) Don't become lax
If you're all revved up right now for an amazing 2016, don't lose that motivation. By the time February or March rolls around, less serious investors will fall back to their lackadaisical investing habits (treating it more like a hobby than a business). Don't let that happen to you. Stick with it, stay focused, and make this your best year yet.Back To Articles