Domain name investing can be a hobby, time passing or a serious endeveour. The choice is quite easy when put in layman terms. It all goes back to investment money. If you are investing hundred bucks in a domain name it can also be a serious endeveor but more times it is just a what-if type of a adventure. If you are investing thousands of dollars in a domain name the investment in domain name has to be taken serious all the steps of the way.
Make sure you have a strong investment margin set
This is important aspect of any investment. You need to have low and high margin set for your investment. Negotiations start a bit above low margin and should not end over the high margin. This way investment goes as planned and you will have your plan set for further investments. However since we are not living in a perfect world the things can go wrong during the investment process and you need to cover for those situations. This is why investment margin needs to be set as flexible as it can. Of course that you want have a one dollar low and one million high margin – this would be no margin at all. Thus margin should be set according to a research on the particular domain name you are investing into. The key here is a research, of similar domain names sold in the past and a domain name potential of your target domain name.
Make sure you are negotiating with the right dealer
Since domain name industry is still young there are many shady players involved. Before you start negotiations and actually invest your funds in a domain name you need to be sure that domain name seller is actually the owner of said domain name. Research also need to be conducted on this particular seller previous deals if your investment is higher than ten thousand dollars. You do not really want to be scammed investing this kind of money in a domain name. Also be patient if you are investing high, there is no need to do a overnight deal and you can see seller seriousness if they also have nothing against taking the whole deal slow and steady.
Make sure you have a good plan with the domain name
This is of outmost importance. Once you have invested your money in a domain name, it does not help you much if you will have it sitting collecting dust (or nickles) for months. You need to have predetermined plan of what are you going to do with the domain name. I would go so far to say if you do not have a plan for a particular domain name do not even think of investing. Business plan is paramount in your investment as it should be in any serious endeveor you are trying to conduct. On the other hand if you are investing for fun or out of the hobby, then by all means try and get your pants wet, you would not lose much and the opportunity to learn is great.