It's funny but some people just don't know when it's time to cash out. They couldn't pick the right timing or make the best decision when it comes to this stuff even if their life depended on it. I understand this problem many people have though. It is not an easy decision and pretty difficult to decide and make up your mind on when it is best to cash out for good. Nobody wants to walk away from any type of business where the money is good. Of course nobody wants to cash out too early.
We always hope for the best.. We make excuses that the worst will never happen, when it actually can and of course we want to make just a little more money and then call it quits for good.. But when you are dealing with a lot of risk, you really have to know this stuff and play it safe instead of getting greedy and not realizing this before it's too late. Domains and stocks are pretty risky if you are in the business of buying for the sole purpose of reselling for profit without any other strategies. You need to know a few basics.. One of them is sell for any profit every chance you get on the risky type of holdings and keep re-investing and diversifying your investments... Constantly!
Want a good example? I got one for you... Back in October of 2005 I picked up the domain name adult erotic games dot com for $320 at an expired domain auction. It was a pretty good deal as it had a good ring to it and I was all about adult domains of course. I loved them all and I had to have as many of them.. As long as they weren't overpriced or in the thousands range. I had plans for that domain and was going to re-develop it. So anyways, I parked it to see what type of traffic it has... and it turns out that this domain has some pretty good traffic. The traffic was converting nicely and it paid well. Within a few month's of buying it I had made over $30,000 from parking. Not bad for a $320 investment, right? 100x ROI is pretty good.
Before that domain expired, it was an active site for a couple of years apparently. It was about adult strip poker and other adult oriented games. The parking page was optimized with "poker" and "gambling" ads which paid really well. The users visiting the site were also pretty eager, or in other words "horny" in order to find what they were looking for so those few hundred people per day that were visiting the site were clicking around on the parked page and earning me a few hundred bucks. So I made my investment back pretty much within the first 24 hours and of course I was going to go ahead and sell it shortly there after... I flipped many domains. Some within days, some within weeks... Most I ever held on to the risky types of domains was a couple of month's. I re-sold for profit. This is my best strategy when it comes to it.
I don't remember whether I had put it up for sale somewhere or whether somebody approached me to buy certain domains and put in an offer for it but I did sell it at the end to somebody off of DNForum.com for $70,000 in March of 2006. I wanted to sell it for like $100,000 at first but the best offer I got was only $70,000... Was it smart? Good move?? Should I have declined the $70,000 offer and wait for another one?? Well, I was happy with $70,000 because I knew that the traffic wouldn't last forever. I was happy with getting $100,000 in pure profit off of this domain within a few month's time. I wasn't going to risk anything and took the money. Sure, I could of shopped it around a bit more or whatever but I accepted the buy out offer and moved on.
The guy who bought the domain listed it for sale about 6 month's later, in September of 2008. He was considering offers starting at $160,000 and the buy-it-now price was $225,000. You can visit the sales thread over at DNForum.com and view the statistics too. The domain didn't sell though... Few month's go by and he lists it for sale once again. The domain is only getting 250 visitors per day on average more than a year later since I acquired it and it is making a few hundred bucks per month. Ouch! What went wrong? I am not sure but it looks like he switched it to a different parking provider for some reason... Go figure!
So anyways.. As you see, it is all about timing. You have to know when to cash out. I am sure he could of sold it for like $100,000 or $50,000 at least to recoup his investment and make a bit of profit but he didn't want to come down on the price. He kept on hanging on to the domain... Collecting the $7 for a long time. To each his own. He sold it eventually... Don't know for how much but that is the way it goes. Everybody can't win. But if you are smart and make the right decisions you can make money each and every time. Just don't get greedy.
I am no finance guru or have too much experience with buying/selling stocks for millions of dollars but I do have some close friends who make their living messing around with stocks but of course they got hammered as of late and they have been going through some tough times which is unfortunate. I have them coming to me for investment advice now because my business has not been effected at all. It is quiet the opposite actually. My operations are as busy as ever and things are looking pretty good both short term and long term.
My friends know that I have gotten unheard of and killer returns on some of my investments. Every time we would go out and sit at a club few years ago or something and they would say and brag... "dude, I made like 500% within 3 month's on this and that stock and I would laugh to myself quietly and then tell them I made that in one week off of domains and I didn't have to put up tens of thousands of dollars or do anything crazy" So these days they are asking me what is it that I am doing in 2009 and how they too can cash out their current investments that are on the decline and sucking big time and cash in on domains/development for example since real estate isn't a very good option. Virtual real estate is sounding a lot better with a nice safety net and they are just now realizing that they should of listened to me a long time ago. Yea...
I hate to see people struggling but It's hard for me to educate somebody who knows nothing about domains and e-business development so I don't try to do that. Instead, I try to bring them on as a partner. It saves a lot of headaches. I've done this successfully many times over and it has worked out well. So for anybody who is currently struggling to find that something to re-invest in or get involved with seriously.. I strongly suggest looking into business partnerships.
It is far less risky than trying to make it on your own and it makes the most sense. Of course you have to really do your homework and know who you are dealing with but it is what I suggest each and every time. It's hard to make it solo but if you team up with somebody who is already successful and you bring something to the table.. You too can join in and get a taste of the new money.
There is a lot of opportunities out there right now. If you are already successful at something then you can further expand and build on that success and help grow your business by forming more partnerships. I am sure there is a lot of people out there who would love to get involved with some sort of internet ventures and e-commerce businesses. It is after all where the big money is!
So if you run a successful internet company and know some people who are struggling with stocks or real estate, you should sit down and have a chat with them. Explain to them what your business is all about and why they should invest and/or partner up with you. Help them cash out and cash in on the next big thing. Take advantage of the current re-structuring that is going on and get aggressive. The timing is perfect. Your job is to get em on your side.
Articles at WannaDevelop.com
05/08/2010: Dozens of exact match product / shopping related sites at auction now @ Latonas.com 03/19/2010: All domain development = $99 per domain... Pretty good deal, don't you think? 02/18/2010: New year.. New products... New prices.. New staff... Lots going on in the development biz! 02/06/2010: Must see auctions at Bido! Five days, back-to-back all this week.. Over 100 keyword domains priced to sell! No offers will be turned down 12/01/2009: Domain Stryker pre-registration now officially open... Launch date set for later this month!
