This is actually a complicated industry; people really do need to learn the trade before throwing themselves headlong into it. I would guess that every domainer (not matter how successful) can raise their hand to wasting money on dross while they have learned about it all.

Thanks.

However, you and I might not live long enough to see it.

When I start eating green chicken and poop purple sherbet, you can expect “transparency” from Google.
Why don’t you tell a detailed story of your experience of losing money from a domain you bought at Sedo and using Paypal? What happened? Fill us in…

I have lost some money on one of the domain names I bought on SEDO.COM auction by using PayPal.com .

I have appealed several times to SEDO.COM and PAYPAL.COM, neither of them responded to my appeals.

Guys be careful, I am glad that ADAM has responded to such calls and glad that Google has taken over the domain parking business from SEDO and Others. It is going to be more transparent and cleaner from those bustards out there.

However, the overall effect has been moot, if you take into account all the other domain value factors that most pro domainers know. First, never buy a domain based on traffic stats, ESPECIALLY nowadays.

Second of all, TDNAM? Good grief. Although I have connections with Godaddy, I’m totally disappointed with the way their system manipulates the noobies, all across the board. That said, you can find some good deals there, just be smart and careful.

Thirdly, the sale prices of the two domains mentioned, “dvdroms.net” and “videosupermart.com” were cheap, and they aren’t bad domains, regardless of the traffic. (This doesn’t make what these “pump and dump sellers” legit) What’s ironic here is that the “traffic” pump that was posted didn’t push these domain values up. Maybe the buyers were pro domainers who ignored this obvious “promotional party favor”. I expect this to be true.

NOTE: It’s like the little fish asking his dad which worm not to bite, and his dad replies “Avoid the ones that say ‘Made in Taiwan’ on its butt.”

The same thing applies with buying any domains. Do your dang homework, people! The domain has to make common sense. It has to have some niche value. You have to anticipate how your domain purchase will play out as an investment:

1) Are you going to park it for PPC rev? (this is where common sense and deep research need to be applied)
2) Build it out and sell CPA or your own prodserv? (find a good inexpensive domain development company)
3) Or are you going to sit on it and wait for an end user resale?

In all cases, the domain should be short, memorable, and have a resellable prodserv. The techniques to finding how to do this is up to your own research and education. A quick way is hiring Adam (domainconsultant.com) or someone you trust as a consultant to help you figure this out. The dollars spent on having a pro domain consultant assist you with your domain purchases is ultimately more valuable for your ROI than going it alone, and arrrgggghhh, heaven forbid, you going on a “domain name buying spree cuz you caught the fever” on an idea that just won’t work.

A final word on TDNAM… oops… can’t speak my mind folks. I’m corporate now. They are sweeties. However, that Danica Patrick is a danger. Just got her second ticket in a year. Going 54 mph in a 35mph zone. Tsk tsk. Endorsement value dropping…

Great article, cuz.

Stephen Douglas

Even if there is traffic, it has to be related to something you are wanting to do to be worth something, and it won’t last forever unless the backlinks are still there.