At the domain names convention, I meet a guy who has sold a few domain names for over $1Milion each. I am impressed.
Later I meet a guy who has revealed that he, too, sold a domainname for over $1M, and had bought it for $20,000. I am more impressed, and I start to wonder about the first guy…. should I have been impressed? Maybe he is a salesman selling domains… in which case, there is no basis for respect, without knowing what was involved inachieving the sale.
At the evening cocktail party I learn about another guy who brags that he bought a domain name for $1M. He’s a marketer. Should I be impressed?
Of course not. There is so much detail behind the scenes of that… he could be a fool who bought from a great salesman; he could be just spending stupid money from some super profitable enterprise or a funded startup with more money than brains; he could be the genius that snapped up a $10 million dollar opportunity for $1M.
I think you should immediately respect the guys who SOLD the $1M names, without a doubt. Except for the unusual cases of deception (i.e. sold a $2M name at a loss, lol) they have proven their success. They sold the name. It’s done… the data is in… and they suceeded.
The big difference between the guys who have SOLD domain names and the guys who BOUGHT domain names is the success metric.
What about the guy who paid $1M for a domain name? Isn’t he to be admired, since he’s now so respectable-looking with his rare, premium domain name?
Not yet. You have to wait, and see what he does with it.
Therein lies the rub.
A $1M domain name may, indeed, be a great opportunity, but that is exactly what it is: an opportunity. You are investing in an opportunity, not achieving success. And that investment comes with risk — if you wear your $1M domain name proudly, and do NOT also demonstrate extreme value on that domain name in your marketplace, you will look bad to all who bother to look. Your $1M domain name will make you look bad.