Domains = Bullish (or bullshit?)

I'm consistently bullish on the future promise of premium domain names. The internet continues to expand globally, with great names (especially .com) in high demand.

But let's not be blind.

There are major impediments to successful domain investing. Choosing & handling hundreds (or thousands) of domains requires multiple skill types.

Domain markets are not very liquid, so it can be difficult to sell quickly.

Worse, major registrars and parking companies are themselves in business as direct competitors. Almost all of these firms buy and sell domains, and catch names at the daily drop. It's hazardous to need to rely upon your competitors to run your business. Within the domain industry there's much secrecy about parking revenues and domain sales amounts. A few major players are positioned to know and learn much more than the average joe. This leads inevitably to conflict-of-interest situations.

Major industry news and blogger reports reflect the prejudices and needs of competitive forces far larger than the typical small investor.

Some 100,000 domains drop everyday.

Each dropped name is a dream that didn't work out -- a failed project.

Sure there are exceptions (ten years later, may naturally be worth little). But such exceptions are few.

Every drop is a list of broken dreams, a trail of tears.

Celebrate success, but recognize risk.