Domain + Blog Investing vs. Stock Market Investing

[milkandhoney]

I've been pondering this thought based on the uncertainty faced in the world's global economy...

If you knew how to manage + grow blogs, why would you not have the majority of your income invested in blog sites and premium domains instead of a stock market that you have no idea what may happen (if) if the market completely tanks...?

The reason I add domain investing into the mix is because domains are 1 of 1's so if you own insanely rare domains then in theory, all it takes is a big dog to come along in the coming years and offer to buy it for a far larger price than you paid for it.

What's people thoughts on this?

 

[wikibum]

Simple answer is diversification. Like the famous saying says "Don't put all your eggs in one basket".

You don't want to invest everything you have in one area. What if Google has another fire or worse, they decide to slam the listings with even more ads at the top or whatever. It's hard to predict what will happen in the future so why worry about it? If you have everything riding on one thing then you are at risk if that one thing fails.

Stocks come in many varieties (and their risk depends on many factors). You can even diversity with stocks (there are many types of stocks). You can buy gold or other precious metals. You can put some money in real estate. You should take out a loan and use that for investment as well.

Point is. Spread it out and diversify. All really depends on what you know and how much you have.

 

[Steptoe]

The reason I add domain investing into the mix is because domains are 1 of 1's so if you own insanely rare domains then in theory, all it takes is a big dog to come along in the coming years and offer to buy it for a far larger price than you paid for it.

So domains kinda = the OG NFTs

 

[Ryuzaki]

It depends. Are you growth mode or "preserve my wealth" mode? You can be in both at the same time.

The amount of ROI I can get out of a blog makes the stock market look retarded. But eventually you have enough money sitting around that it's eroding due to inflation, so you have to let it sit somewhere like a nice safe index fund or a money market account or something.

Domaining is like 95% gambling, 4% the ability to select and obtain valuable domains, 1% the balls to say no a million times until the right buyer comes along. What you don't hear about successful domainers is they have some crazy number of domains all being renewed year after year, many they turn down attractive deals for, to hold out for very few big wins. And you only hear about the big wins, not about all the renewal fees and the zillions of dummies passing the same losing domains betwixt each other so they can cash out of the game. It's not an investment method.

If you're wanting to grow, nothing beats working and providing value. Investing in the stock market for growth is asinine when you can start a business. Once you've made it and you need to park your money somewhere so it's there throughout your retirement, it's a different story.

 

[Golan]

Domaining is definitely a serious, high margin business. If you do it right. And indeed, you'd never hear a back side of the stories. Renewals, drops, losses. An average STR for a good, quality portfolio is about 2-4% a year. I mean, quality, not some random junk. And in order to know how to purchase quality, you need to have a strong experience. Which can not be obtained without many trials and mistakes. Usually the first 2-3 years are red for every starting domainer, and it is super frustrating. Most drop this business after the first year. Some are in black already in their first year, and they are the domain geniuses, they have this intrinsic feeling of names. I had this leverage that i could route the cashflow from my SEO domaining into names experiments and not to bother too much about losses. Made a lot of silly purchases and other mistakes. But once you know what is really sold, and if you are easy to admit mistakes, you are on the right way. Already in my 3rd year of the name investing i was well in black. In 2021 i sold for $199K Net, 2022 YTD already $315K. And mind that my English sucks balls. Other guys are selling much more.

But definitely, this is not a business for everyone.

 

[OlliK]

I view the difference in passive vs active income. If you invest into index funds, that is fully passive. A website is never fully passive, you have to manage a business, writers, etc.

 

[raypayola]

and to add to Ryu's point - growth is correct. The stock market is fine and ok but unless your an active trader and very good and willing to lose big, real estate is the way to go when investing. Invest in real estate before you get into index funds - up into the point to where ur maxed out on dealing with real estate issues and then put the rest in nice Vanguard growth fund etc.