Tyler recently published an interview with him and the one thing that stood out for me was this; (when asked if he could go back in time)..

The best and easiest advice to give, though, would be to invest in domains. While I didn’t have much money back then since I was only working a part-time job, if I knew then what I know now, I could have invested $5,000 into domain names and sold them today for $5-$10 million – no exaggeration on those numbers, either.

Whilst $5-$10m may seem like crazy talk and crazy money, it’s a fair estimate. That’s how fast the market has grown in just a few years. I often talk about how i’m not really concerned with weekly wages or short term benefits – it’s the one big supersite i’m aiming for.

Buying domains is similar to buying houses in that you pick a good up and coming location, buy all you can afford and wait. Wait until demand starts to fizzle out, then sell sell sell. Thinking of domains as houses is in many ways absurd, but they’re perhaps more closely connected than we may think (investment wise).

I recently had a firm approach me about a domain i owned, they said they were simply inquiring about an asking price as it was part of their investment strategy. I suppose that’s when it really hit me that domain names are in fact real. They do hold ‘value’ and thus their value can rise or fall depending on demand. This is business, this is just like the housing market only on a much more complex scale.

Now i’ve only been in this game a short while… under 2 years, but i have managed to pick up a few decent domains… some that hold some sort of ‘value’ (in my eyes).

jpegr.com

airscare.com

beerchief.com

Of course waiting around 5 years, hoarding up sites and domains is much easier said than done, especially if you’re strapped for cash. But 5 years down the line, for the names alone, those 4 will be worth more than i could ever have imagined when i bought them.

I have the ‘grand slam’ of domains with regards beerchief, in that i own the .com .net .org .co.uk .eu .biz .info…….. ok, that may cost quite a bit renewing them all every year, but i know that no matter what i do with BeerChief – the site, even if i do nothing with it, the ‘beerchief’ army of domains, when combined, will be well worth those renewals fees as it’s very unusual two common dictionary words that make sense when put together and can be branded, totalling 9 characters are available in all extensions

I guess that’s a comforting thought, should i fail to deliver or should my ideas fail to deliver… the domains, at the end of it all should be worth something. Of course that’s a very negative way of thinking and not the first thing that came to head when i bought all those domains. But buying domains, QUALITY domains is a skill. I’ve bought my fair share or junk and let some expire, but there are still hidden gems out there and if you have the time and the patience, investing in domains is smart business.