Domaining: A Hobby or Profession?
The definition of domaining is the business or buying, selling, developing, and monetizing internet domain names withe the sole intent of resale. The question always comes up, is domaining a business, or just a hobby. The real question is can the average person live comfortably off profits from domaining.
One of the main concepts that makes it impossible to answer this question is for very few, domaining is a business, and they can live comfortably of their profits, but for most, it’s just a side business, which I would consider a hobby. Where do you draw the line between a business and a hobby. Domaining is definitely a fun thing to do in your free time, and you can make some good money doing it. I just don’t understand how for so many they consider domaining their primary business.
Yes, there are a couple of domainers like Rick Latona who will buy a domain name for $10,000 and sell it for $100,000. But most people, especially in a tough economy, don’t have that original principal of $10,000 to invest. So it’s hard to make that amount of profit. For most domainers, they’ll buy a domain name for $10, and if they sell it for $100 and that’s a huge sale for them. Although the percentage of profits are similar ($10-$100 and $10,000-$100,000), the fact is that one guy made $90 while the other made $90,000. That’s a big difference.
Maybe this makes no sense that I’m even debating this question, but I want to hear what you think. Is domaining a hobby or business? If you could comment your thoughts below, I would really appreciate it and would love to read them.
I noticed for a lot of people it starts as a hobby and becomes a business(full time for some, part time for most, or so it seems). Rick S. had a good post on brokering to get started, grab 5-10% off a 50k sale and you’re in business!
Domaining is, as you described initially, buying, selling, developing, monetizing etc. of domain names. How one pursues it to make a living, profit, or put a smile on their face, has nothing to do with ‘domaining’, as it has to do with the ‘application’ of one’s self in that field. For example there are thousands of those who have a realtors license. Though only the top 2-3% of realtors make the ‘big’ money selling homes, that doesn’t mean those that only sell a few homes a year, or work at it part time are not ‘home sellers’ or ‘realtors’ too, they just do it on another platform or personal course. Same thing with domain investors or domainers. Domaining doesn’t mean one ‘makes a living’ off domain names, it means what we agree above it means. Being a ‘full time domainer’ is probably more in line to what your query was intended to answer. I feel it’s more your choice of terms is what is off here.
Depends on the scale of investment. A hobby needs to be supported by another income stream. If you are domaining without additional income streams then its a stand alone business.
Overall though Domaining requires passion whether it be a hobby or successful business and contrary to your definition a domainer does not have to sell domains to be a domainer.