I am currently a platinum member at DNForum.com and definitely take advantage of my oppurtunity to go in the chat room, and chat with some pretty well-respected domainers. Recently, as I was talking with a few domainers in the chat room, they were talking about how you need to spend a lot to make a lot in the domain industry. And I felt that was just a major misconception that they had in their minds.

Of course, there are situations where you spend a lot, like buying a domain for $2,000, then sell it in the $XX,XXX range. But then there are other situations where you can buy a domain for $2,000, and then lose a lot because it’s not worth what you thought it was. Both examples happen often in the domain industry.

Personally, as someone who deals with many lower cost domains, I feel as though this whole conception of the more you spend, the more you make is just plain out, WRONG! I mean, yeah, in some cases it can be true, but you can make just as much is not more on a low-cost domain that you either buy through the forums, or register.

I would say that what you make on a domain isn’t based on how much you buy it for, but instead based on what the buyer of the domain is willing to pay. I am a strong believer in the quote, “The value is in the eyes of the beholder,” which I feel is a perfect quote to prove this misconception wrong. It shows that the value of a domain is seen in a million different ways. While someone might say, oh, this domain is useless to me, and it’s worth regular fee, others may say, this is the perfect domain for me, I want it at “X” amount. At no point in time are you evaluating what the seller paid for it. Whether the seller paid $10 for registering it, or $2,000 from someone else, all that matters is what you are willing to pay for it. Some people are willing to pay $4,000 for a domain that was purchased for $10 by the seller, while others are willing to pay $4,000 for a domain that costs the seller $2,000. So in essence, you can make a ton of low-cost domaining as well. You are evaluating the domain itself. There are good domains left still available to register, ESPECIALLY acronyms. YOU DON’T NEED TO SPEND A LOT TO MAKE A LOT! Please feel free to comment your feelings on whether this really is a misconception, whether you believe that the more you spend, the more you make, or just your feelings on this idea.