We’ve all heard the saying, “Buy Low, Sell High” before. It’s amazing how this concept applies to so many businesses. Probably more associated than anything with this statement is the famous Stock Market where a person buys stocks for a lower price than they will sell for.

However, we must apply this to something else: The Domain Market. Analyzing this one night, I found many similarities.

1. Buy Low, Sell High

The goal of playing the stock market is to buy stock for a low price, and the sell it for a higher price, in the process making a few dollars here or there. The same can be applied to domains. Buy a domain low, sell it to someone else for higher. A core principal.

2. Dividends

Dividends are money or profit paid out to a shareholder just for owning stocks in the company. Not all companies pay out dividends, and the amount is based on how well the company is doing. This can be compared to parking a domain. Just for owning a domain, you can park it somewhere and make money. The owner doesn’t do anything, they just get money for owning the domain.

3. Stock Exchanges

Stocks are traded on stock exchanges. The most common being the NASDAQ, the AMEX, and the NYSE. Similarly, domains are traded on places like forums, Ebay, and Sedo. You can also go to foreign stock exchanges or foreign websites for domains.

4. Stock Brokers

When a person buys a stock or places a trade, they usually do it through a stock broker. The broker keeps the records and the stocks. Registrars like GoDaddy, Moniker, and Name do the same thing. Allow you to trade domains and keep domains.

With all these similarities being drawn, you may be asking yourself where Mr. Domain points out the difference. Here is the major difference I find: You control the price of your domain; Stocks can fluctuate one way or another.

People forget this lesson over and over again when trying to be successful domainers: You control how well you are going to do. Whether it be putting in the extra time, emailing that extra person, or writing that extra article, everything matters. A domains price is determined by whatever someone is willing to pay for it. If you make a website out of a domain the price will go up. If you park a domain and make money the price will go up. If you give links to the domain the price will go up.

In the stock market, usually you can’t control which way the stock is going to go. It could boom one day up one-hundred points or drop into Chapter 11 (I hope no one has ever done that.) Sure, people may point out the “What if I own the company?” My response, “What are a couple hundred thousand dollars to start your NYSE listed company than less than $20 for my website?”

I would like to hear your thoughts, comments, questions or concerns. Please comment, tell your friends, and subscribe to the newsletter!

Also, any other connections you find I would love to hear. Maybe we will even have a contest for the best similarities.