Each and everyday you hear stories about some name getting thousands of dollars from the buyer. You also jump right into the game of domaining and hope for that lucky day to arrive when someone might get interested in your domain name. Right?
How to get started?
The main problem with newbies over here is that they do very less research and start spending their money on useless names. After 6 months or a year their moral goes down the drain and they are back where they were but with lighter pockets then before.
Some people get into the trademark mess. They get sued by trademark holding company and then they show their temper openly on forums and other message boards.
Some can't even monetize their domains to get the renewal fees for the upcoming period.
If you have 4 or 5 domains then you can surely shed the amount from your own pocket. But when the figure goes around 100's and 1000's it is very hard to renew the domains for the future.
My advice to newbies would be to stick at 25 to 50 domains. They can earn for 10 or 20 renewals per year if your names are below average. Some domain might get you more revenue and it can fill the gap for you. Ultimately the main thing is to not lose a domain for nothing. You should at least get its registration fees from it. This will not start downfall of your domain empire which you want to build. 1 dollar loss is also a big loss if you have more then 100 or 500 domains in your domain portfolio.
So what kind of domains you should buy?
Choose wisely on which name you are putting your money. Three characters .com's are creating a lot of chaos right now in the market. Their prices goes sky high in domain name aftermarkets. Generic dictionary words are also long gone. New TLD's are not so stable right now, dot-com still rules the internet. You might get lucky in some other TLD's but I wouldn't advice you if you are new in the game.
4 letters have 456976 combinations from AAAA to ZZZZ. Of them only around 5000 are left. Which is of course the garbage.
What do we do now if we still want to get out feets wet in this?
Look for some guy who is willing to sell his domain for less. There are plenty of places to find this kind of domains available for sale at lower prices. You can go to forums specially created for this kind of discussions. If you don't know any then here is the one Nameslot.com
Go there look for some domains which might fall under our category and then approach the seller. Here also lookout for trademark issues and blacklisting for that particular domain. You can generally get this info from doing a whois search for that domain here Whois.sc
Keep your eyes and ears open for latest news. It might shed some light and you might be the lucky one who grabs that name for just registration fees and sell it for 1000's. Work on them and get every cent out of them. This will keep you in the game. The main thing over here is not to win the game but to be in it and be till the last.