Is domaining closer to real estate… or closer to gambling? (3.Viewing)

NiceNIC · Monday at 5:00 AM

HI, there. I’ve been thinking about this a lot lately.

Do you think domaining works more like real estate, where research and patience pay off? Or does it feel more like gambling, where timing and luck matter more than skill?

Have you had moments that made you switch sides?

Eby · Monday at 6:43 AM

Good question…. I like to know that too.

It could be both, depending on the portfolio.

MacMan · Monday at 7:53 AM

If you have a great domains, it's closer to real estate.

If you have an average domain, it's closer to gambling.

theinvestor · Monday at 8:18 AM

The higher quality domain you have the more difficult it is to sell for its fair value. So I consider it all luck and timing.

DomainRecap · Monday at 11:27 AM

Domain investment is like continually buying lottery tickets, with a slightly-differing level of odds depending on quality. But luck still has a lot to do with it and all domains have extremely low odds of ever selling for an actual profit.

It's also a lot like poker tournaments - skill and aptitude can certainly help over the long term, but that edge is very slight indeed compared to the cards running hot for you. When you see a drunk yahoo catch Pocket Aces and call an all-in on Phil Ivey's Pocket Kings, and then busts Phil out, this fact becomes blatantly clear.

Even the very best poker players take part in 50-100 tournaments a year and might win 1-2 of them, and some years none; same with domains.

Eby · Monday at 11:28 AM

MacMan said:
If you have a great domains, it's closer to real estate.
If you have an average domain, it's closer to gambling.

That is the million dollar question. "To a cockroach, its child is a gazelle" So who is to say which is a cockroach and which is the Gazelle? At least I own Gazelle.ca

DomainRecap · Monday at 11:31 AM

theinvestor said:
The higher quality domain you have the more difficult it is to sell for its fair value. So I consider it all luck and timing.

Point 1: I agree totally, and buying wholesale domains for hundreds or thousands of dollars just makes them more difficult to sell for a true profit, so there is no 'magic bullet'. Everything is a trade-off.

Point 2: While I admit there is a lot of luck involved, as you require an interested and motivated buyer to make a sale, but skill, time and effort do increase your odds of that buyer walking in the door.

Ageesen · Monday at 7:15 PM

Bad domaining is a skills issue. Two different people with the same portfolio will get different outcomes.

Outbounders gets sales. How you outbound makes a difference.

Those with grails can sit back and wait almost indefinitely (low upkeep, large sell price). Those guys are more akin to real estate investors with luck/money/timing.

Majority of domainers are playing poker and gambling. The best will make sales (end up at the final table a lot), the rest will fund the registries and infrastructure, get mediocre sales and keep trudging along.

NiceNIC · Tuesday at 4:43 AM

I think that once you buy based on real demand rather than adrenaline, it stops feeling like gambling, right?

MapleDots · Tuesday at 6:54 AM

The thing about domaining and gambling is it really only takes one sweet hit to make a life altering difference.

NiceNIC · 2025-12-10T04:20:09-0500

Eby said:
Good question…. I like to know that too.

It could be both, depending on the portfolio.

Yeah, the portfolio matters, but market depth ultimately decides whether you’re investing or just guessing.

MacMan said:
If you have a great domains, it's closer to real estate.

If you have an average domain, it's closer to gambling.

If you buy a lottery ticket that’s guaranteed to win, doesn’t that basically make it a check lol?

theinvestor said:
The higher quality domain you have the more difficult it is to sell for its fair value. So I consider it all luck and timing.

Sure, high quality raises value, but clearer use-cases often matter more than pure timing.

DomainRecap said:
Domain investment is like continually buying lottery tickets, with a slightly-differing level of odds depending on quality. But luck still has a lot to do with it and all domains have extremely low odds of ever selling for an actual profit.

It's also a lot like poker tournaments - skill and aptitude can certainly help over the long term, but that edge is very slight indeed compared to the cards running hot for you. When you see a drunk yahoo catch Pocket Aces and call an all-in on Phil Ivey's Pocket Kings, and then busts Phil out, this fact becomes blatantly clear.

Even the very best poker players take part in 50-100 tournaments a year and might win 1-2 of them, and some years none; same with domains.

I’m totally with you, DomainRecap. A good domain definitely boosts your odds of “winning.”

Ageesen said:
Bad domaining is a skills issue. Two different people with the same portfolio will get different outcomes.

Outbounders gets sales. How you outbound makes a difference.

Those with grails can sit back and wait almost indefinitely (low upkeep, large sell price). Those guys are more akin to real estate investors with luck/money/timing.

Majority of domainers are playing poker and gambling. The best will make sales (end up at the final table a lot), the rest will fund the registries and infrastructure, get mediocre sales and keep trudging along.

I feel like your take could clear the fog for a lot of confused domainers! Thanks for such a sharp answer, Ageesen

MapleDots said:
The thing about domaining and gambling is it really only takes one sweet hit to make a life altering difference.

Guess I’ll just buy a lottery ticket tonight then haha.

marco · 2025-12-10T20:23:00-0500

I come from the construction industry. As builders, we build, but we’re not interested in property management. Its hard to do both.
Over the years, I’ve acquired many domains, thinking they were land, but I never put up a billboard for sale. Now, I’m starting to do that.
Let’s see if it works.

Most construction guys I hang out with are gamblers and like to play in tech investments. However, we also try to stick to one rule in construction: at least make 25% on a house. So, borrowing capital at 4-7% (for example) makes sense to build a house or a project. I’ve always wanted to build some of these domains into buildings that I could flip for a much higher percentage, since it’s internet. However, I’m not sure if I can find a property manager to pay.

NiceNIC · 2025-12-11T04:26:39-0500

marco said:
I come from the construction industry. As builders, we build, but we’re not interested in property management. Its hard to do both.
Over the years, I’ve acquired many domains, thinking they were land, but I never put up a billboard for sale. Now, I’m starting to do that.
Let’s see if it works.

Most construction guys I hang out with are gamblers and like to play in tech investments. However, we also try to stick to one rule in construction: at least make 25% on a house. So, borrowing capital at 4-7% (for example) makes sense to build a house or a project. I’ve always wanted to build some of these domains into buildings that I could flip for a much higher percentage, since it’s internet. However, I’m not sure if I can find a property manager to pay.

Great to hear perspectives from someone outside the domain world.

I’m curious, have any skills from construction carried over and actually helped you in domaining?

marco · 2025-12-11T07:12:43-0500

NiceNIC said:
Great to hear perspectives from someone outside the domain world.

I’m curious, have any skills from construction carried over and actually helped you in domaining?

Passion to build companies. But mostly architecture. When you have great blueprints you are always able to sell the building. Beautiful buildings sell. Location is important, but if you put more $$$ to make it beautiful, it's a guaranteed sale. Hence why I think premium domains with the right team and architecture for a business will sell.

Is domaining closer to real estate… or closer to gambling? (3.Viewing)

NiceNIC

NiceNic.net

Eby

Verified Member

MacMan

Member

theinvestor

DNC.ca

DomainRecap

Member

Eby

Verified Member

DomainRecap

Member

Ageesen

www.onl

NiceNIC

NiceNic.net

MapleDots

MapleDots.ca

NiceNIC

NiceNic.net

marco

Member

NiceNIC

NiceNic.net

marco

Member

Sponsors who contribute to keep dn.ca free for everyone.

Sponsors who contribute to keep dn.ca free.

Updated Premium Listings

Members who recently read this topic: 21