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The Disciplined Domainer Guide

Tips & Best Practices To Start Your ENS & Web3 Journey as a Disciplined Domainer!

Method by Method
September 17, 2022
in Ecosystem
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If you’ve been around #Web3 space for a while you’ve no doubt been exposed to the vibrant & growing ecosystem of ENS domains.

There are plenty of use-cases for ENS names and we have covered them extensively in various articles on web3domains.com.

ENS Domain Names have been having higher transaction volumes & activity than many of the so-called “blue-chip” NFT projects. This bullish trend just goes on to show how fast the community has been growing and how desirable some of the domain names have become for buyers (022.ETH sold for 69ETH, & anon.eth for 25ETH).

Today, I wanted to talk about the best practices that you can follow on your journey through the ENS Domains space:

1. Exercise “Caution”

It’s important not to “ape-in” to trends, you don’t want to be following blindly because you’re seeing others do it. This is how you end up being someone else’s exit liquidity. If you take a look at recent trends in secondary marketplaces you’ll find A LOT of flags, emojis, underscores & many more domain sub-types being registered by people who are unable to find adequate buyers on the secondary market.

2. Don’t Be A Stranger

The ENS Domain Name community has some of the best people in this space. They love sharing insights, talking about best practices & help you avoid the pitfalls. It’s a great first step to reach out, join spaces & learn from the experienced vets and OGs of this community.

3. Quality Over Quantity

When you get started in this space, it’s natural to try to “hoard” names you think would sell out quickly & grab as many possible sub-names that can be associated with the idea. While this can work for some people, more often than not you will end up on the losing end. Instead, it’d be suitable to go for quality names that can hold some branding value for the buyer & showcase a strong narrative.

4. Observe Sales

It’s great to look at big headlines that celebrate 10 ETH+ value in sales. However, not everyone is lucky to be able to constantly find those gems. As a domainer, it’s important for you to observe trends by looking at sales activity on secondary markets like ENS Vision, OpenSea, LooksRare, or X2Y2. This will show you the current “trending” value for certain names & allow you to price your domains effectively and accurately.

5. Strive For Patience

The world of ENS Domain Names requires patience. The space has opportunities for people across the fold but you have to be able to aim for the long-term. If you don’t find value in registering your domain names for more than a year. You must ask yourself, why would someone else?

Renewals aren’t cheap and finding interested buyers is not an instant process. You must always aim for a longer horizon & plan to dig deep for the winter.

6. Finding Value

As you start off in this space, remember to keep your portfolio diversified. While registering domains, you must ask yourself, “Who Would Want This Domain?”. If you register ChickensWearingHats.eth, sure it seems like a cute place to share some weird pictures, but this isn’t something anyone would pay $$$ for, whereas if you register something like getloans.eth or fintechbank.eth.

You are creating a clear use case for a future business or company owner. There’s inherent value in names that drive a purpose. When you’re starting out in this space, it’s easy to lose track of this and go overboard with ideas that pop into your head. You must find the best ways to project the value and explore ideas that validate your strategy.

7. Letting Go

For new investors, the moment they start getting offers on some of their names name, they seem to get emboldened and think that perhaps they “devalued” their name and offered it for less. The truth is, while there are many names that can be found for cheap in the secondary market its important to be realistic in the pursuit.

If someone can use your .eth name as an identity for a business or for utility in the future,  it makes sense to ask thousands for it, but if it’s just a cute collectible that is a short-trend in .eth names, perhaps the $20-$50 value is fair & you should capitalize on it.

8. Advertising Fit

In the days of growing ENS Domain Names, it’s not enough to list your .eth on a few secondary marketplaces & expect it to be sold out quickly. You must be diligent in how you advertise your names, create a portfolio, network with people, and showcase your names in ways that attract attention & get people talking. Maybe even slap on some interesting images on your .eth to attract some eyeballs.

You should be doing everything you can to bring visibility & while also identifying potential buyers for your .eth name and speaking to them. Perhaps it’s a business or a brand or potential DAOs that could use your .eth address. If nothing works & you don’t find interest then perhaps you’ve gone a bit too niche and it’s time to re-evaluate your strategy.

The world of ENS domains is exciting and there are plenty of opportunities ripe for the taking!

However, in this ever expanding space, it’s important to be smart & patient.

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Method

Method is a retail investor, passionate about learning new languages, cultures and exploring developments in #web3. Method has years of experience working across different disciplines in the games industry and is now on a quest to document and embrace new developments in the blockchain industry.

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