speculative domain name buying.

NaturalInstinct · 16-06-04

<Rant starts>

Don't you just hate it when you're trying to find new domain names and 90% of the ones you want are registered but not pointing at anything ?

It really pi**es me off when people buy up hundreds of names with no intention of doing anything with them apart from waiting to be offered some money for them. I never pay these idiots for domain names, I just find a different one (eventually).

It just really annoys me that there are millions of really good domain names out there with just a hosting parking page on them because of these a**holes. What a waste.

<Rant over>

Frostie · 16-06-04

Couldn't agree more!

Prime example

I know what you mean though bugs the hell out of you at times, even when you contact the owner and offer a fair price - like £30-£50 for it, and they say no, but will consider offers over £5,000 !! Get a life you piece of...... and in 2, 3, 4 and out 2, 3, 4....... relaxxxxx

Edwin · 16-06-04

I see the situation very differently. I look at domain names just like other types of investments, such as property or shares. The PPC or affiliate income off of a portfolio of domains is equivalent to rent (on a property) or dividends (shares) and the sale of domains is equivalent to the disposal of any other asset.

Just like other investments, doing domains "properly" requires a good deal of time (researching new domains, chasing drops, finding buyers, optimising type-in traffic etc.) and money (paying for regs, paying to chase drops, buying speculatively in the aftermarket etc.)

Seen from a purely business vantage point (which is, frankly, the way you should be viewing it since the trend points to more consolidation in the domain name market, not less) the domain aftermarket is composed of several hundred highly professional "players" with portfolios in the thousands-to-hundreds-of-thousands of domains and then perhaps another 1,000 people with at least 100 domains each. For many of the larger players, "domains" are a full-time or semi-full-time occupation.

It may be frustrating to see that people "got there first" but in many cases you could be 5-8 years too late (I was registering the first domains to anchor my portfolio - now over 2,700 names strong - in 1996 - and have put in thousands of hours researching domains over the years since then)

Frostie · 16-06-04

I see the point being made by Edwin, but still think it is extremely frustrating. In my little mad world, I compare it to;

"Joe Bloggs goes to Sainsburys/Tesco/Asda at Christmas and buys every single turkey they have - frozen and fresh. He then carries them to the car and.... does nothing, just lets them rot. Meanwhile all other customers are left without a turkey, and instead have to make do with Cornbeef hash." - Is this sean as annoying?

See I did say, my little mad world!

I don't think there is anything wrong with it, and from reading Jons post, he too is not saying anything is officialy, legally wrong with it..... it just annoys some people beyond belief at times.

Shak · 16-06-04

Quote:

Originally posted by NaturalInstinct
<Rant starts>

It really pi**es me off when people buy up hundreds of names with no intention of doing anything with them apart from waiting to be offered some money for them. I never pay these idiots for domain names, I just find a different one (eventually).

<Rant over>

I get annoyed at plonkas who call people like me idiots in public forums.

make a point, but no need to slag people off.

its all about the £££, whether you sell vibrators to 85 year old women or buy domains for resale ...

Shak

Edwin · 16-06-04

Actually, turkeys are an incredibly inaccurate comparison.

Here's a more apt metaphor...

Joe Bloggs goes out into the countryside and buys up various parcels of land dirt cheap because they're not near anywhere at all - no roads, no railway, no utilities. Some he is buying because he believes there might be exploitable resources under them (minerals, oil, precious metals etc.) and some because he predicts - based on his research efforts, local knowledge and expertise - that people will one day want to live there, that the local railway line will be extended past his property etc.

At the same time, he buys up dead-end properties in various towns and cities, and then waits, trading some, redecorating some and renting some out.

Fundamental take-away point is this: DOMAINS ARE THE PROPERTY OF THE INTERNET. They're not a "commodity" (like turkeys) but they're a unique investment (like a specific property, an original work of art etc.) since no two domains can ever be the same.

Most people can afford to buy a painting done by a local artist. Very very few people can afford to buy a Picasso. Some art dealers make millions buying cheap and selling high - others earn enough to just about make ends meet.

Same with domains.

A prime domain can also be compared to a prime piece of land in the heart of the shopping district of a busy town. Even undeveloped, that land is worth a small fortune - yet it was once possible to pick up the same piece of land for peanuts (timing is everything).

NaturalInstinct · 16-06-04

nothing personal shak, it wasn't aimed at anyone in particular and I didn't even know you sold domain names.

I don't mean to upset anyone it just frustrates me. I think frosties analogy is closer to the truth than edwins, it's totally different from the housing market because houses are priced at sensible market rates, if the housing market were like the domain name market then 90% of homes in england would be empty. Domain names are so cheap that people can buy them all up and just let them sit unused which I find to be a terrible waste.

Anyway, as I said I really didn't mean to offend anybody, start a debate possibly, but not offend.

getvisible · 16-06-04

Quote:

Anyway, as I said I really didn't mean to offend anybody, start a debate possibly, but not offend.

thats my job

it annoys me but its just name of the game. To me its like someone buying all the steaks in the supermarket on a hot sunny day!

Edwin · 16-06-04

Quote:

Originally posted by NaturalInstinct
I don't mean to upset anyone it just frustrates me. I think frosties analogy is closer to the truth than edwins, it's totally different from the housing market because houses are priced at sensible market rates, if the housing market were like the domain name market then 90% of homes in england would be empty. Domain names are so cheap that people can buy them all up and just let them sit unused which I find to be a terrible waste.

It's been exactly like the housing market was hundreds of years ago, where basically anyone could buy title to staggeringly vast pieces of land for a song (so long as they got there first).

Nowadays, the market for domains is a lot closer to the market for houses (if you take out of the picture the fact that anyone can register thisisajunkdomain333.co.uk for peanuts) in that any decent domain costs decent money. Of course, there are still underpriced bargains to be found (just like in the real world there are bankrupty auctions, inside deals etc.) but by and large if you want a PRIME domain you're going to be looking at "real money".

rlonghurst · 16-06-04

Yes it's annoying when the domain you want is registered, but that's the way it's been for a long time...

FWIW, I think there's an argument that Nominet got it wrong when it made domains so cheaper to register (currently £6.09 for 2 years on 123-Reg).

They did it to make domain names cheaply accessible to everyone, but in reality it has meant that companies have bought thousands of .co.uk domain names on a speculative basis.

Devil's advocate: wouldn't it be much better if .co.uk names cost a lot more (£100 each?) to register or re-register. Would certainly curtail a lot of speculation and make domain owners think twice about the value of a name to them.

What about individuals who want a domain but couldn't afford that much? That's what .me.uk is for...

Cheers,
Richard